Baltic Electricity Market Mini-Forum 3 April, 2007 Riga, Latvia

1. Baltic Electricity Market Mini-Forum3 April, 2007 Riga, Latvia Licensing of the Electricity Supply Activity in the Baltic’s Kestutis Zilenas Head of Licensing department National Control Commission for Prices and Energy of Lithuania

2. Background • During the last mini-forum was agreed, that it is necessary: • create working group; • compare existing licensing systems; • identify differences and existing barriers; • make applicable proposals and take actions Baltic Electricity Market Mini Forum Riga, Latvia

3. Licensing requirements in Estonia Main requirements to receive a electricity supplylicense: • Registered company in Commercial Register of Estonia; • Share of capital shall be at least 32 000 EUR; • Precise description of the applicant’s planned activities (business plan); • Validity of a license operation – termless. • Fees: • State fee for issuing a license – 640 EUR; • Regular fee - 640 EUR per year of validity. Baltic Electricity Market Mini Forum Riga, Latvia

4. Licensing requirements in Latvia Main requirements to receive a electricity supply license: • Registered company in Commercial Register of Latvia; • Statement issued by the State Revenue Service on applicant’s accession to the tax payers and fulfillment of budget liabilities; • Overview of the applicant’s last year activities and planned activities (business plan); • Structure of existing or potential consumers. • Validity of a license operation – 5 years • Fees: • State fee for issuing a license – 143 EUR; • Regular fee - each year in amount of 0.2% of net turnover in previous year regarding to the public services provided by a company. Baltic Electricity Market Mini Forum Riga, Latvia

5. Licensing requirements in Lithuania Main requirements to receive a electricity supply license: • Registered company in Commercial Register of Lithuania; • information about the internal organizational structure of the company; • a list of licenses and statutory authorizations for activities in electricity sector obtained by the enterprise and its branches; • balance sheets and auditor’s reports for the last two years (if the enterprise performed business activities for less than two years – just for the last year); • commitment to fulfill the license requirements. • Validity of a license operation – termless • Fees: • State fee for issuing a license – 580 EUR • Regular fee - not applicable Baltic Electricity Market Mini Forum Riga, Latvia

6. Conclusions (1/2) • Differences: • licensing systems are similar; • minimum (simple) requirements exist; • however depending on market development the requirements consistently should be minimized • Barriers: • import/export permits system Lithuania • import licensing system in Estonia Baltic Electricity Market Mini Forum Riga, Latvia

7. Conclusions (2/2) • Proposals: • 1) Abolition of the export and import permits in the Baltic’s should be one of the main objectives • 2) Simplified Procedure for issuing Supply Licenses • 3) Mutual recognition of the Supply Licenses – could be the Goal! Baltic Electricity Market Mini Forum Riga, Latvia

8. e-mail: kestutis.zilenas@regula.is.lt Questions ? Thank you for your attention! Baltic Electricity Market Mini Forum Riga, Latvia