The Electricity Market Operator’s functions are defined by the Law of Georgia on Electric Energy and Natural Gas and by the Electricity (Capacity) Market Rules, approved by the Georgia Energy Minister’s Order#77, dated August 30, 2006.

ESCO Functions are:

1. Sale and Purchase of Balancing Electricity (Capacity) (inter alia through forming medium and long-term contracts on import and export). For this reason the Electricity Market Operator shall:

  • Submit the Standard Provisions of Direct Contracts on Balancing Electricity trade to the Georgian National Energy and Water Regulatory Commission, forwarding it after approval to the Dispatch Licensee for registration;
  • Define the volume of Balancing Electricity by means of comparison of generated, supplied, imported, consumed and exported volumes, as well as compare the factual volumes recorded in the Power Receipt-Delivery Acts in accordance to the direct contracts, signed by the parties with the amounts set within a direct contract.
  • Calculate the Balancing Electricity price as per the Electricity (Capacity) Market Rules.
  • Set accounts (settlement) with Eligible Enterprises for Balancing Electricity purchased or sold by the Electricity Market Operator.
  • Enter into medium and long term contracts on electricity import and export (exchange) with relevant entities of foreign country. For this purpose, the Electricity Market Operator is entitled to sell and/or buy the imported and/or electricity subject to export through the direct contracts as well as using other scheme (Standard Provisions of Direct Contract) that is set under the Electricity (Capacity) Market Rules for the Balancing Electricity sale and purchase operations.

2. Trade with Guaranteed Capacity in accordance to the Law of Georgia on Electricity and Natural Gas and the Electricity (Capacity) Market Rules, inter alia but not limited to:

  • Submitting the Georgian National Energy and Water Supply Regulatory Commission for approval the Standard Conditions of Direct Contracts on purchase of Guaranteed Capacity from the Guaranteed Capacity sources and on sale of Guaranteed Capacity to the Guaranteed Capacity buyer Eligible Enterprises and forwarding it to the Dispatch Licensee after the approval. Submitting the Standard Conditions of Direct Contracts to the Dispatch Licensee for the registration. Billing for the Guaranteed Capacity Fee and making financial settlement with the Eligible Enterprises.

3. Set up and operate unified database on the wholesale trade including unified metering register, inter alia but not limited to:

  •  Set up and operate the unified database on metering points;
  •  Set up of the unified database of the meter readings in accordance to the Settlement periods;
  •  Collection and structure of all the necessary information on electricity generation capacities, substations and consumers.

4. Agree in advance the contract on operation in parallel regime formed by the Dispatch Licensee with relevant electric energy system entities of the neighboring countries of Georgia, perform monitoring and implement other rights envisaged in the legislation, with the aim of its due execution.

5. Inspect the meters used in the wholesale metering.

6. Define the volume and cost of electricity resulting from the over-normative loss and purchased by the relevant Eligible Enterprise, in the case of over-normative losses in the transmission grid, upon request of the interested party shall;

7. Support construction of new hydro power plants; namely: in case of reaching agreement between the Government of Georgia, Electricity Market Operator and relevant person, sign a contract with that newly constructed power plant (generation licensee and/or small capacity power plant) which generates the electricity (capacity), subject of full or partial compulsory purchase in accordance to the legislation in force. For the purpose of transparency and public access to the available information, the Electricity Market Operator publishes the following information in a public place (13.08.2010 N 46)

a) On volume of electricity purchased and sold per each reporting period, based on the direct contracts;

b) On quantity of Balancing Electricity, purchased and sold based on Standard Conditions of direct contract per each reporting period and weighted average prices; 

c) On average actual losses in a grid; d) On the price of Guaranteed Capacity, purchased and sold per each reporting period.