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IMPLEMENTATION OF 3-rd EC PACKAGE IN LATVIA

IMPLEMENTATION OF 3-rd EC PACKAGE IN LATVIA. Electricity Market Opening. All households and non household consumers with less than 50 employees and yearly turnover less than 7 million LVL have the rights to use the universal service of electricity;

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IMPLEMENTATION OF 3-rd EC PACKAGE IN LATVIA

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  1. IMPLEMENTATION OF 3-rd EC PACKAGE IN LATVIA

  2. Electricity Market Opening • All households and non household consumers with less than 50 employees and yearly turnover less than 7 million LVL have the rights to use the universal service of electricity; • Universal service – ability to be supplied by economically justified price; • The consumers which do not qualifies to get universal service are obliged to buy electricity from traders for contract price;

  3. Electricity Market Opening The Commission granted rights to JSC Latvenergo from January 1, 2009 to set the tariffs for the captive customers by the company itself: • Commission within 21 days asses tariffs conformity with the calculation methodology and justification; • if the Commission does not reject tariffs proposal, it enter into force on the date indicated but the company; • if the Commission rejects tariff proposal justified reason, tariffs do not enter in the force.

  4. Electricity Market Opening • 35,6% of total electricity is traded forcontract price (non-regulated); • In a year 2009 90 customers switched the supplier, 4 of them switched back on 1st January 2010; • On 1 January, 2010 8% from free market customers purchase electricity from independent traders.

  5. TSO unbundling • TSO – a/s “Augstprieguma tīkls” is legally unbundled from June 1, 2007. • First reading of concept on TSO unbundling in line with 3-rd package will be presented to the Cabinet of ministers in June 2010. • Initial option - Independent system operator • The lead institution in adoption of package is Ministry of Economy, the first meeting of stakeholders is planed in June, 2010.

  6. Tariffs set up • Transmission tariff calculation methodology approved by Regulator in 2002 with consequent amendments. • The regulator approves tariffs after receiving of justified application form TSO or rejects them. • The procedure described by the Law and could take max 4 months. • Regulator has the rights to ask TSO to submit new tariff proposal, if the case is present. • No subsidies present in the TSO – tariffs.

  7. Access to the system • Regulators in 2008 accepted regulation for connection of costumers and generator to the grid • Technical and operational requirements to the market participants described in the Grid Code • TSO – a/s “Augstprieguma tīkls” has placed draft contracts of system services in web page • Slight adjustment could be required in the Grid Code

  8. Retail market -electricity • Already settled: • universal services; • last resort supplier. • Adjustment required: • provisions related to vulnerable costumers ; • switching time today is 2 months – the new directive envisages only 3 weeks; • providing more information to the customers.

  9. Investments in generations • Authorization procedure – in line with 3 package • Conducted in accordance with objective, transparent and non discriminatory criteria. • Reason for refusal shall be objective, non-discriminatory , well founded and duly substantiated. • Tendering procedure - in line with 3 package • The procedure may be launch only where the authorization procedure and energy efficiency/demand side measures are insufficient to ensure security of supply. • Details of tendering procedure should be published in Official Journal of EU 6 months prior of the closure of tender .

  10. Legal amendments To fulfill theRegulation on conditions for access to the network forcross-border exchanges in electricity in January 2010 the Grid code were amended : • the general scheme for the calculation of the total transfer capacity and the transmission reliability margins; • harmonized calculation and publication of hourly balance energy prices, the prices of previous months to be published till the date15th of current month; • The electricity importer/exporter from the non-EU (perimeter) countries should pay perimeter fee – 0,7 Euro/Mwh; • For consumers with the load less than 100kW the standard load curve could be applied .

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