Qualified Enterprises

ELIGIBLE ENTREPRICES

The Eligible Enterprises as well as transmission and dispatch licensees are entitled to take part in the wholesale trade in cases established by relevant standard act, whereas only the Eligible Enterprises are authorized to participate in the wholesale trade of Guaranteed Capacity.

The wholesale trade participants are:

1. The Electricity Market Operator (ESCO);
2. The following Eligible Enterprises (according to the Electricity (Capacity) Market Rules, approved by the Georgian Energy Minister’s Order Νº77, dated August 30, 2006):

• Generation Licensees;
• Direct Consumers;
• Importers;
• Exporters;
• Wholesale Electricity Suppliers;
• Small Capacity Power Plants;
• Power plant owner individuals, during the trial run and/or complex examination period of the power plant
• Universal Service Supplier;
• Free Supplier;
• Electricity provider in the form of public service;
• Last Alternative Provider;
• Distribution Licensee, in the field of electricity procurement to cover losses in the distribution network;;

3. Transmission and Dispatch Licensees, in the part of power purchase, for the purpose of covering losses to guarantee the transit of electricity (capacity).

Description of Eligible Enterprises:

In order to take part in the wholesale trade of electricity, an enterprise shall meet the requirements of the Law of Georgia on Electricity and Natural Gas and the Electricity (Capacity) Market Rules, approved by the Georgian Energy Minister’s Order Νº77 (dated August 30, 2006). Namely, the mentioned entity should be:

Legal entity established by the Georgian Law on Entrepreneurs in one of the following organizational-legal forms (Joint Stock Company, Limited Liability Company, General Partnership, Limited Partnership, cooperative or individual entrepreneur), which represents:

• The Generation Licensee– the entity, which owns the power plant with the projected capacity above 13 MW, generates the electricity and possesses the generation license issued by the National Water and Energy Regulatory Commission

or

• The Distribution Licensee - the entity, which distributes (transits)  the electricity and possesses the distribution license, issued by the Georgian National Water and Energy Regulatory Commission

or

• The Direct Customer – The entity, which receives the electricity (capacity) from the generation, transmission or distribution licensee in the event that the rules and conditions established by the Electricity (Capacity) Market Rules are met. In accordance with the “Electricity (Capacity) Market Rules”, Power Purchaser has a right to become a direct consumer if power purchaser’s annual consumption is not less than 1 kWh.

or

• The Importer - The entity, which receives the electricity (capacity) from one or more delivery points outside Georgia and sells and/or consumes it.

or

• The Exporter - The entity, which sells the electricity (capacity) at the delivery point outside Georgia.

or

• Wholesale Electricity Supplier – enterprise, which supplies electricity wholesale supply activity in accordance with the Law of Georgia on “Electricity and Natural Gas” and “Electricity (Capacity) Market Rules”

or

• The Small Capacity Power Plant – the entity, which possesses not more than 13 MW projected capacity power plant and generates the electricity. According to the Law of Georgia on Electricity and Natural Gas, the activities of small capacity power plant are completely deregulated, meaning that the power plant has the right on activities without the need for Georgian National Energy and Water Regulatory Commission to issue the generation license and establish the tariff for it.”

or

• A power plant owner, during the period of trial startup and/or complex examination period aimed at running a power plant  – the power plant owner entity, which intends to conduct the trial startup and/or complex examination of the power plant in order to run it. The mentioned activity is not the subject to licensing. In the event that the Electricity Market Operator registers the power plant owner entity, this entity becomes an eligible enterprise for the trial startup and/or a complex examination, from the date of registration of this entity until its registration as a generation licensee or a small capacity power plant – eligible enterprise, but not more than 90 calendar days.
• Transmission and Dispatch Licensees also have right to participate in the wholesale trade of electricity, in the part of electricity purchase, aimed at covering losses, to guarantee the transit of electricity (capacity).

The entity (except the Electricity Market Operator) that meets the requirements established for the wholesale trade participants and intends to take part in the wholesale trade,  contacts the Electricity Market Operator for the registration.

An entity shall be registered as a wholesale trade participant separately per each activity.