GNERC to become authorized to ban the sale of more than 5% share of water supply distributor companies

The project on the changes in Law on Energy and Water Supply is to be introduced on July 13 sitting.

According to the project, if the distributor company decides to sell 5% or more of its share/stock, it will be obliged to notify the Georgian National Energy and Water Supply Regulatory Commission (GNERC) in advance.

The notification for the Commission should include the following information about the participant sides: a) the name of the company, the type of activity and experience in the energy sector, registration data, founding documents, supervising person's name, last name, address and citizenship; b) the report on the value of the assets and audit report on financial accounts of the company; conditions on changing supervisor and/or merging/selling shares/stocks or operation assets; c) information about the source of financial resources.

According to the project, the GNERC will be entitled to request the provision of information which isn't included in the aforementioned list. The Commission will have a right to authorize or ban the operation after 3 months of its notice. The project notes that in addition to different reasons, the ban might be caused by the possible deterioration of customer service.

According to the explanatory note, the goal of the changes is to envisage possible negative results of the transaction, to prevent them, and to ensure and keep the balance between private and public interest. The initiators of the project are GNERC and the Ministry of Economy and Sustainable Development.

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