Energy companies won’t be able to sell its shares without GNERC
By Natalia Kochiashvili
Friday, July 17
At the plenary session of the parliament, the deputies approved in the first reading the bill, according to which, the companies in the energy sector will be obliged to get the consent of the Energy Regulatory Commission before the sale of the shares. This refers to changing the share of companies by at least 5%. The bill is being considered in an expedited manner in the parliament and 2 more hearings are needed. At the first hearing, 81 MPs supported, none against.
The Chairman of the Energy and Water Regulatory Commission (GNERC), Davit Narmania said that the purpose of the bill is to inform the commission about the change of shares so that the results of the transaction are not reflected on the customer. The company is looking at profits from the imposed tariffs, and according to the GNERC, such a deal may have burdened the citizens.
According to Narmania, the main essence of the amendments to the Law on Energy and Water Supply is to ensure openness and transparency, when more than 5% of the shares in the energy system are sold.
The opposition suspects that the introduction of such regulations will reduce investment in the market and interfere with property rights.
At the committee meeting, Narmania said the bill should be passed in an expedited manner because small gas distribution companies are going to sell their shares and it is important to meet the law in time.
“Openness and transparency will be ensured on the one hand and the regulatory commission will be informed on the other hand. This will be a certain insurance mechanism to prevent unwanted occupant countries or others from entering the energy system, which may harm the country's energy security interests. In addition, it will hinder the delivery of quality and normal services,” Narmania said.
Georgian Energy and Water Regulatory Commission is an independent legal entity under public law under Georgian law. The commission is not subject to anyone and one of its main functions is to set consumer tariffs. It can satisfy or refuse a water, electricity or gas distribution company to increase the fee. The decision of the commission may be appealed in court.
“The draft law on energy and water supply is necessary in order to see the management of our critical infrastructure and make this issue more transparent,” said Natia Turnava, the Minister of Economy and Sustainable Development.
The Minister is confident that the right balance will be struck between business interests and the interests of the state.
