Draft Natural Gas Market Operator Service Tariff Methodology

The program aims to support the development of a competitive electricity and natural gas market in Georgia, which will improve the country's security of supply. The methodology is designed to set out a framework for determining service tariffs for the Natural Gas Market Operator (NGMO) in Georgia. The NGMO is responsible for organizing the day-ahead natural gas market, trade in natural gas, and its connection and integration with other organized natural gas markets. The methodology covers the legal and regulatory framework, definition of NGMO services, cost allocation, and tariffs calculation. The document is drafted pursuant to the draft Law of Georgia on Energy, Article 137 – Organization of the Natural Gas Market and Article 138 Tasks of the Natural Gas Market Operator. It takes into consideration and obeys the requirements under the Law of Georgia on Energy, Operational Rules for Natural Gas Supply by Universal Service Supplier, Natural Gas Market Rules, Network Rules, Rules on Commercial Service Quality, Natural Gas / Capacity Supply and Consumption Rules, and General Supply Conditions. The methodology sets out a clear process for reviewing and adjusting the NGMO services tariffs. It defines the terms used in the methodology, including business day, distribution system operator, and natural gas market. The document also provides a list of acronyms used in the methodology, including BM (Balancing Market), BRP (Balancing Responsible Party), CMLC (Centralized Market for Large Customers), and NGMO (Natural Gas Market Operator). The purpose of this document is to create a methodology for calculating service tariffs from the NGMO. The cost of administering and operating the Natural Gas Market in Georgia shall be recovered by the Market Operator through tariffs imposed on all Natural Gas Market Participants or Natural Gas Market transactions, provided such tariffs shall be filed by the Market Operator with the GNERC for approval, consistent with the Law of Georgia on Energy. The methodology is consistent with the draft Natural Gas Grid Code developed by US National Association of Regulatory Utility Commissioners (NARUC) financed USAID and the draft Energy Law under review by the Ministry of Economy and Sustainable Development of Georgia (MoESD). The document must be revised whenever the New Law for Energy has been adopted by the Parliament of Georgia and the Natural Gas Market Rules are changed. The methodology covers four main areas: legal and regulatory framework, definition of NGMO services, cost allocation, and tariffs calculation. It provides a detailed framework for determining service tariffs for the NGMO, which will ensure fair and transparent tariffs for the natural gas market in Georgia.