Assessment of Customs Procedures for Cross-Border Electricity Trading

Project Description:

The overall objective of the project is to introduce the Electricity Trading Mechanism (ETM) and to enable competitive electricity trading in the domestic and export (primarily Turkish) markets.

The introduction of the ETM requires adjustments to the existing customs regime to ensure accurate accounting of imported and exported electricity and proper collection of customs duties. Therefore, G4G contracted PMCG to assess the existing customs rules and procedures related to cross-border electricity trade, to identify the gaps and to recommend the necessary modifications to support simultaneous electricity trade under the ETM.

PMCG consultants are conducting the following activities:

1. Evaluating the materials provided by G4G to assess the existing situation 
2. Performing analysis of:

• Customs clearance procedures for electricity import and export
• Meter reading and reporting to customs
• Customs inspections and checks
• Customs duties and fees applying to electricity import and export
• Other customs regimes applicable to electricity trading

3. Developing recommendations on necessary modifications to the customs rules and procedures to support simultaneous trade under the ETM
4. Participating in the Cross-Border Electricity Trading Summit to be held on May 31, 2016. The topics to be presented by the consultants include:

• Case study of Serbian electricity market development and cross-border trading practices with its neighbors
• Customs and meter reading procedures for electricity import/export (international best practices/Serbian case)

Background information:

Governing for Growth in Georgia (G4G) is a five-year multi-million dollar USAID project designed to support the Georgian government to create a better enabling environment in which legal and regulatory reforms are fairly and transparently conceived, implemented and enforced through consultative dialogue.

One of the major areas of reform supported by G4G in the energy sector of Georgia is the introduction of the Electricity Trading Mechanism (ETM) to enable competitive electricity trading in the domestic and export (primarily Turkish) markets. The ETM will enable the simultaneous foreign trade of electricity as opposed to the one-directional transactions that are currently the norm. The new ETM system is expected to be launched in 2019.

Follow the links below for related projects:
Governing for Growth in Georgia (G4G)
Improving Deregulation and Fiscal Efficiency in Republic of Albania
Mongolia Business Plus Initiative (BPI)
Simplification of Tax Code
Drafting WRAP 11th Principle – Customs Compliance