Certification of transmission system operator Georgian State Electrosystem in accordance with the European legislation (Third energy package)
By the decision of April 1, 2021, of the Georgian National Energy and Water Supply Regulatory Commission, JSC Georgian State Electrosystem was preliminarily certified as a transmission system operator.
In accordance with the international obligations undertaken by Georgia, the Law of Georgia on Energy and Water Supply, which entered into force on December 27, 2019, among other issues, defines the obligation to certify the transmission system operator. Certification is a procedure that determines the compliance of a transmission system operator with the independence and unbundling requirements (under the criteria of the 3rd European Energy Package). Following the certification decision, the Georgian National Energy and Water Regulatory Commission oversees their consistent compliance with the independence and unbundling requirements, established by the law.
By law, the transmission system operator unbundling model is ownership unbundling.
The certification of JSC Georgian State Electrosystem was preceded by the implementation of the Transmission System Operator unbundling Plan approved by the Government of Georgia on November 13, 2020 by Resolution N682.
Based on the certification application and attached documentation submitted by the JSC Georgian State Electrosystem, the Georgian National Energy and Water Supply Regulatory Commission issued a decision on March 4, 2021 on Preliminary Certification of JSC Georgian State Electrosystem as an ElectricityTransmission System Operator.
On March 26, 2021, the Energy Community stated its position on the decision taken by the Commission, according to which the Energy Community agrees to certify GSE as a transmission system operator if the specified conditions are met. Based on this, on April 1, 2021, the Georgian National Energy and Water Supply Regulatory Commission made a decision to certify GSE as a transmission system operator in accordance with the rules established by the legislation of Georgia and the legislation of the Energy Community.
In conformity with the requirements of the Law of Georgia on Energy and Water Supply, the Georgian National Energy and Water Supply Regulatory Commission shall at a later stage authorize a certified transmission system operator in accordance with the legislation by issuing a transmission license.
By Decision N14/3 of April 1, 2021, the Commission approved JSC Georgian State Electrosystem's request for certification as a transmission system operator in accordance with Georgian legislation and Energy Community law, on the condition that the requirements of Article 4, Paragraph 1 of the unbundling plan would be fulfilled by December 31, 2021. Due to non-compliance with this condition, in January 2022, the Commission initiated a re-certification procedure for JSC Georgian State Electrosystem and finally, by Decision N28/3 of July 7, 2022, the Commission made a final decision denying certification to JSC Georgian State Electrosystem.
In 2024, to meet the unbundling requirements, draft amendments to the Georgian Law on "State Property" and the Georgian Law on "Entrepreneurs" were developed and subsequently adopted by Parliament this year. These amendments make it possible to redistribute the management rights of enterprises carrying out energy activities in such a way that state bodies cannot simultaneously manage enterprises engaged in electricity transmission/distribution on one hand and generation/supply/trading activities on the other.
