Law of Georgia on Electricity and Natural Gas (No. 816-IIS of 1997)

This Law regulates activities and relations of individual entrepreneurs, natural and legal persons in the areas of water supply, electric power system management, wholesale electricity (capacity) trading, power generation, transmission, dispatching, distribution, import, export and consumption, as well as in the areas of supply, import, export, transportation, distribution and consumption of natural gas. This Law ensures the functioning and development of water supply, electricity and natural gas sectors in compliance with the principles of a market-oriented economy. The purpose of the Law is to ensure the creation of markets for water supply, electricity and natural gas and tariff systems in Georgia by developing competition and using existing mechanisms for regulating a non-competitive market and on that basis, to accurately reflect in tariff systems those economically justifiable costs that have been incurred for water supply, power generation, transmission, dispatching, distribution, import, export and consumption, as well as for supply, import, export, transportation, distribution and consumption of natural gas; create the legal basis necessary for the supply of electricity, natural gas and water to all categories of consumers; encourage domestic and foreign investments in order to rehabilitate and develop the electricity, natural gas and water supply sectors; and support predominant use of local hydropower and other renewable, alternative and natural gas resources.