According to a new blog post by Energy Community gas expert Peter Pozsgai, the EU4Energy Governance project has been providing vital support to the governments of Georgia, the Republic of Moldova and Ukraine in preparing the legislative and regulatory frameworks for gas market reform. According to the expert, customers will benefit from better services and competitive gas prices in the long run.
So what is gas market reform? Simply put, market reforms involve setting the legal and regulatory framework that will allow gas markets to operate competitively. This will allow new gas suppliers to enter the market, will limit the monopoly powers of the incumbent companies, and will ensure that market relations such as setting prices or providing access to infrastructure are fair and non-discriminatory.
In Georgia, the key priorities are the adoption of the new Law on Energy, which includes the unbundling of gas transport and gas supply services, establishing a system for open and transparent access to gas networks and putting in place the necessary instruments for efficient supplier switching. In Moldova, the issue of unbundling and connecting to other markets, such as Romania, remains a challenge. The unbundling of Naftogaz in Ukraine and the establishment and certification of an independent gas transmission system operator are pre-requisites for successful gas market reform.
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