Energy, Gas, Latvia, Legislation

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Government passes regulations allowing companies to buy natural gas outside Latvia

BC, Riga, 09.02.2016.Print version
The government today approved the Economics Ministry's regulations on supply and use of natural gas, which stipulate that companies in Latvia will be able to buy natural gas from foreign gas suppliers, informs LETA.

The Economics Ministry previously said that the current regulations on the supply and use of natural gas, endorsed by the cabinet of Ministers in 2008, were not comprehensive and sometimes too vague, resulting in problems with implementation of the regulations and unclear definitions of the rights and duties of natural gas users and the operator of the natural gas distribution system. The regulations also go against several other regulations, and only deal with households' use of gas.

 

The Public Utilities Commission last September approved new natural gas infrastructure rules, therefore the operator of the natural gas supply, distribution and storage systems has to ensure equal and open access to the system for all users. In essence, the regulations state that natural gas users in Latvia have the right to buy natural gas from foreign natural gas suppliers.

 

To that end, the Economy Ministry's bill stipulates that natural gas users other than households have the right to sign, in addition to natural gas supply agreements, agreements on transportation of natural gas bought beyond Latvia to a given facility.

 

LETA also reported, Economics Minister Dana Reizniece-Ozola (Greens/Farmers) announced at the beginning of January that her ministry was preparing the necessary regulations, which would allow joint-stock power supply company Latvenergo purchase gas from Lithuania. Latvenergo has repeatedly sent joint-stock gas supply company Latvijas Gaze a formal letter seeking permission to access the gas company's infrastructure, but its request will most probably be turned down.

 

Reizniece-Ozola informed that the Economy Ministry was preparing Cabinet regulations which would allow Latvenergo to purchase gas from other sources before the opening of the gas market in 2017.

 

The Supreme Court on January 5 overruled the decision of the Administrative Regional Court granting Latvijas Gaze an injunction on the rules regulating the use of natural gas infrastructure, which, among other things, allow consumers in Latvia to buy gas from Lithuania and other alternative suppliers.






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