UPDATE - LATVIA
Ainars Mengelsons
Public Utilities Commission of Latvia
Baltic Electricity Market Mini Forum
September 21, 2012 Riga, Latvia
KEY DATA
- GDP 2011 versus 2010 – increase by 5.5%
- Electricity final consumption:
 2011 versus 2010 – decrease by 0.4%
- Gas consumption *
 2010 versus 2009 – increase by 19.3%
 2011 versus 2010 – decrease by 11.9%
* impact of cold winter
Baltic Electricity Market Mini Forum
September 21, 2012 Riga, Latvia
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Latest changes – Law’s
The Electricity Market Law was amended in July 2011; the
Energy law was amended in October 2011 – amendments
simplifies start up of trade and production activities in
heat and electricity sectors
The licensing of power and heat generation and sales
activities is substituted by registration
The registration took effect from January 1, 2012
All companies, which held licenses prior to January 1,
2012 were registered automatically
The Regulator elaborated a document setting provisions
to be fulfilled by applicants.
Baltic Electricity Market Mini Forum
September 21, 2012 Riga, Latvia
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Latest changes – legal acts
At the end of 2011, the Regulator adopted a set of new
legal acts on:
 10 year development plans and planning procedure
 TSO certification requirements and procedure
At the beginning of 2012:
The requirement to traders on disclosure of information
in their bills issued to customers
Baltic Electricity Market Mini Forum
September 21, 2012 Riga, Latvia
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Regulatory independence

The law on Regulators of Public Utilities, which
determines status of Regulator, has been amended
to be fully in line with the requirements of the Third
energy legislative package

After the Parliament adopted this law, it entered into
force in August 11, 2011

Some adjustments still to be done
Baltic Electricity Market Mini Forum
September 21, 2012 Riga, Latvia
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Market opening -1
Market opening:
 All customers are free to choose their supplier from
2007
 Real market opening took place in June 2007 when
big consumers entered market.
 From April 1, 2012 additional 5000 electricity
customers became market participants.
 Further market opening expected from November 1,
2012 and will reach ~ 75% of market (consumption)
Baltic Electricity Market Mini Forum
September 21, 2012 Riga, Latvia
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GWh
4000
3000
Market participants
Market participants
2000
1000
Captive consumers
Captive consumers
0
2011. jan.-jun.
2012.jan.-jun.
Baltic Electricity Market Mini Forum
September 21, 2012 Riga, Latvia
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Market opening -2
Practical arrangements:
 The Regulator adopted standard agreements for
licensees of distribution services in March 2012
 Revised standard contract for captive customers
 Informative event for new market customers spring
2012
 Stake in Market board
Baltic Electricity Market Mini Forum
September 21, 2012 Riga, Latvia
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TSO unbundling / certification
•
•
•
•
•
Latvia has chosen the unbundling model of
independent system operator (IS0)
New company - owner of transmission assets - has
been established in February 10, 2011.
The final decision about transfer of ownership rights
of ISO - JSC “Augstsprieguma tīkls” - has been taken
in January 2012.
At present the owner of ISO is the Ministry of Finance
of Republic of Latvia.
In May 2012, ISO has submitted the application to
Regulator for certification
Baltic Electricity Market Mini Forum
September 21, 2012 Riga, Latvia
9
TSO certification / 10 years plan
•
In August 2012, the Regulator has adopted TSO’s 10
Year Development plan with conditionality
•
Intensive process of consultations about certification
were carried out during the summer:
• ISO, LET, ministry, EC
•
The Regulator is in a position to finalize a draft
opinion on certification and send it to the EC for
feedback
•
Final decision still to be taken in autumn 2012
•
ISO certification to be finalized at the end of 2012/
beginning 2013
Baltic Electricity Market Mini Forum
September 21, 2012 Riga, Latvia
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Tariff set up
•
•
•
•
From April 1, 2012 new transmission tariffs are in
force with average increase of ~ 7,5%
Gas tariffs adjust in line with prices of oil/ oil
products in the world markets
The set up of heat tariffs depends on the fluctuation
of price of gas or wood chips
Energy arrears are becoming an important issue,
particularly in the heating sector
Baltic Electricity Market Mini Forum
September 21, 2012 Riga, Latvia
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Future activities and challenges
•
Follow up of the implementation of TSO’s 10 Year
Development Plan
•
Finalize Certification of TSO
•
Opening of Nord Pool Spot price area in Latvia
•
Expected changes in the Grid Code as the outcome
of ENTSO-E and ACER activities
•
A lack of clarity regarding the assessment of the EU
energy projects of common interests
Baltic Electricity Market Mini Forum
September 21, 2012 Riga, Latvia
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THANK YOU
FOR ATTENTION !
Baltic Electricity Market Mini Forum
September 21, 2012 Riga, Latvia
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