summary of the case

Directive 2009/72/EC concerning common rules for the internal market in electricity was adapted by Ministerial Council Decision 2011/02/MC-EnC of 6 October 2011 and incorporated into the Energy Community acquis. Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC was incorporated in the Energy Community acquis by Decision 2011/02/MC-EnC of the Ministerial Council of the Energy Community of 6 October 2011. Both directives introduced the obligation to unbundle where energy supply and generation are separated from the operation of transmission networks. If a single company operates a transmission network and generates or sells energy at the same time, it may have an incentive to obstruct competitors' access to infrastructure. Unbundling must take place according to three models only, depending on the preferences of individual countries. Following the unbundling process, Contracting Parties also had to ensure that transmission system operators are designated and certified.

Georgia was required to implement and to comply with the provisions on TSO unbundling and certification by 30 December 2018 for the electricity sector and by 30 December 2020 for the gas sector. Despite repeated attempts, this has not been achieved so far. Consequently, the Secretariat is of the view that Georgia failed to comply with its obligations under the Energy Community Treaty related to unbundling and certification with regard to its electricity and gas transmission system operators, in particular with Articles 9 and 10 of Electricity Directive, as well as Articles 10 and 14(2) of the Gas Directive.

Directive 2009/72/EC concerning common rules for the internal market in electricity was adapted by Ministerial Council Decision 2011/02/MC-EnC of 6 October 2011 and incorporated into the Energy Community acquis. Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC was incorporated in the Energy Community acquis by Decision 2011/02/MC-EnC of the Ministerial Council of the Energy Community of 6 October 2011. Both directives introduced the obligation to unbundle where energy supply and generation are separated from the operation of transmission networks. If a single company operates a transmission network and generates or sells energy at the same time, it may have an incentive to obstruct competitors' access to infrastructure. Unbundling must take place according to three models only, depending on the preferences of individual countries. Following the unbundling process, Contracting Parties also had to ensure that transmission system operators are designated and certified.

Georgia was required to implement and to comply with the provisions on TSO unbundling and certification by 30 December 2018 for the electricity sector and by 30 December 2020 for the gas sector. Despite repeated attempts, this has not been achieved so far. Consequently, the Secretariat is of the view that Georgia failed to comply with its obligations under the Energy Community Treaty related to unbundling and certification with regard to its electricity and gas transmission system operators, in particular with Articles 9 and 10 of Electricity Directive, as well as Articles 10 and 14(2) of the Gas Directive.