High Voltage Connection Fee Methodology

The objectives of the Methodology include identifying parties to whom the High Voltage Connection Fee Methodology applies, establishing a set of base connection charge principles, describing the process of application for new connections or upgrades to existing supply arrangements, identifying the different costs to be recovered via connection charges, setting a standard methodology for determining connection charges, and providing a governance structure to deal with network connection matters. The Methodology covers the treatment and principles of charging new connections to the high voltage network, definitions of Direct Assets, New Infrastructure Assets, and Infrastructure Reinforcement Assets, sharing of costs of Direct Assets, New Infrastructure Assets, and Infrastructure Reinforcement Assets, criteria for connection charging, and methodology for connection charging. The Methodology also regulates tariff setting and application submission procedures, including procedures and methods for accounting and reporting, required documents for tariff setting, and tariff setting timeline and procedures. The document does not cover detailed technical matters related to technical standards of equipment, operation, and planning of new connections, and infrastructure reinforcement, which are covered in the Network Code and requirements of other technical codes and regulations in force. The Methodology is intended to provide a standardized approach to dealing with power network connections and associated connection charges, ensuring transparency and fairness in the charging process. The Methodology is applicable to various types of connections, including standard and individual connections, special connections, temporary connections, increase of the connection power, emergency connections, and connections for producers from renewable energy sources. The Methodology provides a framework for determining connection charges, taking into account the technical characteristics of the connection, the type and volume of works required to connect a facility to the high voltage networks, and the classification of connection assets. The Methodology is based on the principles of International Financial Reporting Standards (IFRS) and the requirements of the Georgian National Energy and Water Supply Regulatory Commission (GNERC). The Methodology is intended to be used by the Distribution System Operator (DSO) and the Transmission System Operator (TSO) in Georgia, as well as by other stakeholders involved in the power network connections and associated connection charges. The Methodology is divided into six chapters, including Executive Summary, Background, High Voltage Connection Fee Methodology, Regulatory Cost Base, Criteria for Connection Charging and Breakdown of Connection Charges, and Tariff Setting and Application Submission Procedures. Each chapter provides detailed information on the specific aspects of the Methodology, including the principles of charging new connections, definitions of Direct Assets, New Infrastructure Assets, and Infrastructure Reinforcement Assets, and the methodology for connection charging. The Methodology is intended to provide a standardized approach to dealing with power network connections and associated connection charges, ensuring transparency and fairness in the charging process. The Methodology is based on the principles of IFRS and the requirements of GNERC, and is applicable to various types of connections, including standard and individual connections, special connections, temporary connections, increase of the connection power, emergency connections, and connections for producers from renewable energy sources.