Governmental Authorities:

The natural gas market is regulated by the Georgian Law on Electricity and Natural Gas and determines responsibility of all the bodies involved.

This law shall regulate relations and activities of sole entrepreneurs, physical persons and legal entities in the areas of natural gas supply, import, export, transportation, distribution and consumption, and shall ensure functioning and development of natural gas sectors in accordance with market economy principles.

Market Players

Natural gas wholesale market is regulated by the Order (#114, 29/12/2006) of the Minister of Energy “On Approval of the Natural Gas Market Rules” (Annex 1).

The Rules determine technical, commercial and financial relations in the purchase and sale and transmission of natural gas, including reliability standards and the rules for preparing and implementing natural gas balances. The Rules regulate relations between natural gas suppliers, transmission and distribution licensees and direct consumers of natural gas.

The Rules are binding for all persons who purchase, sell, transport, supply, distribute and/or consume natural gas in the territory of Georgia.

The regulations defined in the Rules and contracts concluded in compliance with them are the basic legal documents for licensees, suppliers and direct consumers which establish their rights and obligations.

Transmission licensee’s obligations:

• Timely carry out the supplier's instructions on the supply, or termination or resumption of natural gas supply to certain persons;
• In the case of a shortage of natural gas to deliver natural gas primarily to those direct consumers that generate electricity using natural gas.

Supplier or natural gas sector licensee is authorized to terminate service in compliance with the legislation and the provisions of the Rules, if:

• the consumer fails to fulfil the obligations prescribed under legislation, the Rules and an agreement;
• a person's life, health or property is endangered; in this case, the natural gas supply shall be immediately terminated;
• safety requirements are violated and/or the use of gas devices poses risk of damage; in this case, the natural gas supply shall be immediately terminated;

Supplier is obliged to:

• Render services to all types of customer.
• Conclude a natural gas purchase agreement and ensure natural gas supply to a customer (under the Rules for Supply and Consumption of Natural Gas).

Distribution licensee is obliged:

• To render service to any supplier or retail customer (under the Rules for Supply and Consumption of Natural Gas).

Annex 1