Energy, Gas, Latvia, Legislation, Lithuania

An administrative case against LG was opened in March, as the regulator points out that LG had not replied to a letter from Latvenergo in which the energy company had requested access to gas infrastructure. To this day, the company has still not been able to access the gas infrastructure.

Taking the above into account, the Public Utilities Commission has since issued a warning to LG.

The chairman of the Public Utilities Commission Rolands Irklis explained that the regulator's warning means that the gas concern must comply with the regulations in the Energy Law regarding access to gas infrastructure by third parties.

LG can appeal the warning in court. If LG does not comply with its obligation to allow access to gas infrastructure by third parties, and thus violating the Energy Law, the Public Utilities Commission will be able to fine the company 10% of its annual turnover.

''The Public Utilities Commission's aim is not to punish LG, but to make sure it abides by regulations. However, we are not confident that LG will actually comply with the decision made by the Public Utilities Commission. If this will be the case, then the regulator will be able to decide on a harsher penalty,'' Irklis emphasized.

As reported, Latvenergo wished to make a test purchase of gas from a Lithuanian supplier already in March. Lithuania's Litgas has expressed readiness to supply gas to Latvenergo for a better price than offered by Latvijas Gaze.

The Latvian government on February 9 adopted regulations on supply and use of natural gas, allowing companies to purchase gas outside Latvia. The new regulations allow Latvenergo purchase gas from the third parties before liberalization of the gas market in 2017.