Georgian National Energy and Water Supply. Regulatory Commission. Resolution #23

Transcription

1 (Georgian Legal Bulletin III, #142, Art.1405) Registered at the Ministry of Justice of Georgia Registration code Georgian National Energy and Water Supply Regulatory Commission Resolution #23 Year 2008 September 18 Town of Kutaisi On Approval of Rules of Licensing and Activity Control in the Electricity, Natural Gas and Water Sector According to the Article 4, item 4 and Article 5 of the Law of Georgia On Electricity and Natural Gas, the Commission resolves: 1. Rules of Activity Control in the Electricity, Natural Gas and Water Sector be approved (Attachment 1) 2. Licensing Rules be approved (Attachment 2) 3. Form and description of the licensing certificate to be issued in the Electricity and Natural Gas Sector be approved by the Georgian National Energy and Water Regulatory Commission (Attachment 3) 4. Unusable accurate registration forms writing off be approved (Attachment 4) 5. Upon enactment of this Resolution, GNERC Resolution #33 of August 23, 1999 (Georgian Legal Bulletin III , #41 (48), Article 737) on Rules of Licensing in the Electricity and Natural Gas Sector be void 6. Resolution shall become effective upon publication G. Chalagashvili Chairman

2 Attachment 1 Rules of Licensing and Activity Control in the Electricity, Natural Gas and Water Sector Article 1 General Provisions 1. Rules of Licensing and Activity Control in the Electricity, Natural Gas and Water Sector (hereinafter Rules) establish the essential requirements that are obligatory for each person (hereinafter Entrepreneur) regardless its organizational legal form), accomplishing such activity in the electricity, natural gas and water sector determined by the Georgian Law on Electricity and Natural Gas that commensurate with the relevant Law is not subject to licensing. Rules also establish conditions and procedures of taking control of the relevant activity 2. Entrepreneur shall ensure duly accomplishment of the conditions determined by these Rules and current legislation. 3. Control of the activity determined by the Georgian Law on Electricity and Natural Gas, accomplished in the electricity, natural gas and water sector is assumed by the Georgian National Energy and Water Regulatory Commission(hereinafter Commission). The Commission, within its competence, ensures control of financial-economic activity and obligations of the Entrepreneur, ascertainment of compliance of the Entrepreneur s activity with the legislation, disclosure of delinquency in the Entrepreneur s activity and taking measures set by the legislation. 4. For the purpose of regulation and ensuring the accomplishment of the main principles of the activity in the Electricity, Natural Gas and Water Sector, Commission issues legal acts, commensurate with the laws and bylaws. Requirements of the Commission and legal acts issued by the Commission are mandatory for each person accomplishing activity determined by the Georgian Law on Electricity and Natural Gas in the electricity, natural gas and water sector 5. The terms used in this Rules have the same meaning as in Georgian Laws On Electricity and Natural Gas. and On Control of Entrepreneurial Activity Article 2 Requirements and Conditions 1. Entrepreneur shall meet the requirements envisaged by the Georgian Law On Electricity and Natural Gas, legal acts issued based on the above Law, including resolutions and decrees, rules and other requirements of the Commission. Violation of these requirements shall cause calling to liability, envisaged by the law. 2. Entrepreneur shall conduct activity in the electricity, natural gas and water sector commensurate with the Georgian Law On Electricity and Natural Gas, legal acts issued based on the above Law, including resolutions and decrees passed by the Commission. Entrepreneur shall also:

3 a. maintain its production tools in appropriate state and meet the technical norms and conditions set by the legislation; b. meter the amount of electricity, natural gas or drinking water flowed through its facilities c. timely pay the regulation fee set by the Commission 3. If a person carries out other entrepreneurial activity, he/she shall accomplish separately the dealings related to such activity, including calculation of income, expenses, and financial activities and submit the information to the Commission separately according to each activity, in accordance with the relevant activity, determined by the Georgian Law On Electricity and Natural Gas Article 3 Reporting 1. Once a year, from April 1 till May 1 Entrepreneur shall submit to the Commission a report on fulfillment of service conditions that shall include: a. Report on previous year activity, where: a.a Financial report shall be approved by the auditor; a.b Technical report shall be approved by the person with the relevant competence and authority(in case of ownership of technical facilities); b. Work Plan for the next year; c. Information on the measures taken and to be taken in future from the standpoint of service quality and improvement of service conditions d. In case of ownership of technical facilities d.a Report on emergencies and measures for dealing with them d.b Relevant selective act envisaged under the Georgian legislation related to the environmental impact (if any) e. Signed contacts (upon Commission s request) f. Other information as needed by the Commission 2. Report to be submitted to the Commission along with the information determined in the Item 3 of this Article shall include the following information: a. Report on Investment Program for small power plants and the state of execution of such program. In addition, information on projected and actual water discharge (m3/kwh) of water resources. b. For natural gas suppliers - information on volumes, prices, terms, natural gas caloric value envisaged under natural gas purchase agreements and information on execution of such agreements (among them agreements on natural gas purchase by suppliers and then sale to other suppliers or customers) c. For drinking water suppliers - investment program and report on its implementation state, information on water quality control of water intake bodies and springs in the water supply system, information on protection of water supply bodies and measures for preventing water

4 from contamination, in addition, information on waste water discharge system and sewage treatment facilities and testing of meters used for metering of drinking water supply. Article 4 Control on Complying with Certain Conditions 1. Control of the fulfillment of the Georgian Law On Electricity and Natural Gas and legal acts issued based on the above Law by the entrepreneur is assumed by the Commission. 2. For the purposes of these Rules, Control of the fulfillment of the Georgian Law On Electricity and Natural Gas and legal acts issued based on the above Law is performed by: a. Reporting on complying with activity-service conditions; b. Selective audit 3. Other state body may make a request to the Commission for inspection of the entrepreneur s activity in case of apparent reason. 4. Relevant structural unit of the Commission assumes control of timely presentation of report on fulfillment of service terms and conditions by entrepreneur. 5. Commission is authorized to request submission or correction of report on fulfillment of service terms and conditions, provision of the additional information. If entrepreneur fails to meet duly the Commission s request and/or fails to submit the requested information within the set terms, the Commission is authorized to take measures set by the law. 6. Prior to July 1 of each year relevant structural unit of the Commission is authorized to submit to the Commission the list of entrepreneurs who timely submitted or failed to submit the complete report on fulfillment of service terms and conditions and/or submitted it incompletely (indicating the reasons for not offering the information) 7. Audit of the entrepreneur may be conducted based on the Commission s resolution and according to such resolution the Commission, based on the agreement on inspection of service conditions, is authorized to carry out the audit by authorized person(s), identified by the Commission s resolution. 8. Under Commission s resolution on selective audit, the following information should be determined : a. Purpose, date and period of audit b. Auditor or group of auditors (indicating the head of the group) c. Authorized person(s) preparing a report on administrative infringement d. Other persons as required by the Commission 9. Resolution of the Commission on audit and the attached list of rights and obligations of entrepreneur shall be presented to entrepreneur upon conducting audit. 10. Auditor or group of auditors shall:

5 a. Conduct audit commensurate with the resolution of the Commission on audit; b. Submit to the Commission audit report (certificate), after completion of audit c. Immediately draw up administrative legal act in case of preventing audit, refusing to provide information or other violations; d. Provide written notice to the Commission on elimination of violations within set terms e. Keep administrative proceedings and conduct other activities envisaged by Law unless the decision that initiates interruption of administrative proceedings on the given issue is made. 11. In case of approval by the Commission of the studied and revealed cases identified in the audit report (certificate), the given information shall be included in service condition audit register. 12. It is prohibited to conduct repeated audit of the same subject. Article 5 Responsibility for Violation of Conditions Violation of the conditions, set by the Rules, cause responsibility set by Law in the form of penalty charge. The amount of the charge is defined by relevant legal acts. Commission shall offer entrepreneur reasonable time period for elimination of violations

6 Rules of Licensing Article 1 General provisions Attachment 2 1. Rules of Licensing in the Electricity and Natural Gas Sector (hereinafter Rules of Licensing) set the obligatory requirements that are mandatory for the license applicant and license holder entrepreneurs in the electricity and natural gas sector, regardless their organizational-legal form. 2. Rules of Licensing determine the rules of granting, revising, canceling and ensuring execution of licenses. 3. Control of granting, revising, canceling of licenses and identifying licensing conditions and controlling their execution in the electricity and natural gas sector is assumed by the Georgian National Energy and Water Regulatory Commission (hereinafter Commission). 4. It is illegal to conduct the activity in the electricity and natural gas sector subject to licensing without the relevant license, issued by the Commission. It is prohibited to hand down or otherwise hand over the license to any other person. 5. Purpose and main principles of regulation by the licenses issued by the Commission are as follows: a. equality of parties before the law; b. ensuring safety and security of human life and health and his home and cultural environment; c. ensuring safety of the State and the public 6. For the purposes of regulation of licensing activities and support in execution of main principles of the activities envisaged by license, Commission issues legal acts commensurate with Georgian Laws on Electricity and Natural Gas and on Licenses and Permits, and other legislative acts and normative by laws. 7. The terms used in this Rules have the same meaning as in Georgian Laws On Electricity and Natural Gas. and On Licenses and Permits, 8. Granting of preliminary license is performed based on the rules and conditions determined by the Georgian Law on State Support of Investments and legal acts issued based on this Law. Article 2. Types of Licenses 1. Commission issues licenses for the following types of activities in the electricity and natural gas sector. a, Electricity generation license; b. Electricity transmission license c. Electricity dispatch license d. Electricity distribution license e. Natural Gas transportation license f. Natural Gas distribution license

7 2. License shall be granted for an indefinite period of time 3. Activity envisaged under this Article is not subject to licensing in the cases defined by the Georgian Law on Electricity and Natural Gas : a. if a relevant legal act is issued based on the Article 2 sub item z 1 and z 2 of the given Law ; b. In the case envisaged by Article 24 Item 3 of the given Law. Article 3. License Certificate, its utilization and rule of registration-reporting 1. License Certificate issued by the Commission is a state mark paper of special quality with the marks to protect from falsification, including tracking series and registration number 2. License Certificate shall be filled out in Georgian 3. License Certificate shall specify: a. Identity of license holder; b. Type of service defined in the License application, location of the assets for providing services and service territory, c. Date of issuing and effective period of license, terms of revising and canceling of license 4. Attachment to the license which includes the list of licensee conditions is the Integral part of a license certificate and certificate is deemed to be invalid if lacking such attachment 5. Use and registration/reporting of license is assumed by the Commission commensurate with the Georgian Law on Accurate Forms of Registration and these Rules 6. Purchase of license certificate is independently executed by the Commission 7. License certificate is kept with license holder 8. License certificate is filled out based on the Commission Resolution and is grated to license holder or its representative authority remains within the Commission. 9. License receiver certifies the fact of receipt of license certificate by signature. 10. Copy of license certificate and attachment to license is kept in the Commission. Article 4 Loss or Ruin of the License Certificate 1. In the event of the loss or ruin of a license certificate, the license holder (or his representative) may apply in written to the license issuer to grant a substitute license certificate. 2. Within two days after the receipt of such an application, the license issuer shall grant a substitute certificate, enter an appropriate record to the license registry.

8 3. The substitute license certificate shall be as valid as the original one. 4. The amount of fee payable for the substitute certificate is defined in the Law on License and Permit Fees. Article 5 Grounds for Acquiring a License 1. To acquire a license, a license applicant is authorized to present to the license issuer a written application commensurate with the form comprised by the Commission. In addition license applicant shall fully comprehensively introduce the issues represented in the application form comprised by the Commission. Submission of the application for acquiring a license is performed according to the rule set in the Chapter VI of the General Administrative Code of Georgia 2. Any application for the license shall meet the requirements specified in the Article 78 of the General Administrative Code; it shall also contain type of activity for licensing and attached list of documents 3. The following information shall be attached to the application: a. Extract from State Register for legal person or individual entrepreneur; b. List of fixed assets of the enterprise and audit report c. Document certifying ownership of production assets, extract from State Register, cadastral map d. Relevant State Inspection of Technical Supervision and/or Architectural/Construction Inspection report certifying compliance of technical condition of the above production assets with current state standards and norms. e. Technical conditions of connection to network: e.a Technical conditions issued by transmission license holder for connection to the Georgian electricity transmission network (excluding electricity dispatch license) and in case of connection of electricity production assets to the distribution network, technical condition of connection to the network, issued by relevant distribution company. e.b For connection to natural gas network - technical condition of connection to the network, issued by relevant natural gas transportation or distribution license holder f. Electricity or natural gas network scheme (excluding electricity dispatch license) 4. If current legislation does not envisage issuing of the report by State Inspection of Technical Supervision and/or Architectural/Construction Inspection, defined under item 3 sub item d of this Article, the report of other legal person of relevant competence or authority, certifying compliance of technical condition of the production assets with relevant standards shall be attached to the application;

9 5. In case of ascertainment by other administrative bodies of actual satisfactory circumstances of license conditions, rules set under Article 9 of the Georgian Law on Licenses and Permits are applied Article 6. Rule of Issuing License 1. Proceedings related to granting, revising, suspension, renewal or cancellation of license by the Commission are conducted by simple rule of administrative proceedings defined by Georgian Law on Licenses and Permute and general Administrative Code of Georgia and by the rule of public administrative proceedings prescribed in Chapter IX of the General Administrative Code. 2. Notice or some other public information shall be places in the easily accessible place or shall be uploaded on the Commission s web-page 3. A decision on the granting, revising, suspension, renewal or cancellation of license shall be deemed an administrative act and shall meet the general requirements to the administrative acts set forth in Chapter IV of the General Administrative Code 4. The license issuer, within the period of three days, shall review the application and attached documents and check whether it is made in compliance with the requirements of Article 5 of this Law. 5. After acceptance of the application the Commission shall make a public announcement about the documents being presented for public review. 6. Within twenty days after presenting the documents for public review any person is entitled to present written opinion 7. The hearing of a license case shall be held within seven days after the presenting of a written opinion. 8. The Commission shall make decision on granting or withholding of a license. In case if decision is made to withhold the licenses the Commission shall immediately give the license applicant a reasonable written notice about rejection. 9. In case of making the decision on granting license, prior to acquiring license certificate license applicant is entitled to implement activity envisaged by the license based on the above decision, 10. Commission shall make decision on granting license within 30 days after receipt of the application. License shall be deemed granted if within the given period the Commission fails to make decision on granting or withholding license. 11. License applicant is entitled to conduct licensed activity only after acquiring license certificate, if the Commission fails to make decision of granting or withholding license within the period set by Law. 12. License applicant is entitled to require license certificate after expiration of set period for license granting. The Commission shall immediately issue license certificate. Article 7. License Requirements and Conditions

10 1. Based on the license conditions and for the purpose of meeting given conditions, licensee shall perform activity commensurate with the Georgian Law on Electricity and Natural Gas legal acts issued according to this Law, including resolutions and decrees adopted by the Commission. Based on the license conditions licensee is also obliged to: a. Keep production assets in due condition and comply with the technical norms and conditions set under current legislation and also comply with the terms and conditions required for obtaining a license; b. Measure the quantity of electricity or natural gas flowing through their facilities by using appropriate metering equipment c. Timely pay the Regulatory Fees set by the Commission; d. Comply with all other terms and conditions of the License 2. Licensee shall meet terms and conditions envisaged by Chapter 6 of the Georgian Law on Electricity and Natural Gas and also legal acts issued according to this Law, among them rues of licensing and license conditions, Violation of the above will call for liability envisaged by Georgian Law on Licenses and Permits and Article 9 of this Rules; 3. Licensees, Importers, Exporters and Supplier shall operate at least cost principle and comply with the following license condition: a. For electricity distribution licensee ensure access of small Hydro power plants to the distribution network and consequently ensure signing contacts on pass through upon request and execution of a contact between small hydro power plant and retail customer, commensurate with the terms and conditions set by legislation. b. For natural gas distribution licensee ensure creation of competitive environment for natural gas supply through natural gas distribution network and execution of a contact between supplier and retail customer commensurate with the terms and conditions set by legislation. Natural gas distribution licensee supplying natural gas to the customers and selling natural gas to the customers connected to the distribution network, owned by such licensees, are fully liable for uninterrupted supply of natural gas to the customers 4. If a person owns more than one license or accomplishes some other entrepreneurial activity along with the licensing activity, he/she shall accomplish separately the dealings related to such activity, including calculation of income, expenses, and financial activities and submit the information to the Commission separately according to each activity. 5. Once a year, from April 1 till May 1 Entrepreneur shall submit to the Commission report on fulfillment of activity service conditions that shall include: g. Report on previous year activity where: a.a Financial report shall be approved by the auditor; a.b Technical report shall be approved by the person with the relevant competence and authority(in case of ownership of technical facilities);

11 h. Annual work plan for the following year; and; i. Report on investment programs and their implementation j. Information on the measures taken and to be taken in future from the standpoint of service quality and improvement of service conditions k. Report on emergencies and measures for dealing with them l. Relevant selective act envisaged under the Georgian legislation related to the environmental impact (if any) m. Signed contacts (upon Commission s request) n. Other information as requested by the Commission 6. Report to be submitted to the Commission along with the information determined in the Item 3 of this Article shall include additional information a. For production licensee - information on projected and actual water discharge (m3/kwh) of water resources; for thermal power plants licensee shall present specific consumption of projected conditional fuel (gr.cf/kwh) for electricity generation, specific consumption of actual conditional fuel (grcf/kwh) for electricity generation, and agreements on fuel purchase. (pointing out caloric value of relevant fuel (kcal/m3; kj/.kg) b. For transmission licensee information on inspection of meters used in electricity wholesale metering c. For dispatch licensee - information on volume, prices, conditions envisaged in the direct agreements, plus agreements on export, import, provision of system reserve of capacity and in addition information on implementation of such agreement, volumes of ready to use or used (loaded) system reserve of capacity (pointing out relevant sources), meeting the regimes of electricity supply in regular and emergency situations d..for electricity distribution licensee - information on measures taken for improvement of energy efficiency, assets, created by connection of new customers to distribution network and book value of such assets e. For natural gas distribution licensee - information on inspection of compliance of operation and passport data of consumers gas devices and safety norms through available agreements on natural gas distribution and information on volumes, prices, terms, natural gas caloric value envisaged under natural gas purchase agreements and information on execution of such agreements. f. For natural gas transportation licensee - information on volumes, prices, terms, natural gas caloric value envisaged under natural gas transportation agreements and execution of such agreements 7. Entrepreneur with license being granted during 6 months prior to settlement period, is entitled to be exempt from submission of the information set forth in the Items 3 and 4 of this Article prior to the following settlement period. 8. Licensees shall be prohibited to reduce or increase services stipulated in the License without the Commission s preliminary consent, except for termination

12 of reduction of services due to non payment by the customer and/or for technical or safety reasons. In any other case, for termination or reduction of services the Licensee shall submit an application to the Commission. The Licensee shall turn in the License upon receiving the Commission s consent; 9. No Licensee shall be required by the terms of its License, by its tariff, or otherwise to continue supplying services in any case where another Licensee, a Direct Consumer, or any other Legal Person or individual has failed to meet its obligations under a contract 10. Rules of Licensing and requirements envisaged under the Article 6 of Georgian Law on Electricity and Natural Gas are integral part of the attachment to a license. Some requirements set forth in the attachment to a license may differ owing to licensed activity. Article 8 Control of Execution of License Conditions 1. Control of execution of license conditions by licensee according to the rule set by the law is assumed by the Commission 2. Control of execution of license conditions is conducted by a. Reporting on complying with activity-service conditions; b. Selective audit 3. Relevant structural unit of the Commission assumes control of timely presentation to the commission of report on control of meeting of license conditions by licensee. 4. Commission is authorized to request submission or correction of report on meeting license conditions, provision of the additional information. If entrepreneur fails to duly satisfy the Commission s request and/or fails to submit the requested information within the set terms, the Commission is authorized to take measures set by Law. 5. Prior to July 1 of each year relevant structural unit of the Commission is authorized to submit to the Commission the list of entrepreneurs who timely submitted or fail to submit the complete report on fulfillment of service terms and conditions and/or submitted it incompletely (indicating the reasons for not offering the information) 6. Selective audit of licensee may be conducted based on the Commission s resolution and according to such resolution the Commission is authorized, based on the agreement on inspection of service conditions, to carry out the audit by authorized person(s), defined by the Commission s resolution. 7. Under Commission s resolution on selective audit, the following information should be determined : a. Purpose, date and period of audit b. Auditor or group of auditors (indicating the head of the group) c. Authorized person(s) preparing a report on administrative infringement d. Other persons as required by the Commission

13 8. Resolution of the Commission on audit shall be presented to entrepreneur upon conducting audit 9. Auditor or group of auditors shall: a. Conduct audit commensurate with the resolution of the Commission on audit; b. Submit to the Commission audit report (certificate), after completion of audit c. Immediately draw up administrative legal act in case of preventing audit, failing to provide information or other violations; d. Provide written notice to the Commission on elimination of violations within set terms e. Keep administrative proceedings and conduct other activities envisaged by Law unless the decision, that initiates interruption of administrative proceedings on the given issue, is made. 10. In case of approval by the Commission of the studied and revealed cases identified in the audit report (certificate), the given information shall be included in licensee audit register. Article 9. Responsibility for Violation of License Conditions 1. Violation of the conditions set by the Rules causes responsibility set by Law in the form of penalty charge. The amount of the charge is defined by relevant legal acts. The Commission shall provide licensee with reasonable time period for elimination of violation.. 2. If the licensee fails to meet the Commissions requirements within the period, set by the Commission, penalty charge shall be tripled and the Commission shall provide licensee with reasonable time period and conditions for meeting the requirements. 3. If licensee fails to meet the license conditions prior to expiration of set period from imposing of tripled penalty charge, the penalty charge shall be tripled. 4. Despite the imposition of responsibility envisaged by the Items 1,2,and 3 of this Article, if licensee fails to meet the license conditions (within the relevant time period), the Commission makes decision on cancellation of license; 5. Despite cancellation of the license, the Commission may grant a right to continue licensed activity if cancellation of license may do more harm than continuation of licensed activity. 6. According to the Item 5 of this Article, in case of obtaining the right to continue the licensed activity, licensee shall comply with the additional license conditions within the reasonable terms, set by the Commission. 7. If subsequent to applying by the Commission terms and procedures envisaged under Items 5 and 6 of the Article,.licensee fails to meet the requested conditions, the Commission is entitled, in the name and at the expense of licensee, to ensure fulfillment of license conditions by itself or by the third person, among them by the special manager.

14 8. Notwithstanding imposition of penalty on a licensee, Items 5, 6 and 7 of this Article may be applied if the Commission is aware that the penalty, imposed on the licensee is incapable of ensuring fulfillment of license conditions. Commission shall justify such decision. cannot 9. Pursuant to the specific circumstances, responsibility for violation of license conditions, canceling the license, appointment of special manager and/or measures of ensuring fulfillment of other licensed activity related license conditions are performed commensurate with the rule set by the Georgian Law on Licenses and Permits and Georgian legislation. 10. Rights and obligations of special manager are determined by the rule set by the Georgian Law on Licenses and Permits. Issues related to authority, activity and payment of special manager may also be regulated by the special administrative-legal act of the Commission. Article 10. General Conditions for Granting, Withholding and Canceling Licenses 1. The Commission shall issue licenses only to those entrepreneurs that satisfy the conditions, stipulated in the current legislation and Rules of Licensing. 2. The Commission will not grant a license if: a. The application and attached documents presented by the license applicant do not meet the license conditions, set by the Rules of Licensing and legislation and license applicant fails to correct them in the time limit, set by the Commission b. The license applicant fails to meet the license conditions; c. The license applicant is applying for the license similar to the one which has been cancelled by the legal, effective court indictment. 3. In case of cancellation of a license, the Commission shall immediately send a written notification to a license applicant about such cancellation. 4. Failure to meet conditions and requirements, envisaged for license granting represents the condition for license cancellation. Article 11. Revising and Canceling of Licenses 1. A License is modified pursuant to its terms and conditions or revoked for noncompliance with its terms and conditions. In any other cases the Commission may modify or revoke a License only with the prior consent of the Licensee; while modifying a License the Commission may require the Licensee to comply with different, or more stringent requirements than the requirements included in any prior License. 2. The Commission makes decision on modification and cancellation of a license commensurate with the Article 22 of the Georgian Law on Licenses and Permits and Rules of Licensing. 3. In case of filing administrative complaint or claim, making the decision on granting, withholding of canceling of license shall not be suspended if not otherwise stipulated by the Commission or /and court.

15 Article 12. License Registry 1. The Commission maintains constant license registry, where information about granting, amending, and cancellation of a license shall be entered within two days after making a decision. 2. Within 10 days after making a decision, publish an information about the granting, revising, suspension, renewal or cancellation of license, except any secret information as defined in the General Administrative Code of Georgia, in the Georgian Legislative Herald gazette; 3. Into the in-house registry shall be entered: a. The information about a license holder: (firm title, organizational-legal form, state registration records address); b. Type of license; c. Number and date of license certificate. Article 13. Writing off of Unusable License Certificate 1. Unusable license certificate may be written off due to: a. mistake made in the course of filling in a certificate b. physical damage of license certificate 2. Writing off of unusable license certificate is performed commensurate with writing off acts; 3. Utilization of unusable license certificate is conducted commensurate with the existing legislation.

16 Attachment #3 Form and Description of License Certificate to be Issued by the Georgian National Energy and Water Regulatory Commission in the Electricity, Natural Gas and Water Sector 1. License Certificate (hereinafter Certificate) to be Issued by the Georgian National Energy and Water Regulatory Commission in the electricity, natural gas and water sector represents one page, two-sided printing, light-colored, A4 format coated paper. 2. On the front page of the Certificate are imprinted: Minor State Emblem of Georgia, inscription Georgian National Energy and Water Regulatory Commission and data record on issued license: registration number and series, date of license issuance, name of license holder, licensed activity, legal grounds for license issuance, signature of the Chairman and Commission members of the Georgian National Energy and Water Regulatory Commission, stamp place, (pattern is attached to the document). Name of printery, manufacture the certificate form, client, name of the Georgian National Energy and Water Regulatory Commission, registration number assigned by the Ministry of Justice and abbreviation of the Ministry of Finance MoF are marked in the lower right corner. 3. No records shall be made on the reverse side of the certificate; 4. Certificate possesses the following protective marks: a. relief protective network; b. exclusive watermarks; c. invisible record in the middle of the certificate Georgian National Energy and Water Regulatory Commission; License Certificate ; d. typographically made penetrated watermark Minor State Emblem of Georgian Georgian National Energy and Water Supply Regulatory Commission License Series Registration Number Name of the owner Commensurate with the Georgian Law on Electricity and Natural Gas is authorized to carry out

17 License conditions are specified in the attachment License lacking an attachment is invalid License shall be granted for an indefinite period of time Resolution # year Chairman Commissioner Commissioner Date of issuance Client: Georgian National Energy and Water Supply Regulatory Commission Produced by: CGA registration #

18 Attachment #4 Accurate Registration Form Writing off Act # 200 N Type of Accurate Registration Form Quantity Printer number of Accurate Registration Form Registration number of Accurate Registration Form Hereby the Commission by signature confirms validity of writing off of unusable accurate registration form samples, represented commensurate with the Act Chairman of the Expert Commission: Commissioners:: Secretary:: Authorized person for maintenance keeping of Accurate Registration Forms: