Law of Georgia on Energy and Water Supply (No. 5646-RS of 2019)

This Law establishes the general legal framework for the electricity and natural gas sectors, encompassing activities such as production, transmission, distribution, supply, storage, and trade. The stated purpose of this legislation is to promote the creation, opening, development, and integration of transparent and competitive energy markets. Additionally, the law extends its regulatory scope to the water supply sector, creating a general legal framework for drinking water supply and wastewater services.
It governs the management, organization, monitoring, and supervision of the covered sectors. It sets specific criteria and procedures for system access, grid operations, tendering, cross-border trade, and the authorization of energy and water supply activities. The framework requires market participants to satisfy technical, economic, and financial conditions to operationalize these procedures effectively.
The Law outlines measures to maintain a secure level of supply necessary for the proper functioning of the electricity and natural gas sectors. It defines the conditions for imposing public service obligations related to security, service continuity, quality, pricing, and environmental protection. These obligations and general principles aim to protect the rights of end-consumers, ensure non-discriminatory market access, and maintain the independence of system operators from other commercial energy interests.
A mandatory authorization and licensing framework is established, requiring entities to obtain valid licenses from the national regulatory commission to execute core sector activities. It outlines the specific criteria that license applicants must fulfill to ensure compliance and safe operation within the market. Finally, the law explicitly exempts certain activities from its scope, such as the exploration and extraction of natural gas, specific commercial transit agreements, and small-scale or personal-use electricity generation.