Energy, Gas, Latvia, Legislation

He said he would not rush with dividing Latvijas Gaze, as a regulated monopoly in a small country can be more efficient.

Kalvitis believes that after the reform, gas tariffs may go up, as the largest proportion is made up by administrative costs, but the gas itself costs only 40% of the total costs. The price of gas is currently declining on the market, Kalvitis added.

He admitted that it is hard to say whether it will be possible to split Latvijas Gaze before the deadline, as no one has prior experience in similar situations. Division of Latvenergo was different because the company was fully owned by the state, whereas Latvijas Gaze is a private company, said Kalvitis.

In his opinion, it would be better if the reorganization process was carried out in a reasonable and calm way to avoid security problems.