1. Commercial Quality of Service Giorgi Pangani Methodology and Quality of Service Department 10-14 September, 2012 Kutaisi, Georgia Georgian National Energy and Water Supply Regulatory Commission

2. COMMERCIAL QUALITY OF SERVICE COMMERCIAL QUALITY OF SERVICE GNERC was established in 1997; First step towards “quality of service” was done in 2008; 1997 - 2008;

3. COMMERCIAL QUALITY OF SERVICE COMMERCIAL QUALITY OF SERVICE In 2008 GNERC has adopted normative act- decree N20 – Principles of Supply and Consumption of Electricity; 1. How to get connection to the electricity network, 2. How to become consumer and a.s.

4. COMMERCIAL QUALITY OF SERVICE COMMERCIAL QUALITY OF SERVICE In March 2009, GNERC makes a new regulation, which is dedicated to improving the commercial quality of services in the electricity sector – Decree N3 on “Adoption of Commercial Quality Indexes Monitoring Instructions of Electricity Distribution Licensee Service”; Decree №9 on “Adoption of Customer Reliability Supply Indexes Monitoring Instructions of Electricity Distribution Licensee Service”.

5. COMMERCIAL QUALITY OF SERVICE COMMERCIAL QUALITY OF SERVICE Decree N3 servicequality requirements 1 proven reply to consumers’ written notificationsnot more than 2 weeks 2 inform consumers date and duration of electricity supply service planned interruption not more than 3 working days 3 repair work – resumption of electricity supply service to a consumer disconnected due to unplanned interruption not more than 6 hours for simple work; not more than 2 working days for complex work or, if the work requires planning documentation, time, defined by the proper documentation

6. COMMERCIAL QUALITY OF SERVICE COMMERCIAL QUALITY OF SERVICE consumer connection to the network (switching metering tools) not more than 5 working days consumer, disconnected due to unpaid bills, connection to the distribution network not more than 6 hours after bill payment or drawing up payment portioning draft accurate charged sum upon consumer’s request not more than 5 working days after notification receiving check voltage magnitude upon consumer’s request (dips to nominal voltage or transients) visiting consumer, analyzing results and offering corrections in not more than 5 working days check consumer’s metering devices upon his request (for example, counting of circling frequency) not more than 2 working days after the notification was received waiting to the reply of the operator of the contact – centre (call – centre) ( answering speed) not more than 20 seconds

7. Goals and Objectives: 1. Transparency; 2. Improve investment and business environment; 3. Consumers' rights protection.

8. COMMERCIAL QUALITY OF SERVICE COMMERCIAL QUALITY OF SERVICE Biggest challenge for the GNERC in 2012 is the new Regulation of Commercial Quality of Service; In the beginning of 2012 commission makes inspection of distribution company; The inspection showed that information provided by companies were not true.

9. COMMERCIAL QUALITY OF SERVICE COMMERCIAL QUALITY OF SERVICE GNERC is going to introduce the program, which will give the possibility to observe over everything in live; Program will be able to recognize the violation of the requirements and calculate amount of compensation; What is most important new decree will introduce new standards and requirements and first time there will be amount of compensation.

10. COMMERCIAL QUALITY OF SERVICE COMMERCIAL QUALITY OF SERVICE

12. Although GNERC was all the time improving its decrees and regulations real breakthrough happened in November 2011: Doing Business project : Georgia's aggregate ranking in 2011 which is measured by 11 indicators was – 17; One of the indicators is - Getting electricity and by this indicator our ranking was – 91.

13. COMMERCIAL QUALITY OF SERVICE COMMERCIAL QUALITY OF SERVICE GNERC have introduced a so-called "one - stop shop" principle:

14. COMMERCIAL QUALITY OF SERVICE COMMERCIAL QUALITY OF SERVICE New consumer has to fill application form which is adopted by the GNERC and pay half of the "capacity package" fee; No additional documents are required; Distribution company must respond on the application form in 5 days; Everything including collection of permissions must be done by distribution company.

15. COMMERCIAL QUALITY OF SERVICE COMMERCIAL QUALITY OF SERVICE The company is obliged to provide for a new customer, the person to contact; Distribution company has to finish connection in the right time, otherwise fee reduces on 50 percent. If new consumer does not get the response within 5 days, although distribution company is already working on connection, new consumer can ask GNERC for reducing the connection fee on 50 percent;

16. Thank you