Baltic, Energy, Gas, Latvia, Legislation

The commission has received proposals from eleven market players and institutions regarding regulations on natural gas distribution system of the joint-stock company Latvijas Gaze and regulations on the use of Incukalns underground gas storage facility of Latvijas Gaze.

Access to the natural gas distribution system and the Incukalns gas storage facility will be provided to all system users and those who apply for the right to use it, which is why market players and institutions from the neighbor countries, Lithuania and Estonia, have also handed in their proposals. The proposals have been received from Eesti Energia and Lithuanian companies Klaipedos nafta, LitGas and others.

Latvian companies have also submitted their proposals. Joint-stock power utility Latvenergo indicates after acquainting itself with the draft regulations that both regulations are not completely in line with the Energy Law and the European Union's directives, and if the regulations are approved in their current form they may trigger a European Commission's infringement procedure against Latvia.

Likewise, the National Gas Terminal Association has also stated that the regulations need to be altered as they currently are in the interest of Russian suppliers and do not guarantee equal approach to all suppliers.

The Public Utilities Commission will be evaluating the proposals until April.

The commission announced the public consulting about the draft regulations on February 5 this year. The two bills were drafted following amendments to the Energy Law in 2014, they are meant to ensure fair and objective regulations on distribution, supply and storage of natural gas and liquefied natural gas to make the distribution system accessible to all users and market players.

Under the current regulations Latvijas Gaze, the operator of the distribution system and storage facilities, will have to apply the same contracting principles in deals with all third parties.