1 Georgian National Energy and Water Supply Regulatory Commission Institutional structure of the Commission Giorgi Chakhnashvili 27 June - 3 July, 2008

2 Executive director Public defender Advisors Chairman Member Structure of the Commission Department of Electroenergetics Department of Natural Gas Division of Methodology and Information Division of Tariffs and Price Formation International and Public Relations Department Legal Department Accounting Department of Logistics Record keeping and HR Department Department of Certification Department of Water Supply Department of Software

3 Department of Methodology and Informational Provision Methodological Division Division of Analysis and Informational Provision Legal department Legal Division Division of Legal Provision

4 Department of Electroenrgetics Technical Devision Department of Tariffs and Price Formation Electroenergetics Division Natural Gas Division

5 Department of International and Public Relations Public Relations Division Record-keeping and Human Resources Department Human Resources Record-keeping

6 In accordance with the Law, all members of the Commission are authorized to have an account Hence, they have relationship with all departments By order of the Commission, departments prepare agenda of sessions, draft decrees, responses to letters By order of members of the Commission, departments arrange for working meetings with licensees and consumers. It is also possible for invited specialists to participate in these working meetings Sessions of the Commission are public. Decrees and decisions of the Commission are published in Georgian Legal Matsne

7 All decrees and decisions, orders, verdicts and any other document issued by the Commission are available for public discussion. The procedure of maintaining confidentiality is specified by the Commission in accordance with the effective legislation. The Commission shall, prior to approval of any decree or decision, notify interested parties and provide them with a possibility to attend a respective session of the Commission. The Commission is authorized, in order to maintain confidentiality, to hold closed sessions. A decree or decision taken at a closed session of the Commission shall be made public.

8 In accordance with the general administrative code, on request of a licensee and on the basis of relevant justification, a certain information about a licensee may be declared confidential. Decrees and decisions of the Commission are taken at a session of the Commission by majority of votes of members of the Commission. A decision on an issue under consideration is regarded to be taken, if it was voted for by no less than two members of the Commission. A Commission member has no right to abstain. A different position of a member of the Commission is recorded in a protocol of the session.

9 Rules of declaration of limitation of the terms of acting, unfitness and economic interests of members of the Commission are specified by the Law on Conflict of Interests in Public Offices and Corruption The Commission has also adopted a regulation on Ethical Behaviour, which to a full extent regulates norms of behaviour of members of the Commission and employees of the Office

10 An employee of the Office is not authorized to have any direct or indirect property and economic interest towards a licensee, importer, exporter, supplier and commercial system operator, or to hold a position in an enterprise, which belongs to one of them. An employee of the Office is authorized to be a consumer of a licensee, importer or supplier, but this licensee, importer or supplier may not offer, and an employee may not accept from any of them, delivery of services free of charge or at rebate.

11 The Commission actively cooperates with the State executive and legislative structures The Chairman of the Commission, is a special member of the governmental commission, whose function is to present to the Government relevant opinions and proposals regarding reformation of the electroenergetics sector. The Commission closely cooperates with the Ministry of Energy of Georgia, which is the State policy-maker in the Energy sector. Members of the Commission actively collaborated with the sectoral economic and legal committees of the Georgian Parliament in adoption of the Law on Electric Power and Natural Gas and making changes and amendments therein.

12 The Commission is entitled to membership and cooperation with relevant international and national organizations. The Commission actively cooperates with a non- government sector, and in particular with the following NGOs: Caucasian Environmental Non- Governmental Organizations Network (CENN), Green Alternative, EcoVision

13 International Relations From the day of its foundation, the Commission has been fruitfully cooperating with international organizations and donors, such as: US Agency for International Development (USAID) World Bank (WB) German Bank for Reconstruction and Development (Kfw) Monetary Fund (MF) Under their support, important projects are implemented: Tariff Methodologies Quality Monitoring Involvement of Public into Energy Sector Management

14 International relations National Association of Regulators of Public Utilities (NARUC), In 2001 the Commission became a founder member of the Energy Regulators Regional Association (ERRA) In 2007 the Commission became a supervisor member of the Energy Regulators Board of European Countries (ECRB)

15 Thank you for attention