Uniform System of Accounting for Georgian Regulated Gas Sector

This system is based on international best practices and has been implemented in the United States, Canada, Asia, and some European Union countries. The USoA is a unified accounting system for rate-regulated entities, including gas sector companies. The USoA was developed for the electricity sector of Georgia through the Hydropower Investment Promotion Project (March 2010 - August 2013) and the Hydro Power and Energy Planning Project (HIPP starting September 2013). The Georgian National Energy and Water Supply Regulatory Commission (GNERC) was provided guidance in reforming the regulatory framework, including the development of the USoA. The USoA and its constituent parts were approved by GNERC in December 2016 and became mandatory from January 2019. The USoA for the gas sector includes a Regulatory Chart of Accounts (CoA), instructions to the chart of accounts, general and special guidelines, reports, and instructions to reports. This document presents Accounts 2200-2299, which are part of the USoA for the gas sector. The Regulatory Chart of Accounts includes accounts for non-current assets, such as accumulated depreciation of buildings and construction. The accumulated depreciation of buildings and construction is categorized by activity, including transmission and transportation, distribution, supply, and storage. Each category is further sub-categorized by specific activities, such as transmission and transportation through natural and artificial obstacles, anti-erosion measures, and administration. The accounts are presented in a hierarchical structure, with more specific accounts nested under broader categories. The USoA has proven to be a good tool for financial management of utilities, allowing for better cost control and insights on the efficiency of companies. The system provides a sound basis for recording expenses and assets of rate-regulated gas utilities, enabling financial information to be properly recorded and traced for the purpose of sector regulation.