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Georgian National Energy and Water Supply Regulatory Commission

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Georgian National Energy and Water Supply Regulatory Commission Georgian National Energy and Water Supply Regulatory Commission Report on Activities of 2015 1 Contents i. Main Directions and Results of the Commission’s Activities ........................................................................ 6 1. Electricity Sector ............................................................................................................................................ 8 1.1. Electricity Market ............................................................................................................................................. 8 1.1.1. Exiting Structure of the Electricity Market and its Participants.................................................................... 8 1.1.2 Key Features of the Market ....................................................................................................................... 10 1.2. Licensing and Control of Licensed Activities ................................................................................................ 16 1.2.1. License Applications and Ammendments to License Registry ................................................................... 16 1.2.2. Customer Service Quality ........................................................................................................................... 17 1.3. Losses in Transmission and Distribution Networks ....................................................................................... 22 1.4. Price Setting and Tariff Regulation ................................................................................................................ 24 1.3.1. Legal and Methodological Backgrounds .................................................................................................... 24 1.2.3. Existing Tariffs of the Sector ...................................................................................................................... 25 1.2.4. Analysis of Investment Projects .................................................................................................................. 25 1.5. Regulatory Frameworks Fostering Renewable Energy –“Net-Metering” ...................................................... 27 2. Natural Gas Sector ........................................................................................................................................ 30 2.1. Natural Gas Market ........................................................................................................................................ 30 2.1.1. Regulatory Framework ............................................................................................................................... 31 2.1.2. Market Structure and its Participants .......................................................................................................... 32 2.1.3. Market Monitoring ...................................................................................................................................... 34 2.2. Licensing and Control of License Activities .................................................................................................. 39 2.2.1. Natural Gas Transportation System and Transportation Licensee .............................................................. 39 2.2.2. License applications and amendment in license registry ............................................................................ 40 2.2.3 Reporting and Main Results of the Reporting year ..................................................................................... 41 2.2.4. Actual Losses in the Distribution Network ................................................................................................. 45 2.2.5. Quality of Gas ............................................................................................................................................. 45 2.3. Pricing and Tariff Regulation ......................................................................................................................... 46 2.3.1. Legal and Methodological Framework ....................................................................................................... 46 2.3.2. Existing Tariffs of the Sector ...................................................................................................................... 47 2.3.3. Analysis of Investment Projects .................................................................................................................. 47 3. Water Supply Sector ..................................................................................................................................... 50 3.1. Amendments Introduced in 2015 ................................................................................................................... 50 3.2. Regulatory Frameworks ................................................................................................................................. 50 3.3. General Overview of the Sector ..................................................................................................................... 51 3.4. Proper Functioning and Reliability of Water Supply Systems ....................................................................... 58 2 3.5. Licensing and Control of Licensed Activities ................................................................................................ 61 3.5.1. License Applications and Ammendments To License Registry ................................................................. 62 3.5.2. Control of Licensed Activities .................................................................................................................... 62 3.6. Price Setting and Tariff Regulation ................................................................................................................ 63 3.6.1. Legal and Methodological Backgrounds .................................................................................................... 63 3.6.2. Existing Tariffs of the Sector ...................................................................................................................... 63 3.6.3. Analysis of Investment Projects .................................................................................................................. 63 4. Dispute Settlement ........................................................................................................................................ 67 4.1. Overview of the Dispute Settlement Regulatory Framework ........................................................................ 67 4.2. Electricity Sector ............................................................................................................................................ 68 4.3. Natural Gas Sector ......................................................................................................................................... 69 4.4. Water Supply Sector....................................................................................................................................... 71 5. International Relations .................................................................................................................................. 72 5.1. Relations with International Partner Organizations ....................................................................................... 72 5.2. Relations with Energy and Water Supply Regulatory Authorities of Foreign Countries .............................. 73 5.3. Completed and Ongoing International Projects ............................................................................................. 74 6. Public Relations ............................................................................................................................................ 75 7. Annexes ........................................................................................................................................................ 77 Annex №1 – List of Licensees in the Electricity Sector ....................................................................................... 77 Annex №2 – Customer Quantity within the Electricity Sector in 2010-2015 ..................................................... 78 Annex №3 – Number of Persons Employed in the Electricity Sector in 2010-2015 ........................................... 79 Annex №4 – Length of Electricity Transmission Lines (km) ............................................................................... 79 Annex №5 – System Peak Loads 2006-2015 ....................................................................................................... 80 Annex №6 – State of Metering in Distribution Companies by January 1, 2016 .................................................. 80 Annex №7 – Map of Electricity Transmission Network of Georgia in 2015 ....................................................... 81 Annex №8 – Electricity Balance of Georgia in 2009-2015 .................................................................................. 82 Annex №9 – Existing Tariffs of the Electricity Sector ......................................................................................... 85 Annex №10 – Participants of Natural Gas Sector ................................................................................................ 86 Annex №11 - The Number of Employees at Natural Gas Licensees.................................................................... 87 Annex №12- The Amount of
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