Energy, EU – Baltic States, Gas, Latvia, Legislation

International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 15:06

Government approves breaking up Latvijas Gaze utility

BC, Riga, 04.03.2015.Print version
On March 3rd 2015, the government approved the motion to break up the Latvian gas supply company Latvijas Gaze, informs LETA.

The Economy Ministry informed the government that Latvijas Gaze is both a gas supplier and a gas storage operator. This is why the most important task is to separate gas supply and sale from gas distribution and storage. The ministry reported that there are three breakup models – an independent supply operator, an independent system operator, and partition of property rights.

 

In case of an independent supply operator, the supply system would belong to its operator, while the supply operator would remain as part of Latvijas Gaze – either as a subsidiary or a new commercial company, owned by Latvijas Gaze shareholders.

 

This also means that the supply operator would be completely independent from Latvijas Gaze.

 

Because the independent system operator model has been implemented in only a number of EU member states, it will not be discussed.

 

The Economy Ministry indicated that by implementing the partition of property rights model, Latvijas Gaze would have a sister company, which would act as a supply system operator, as well as own the supply system assets and a license to provide natural gas supply services. The company would be independent from Latvijas Gaze, and its shares would belong to independent individuals, unrelated to Latvijas Gaze.

 

After accepting the ministry's report, the government decided to approve the partition of property rights of the natural gas supply system operator as of April 3, 2017, stipulating that the supply operator would also deal with the natural gas storage infrastructure. The government's decision also stipulates the establishment of a sister company, which would deal with natural gas supply and storage infrastructure.






Search site