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

International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 15:44

Latvijas Gaze appeals regulator's warning

BC, Vilnius, 31.05.2016.Print version
Latvijas Gaze power utility has appealed the Public Utilities Commission's (regulator) warning denying power supply company Latvenergo access to gas infrastructure so that the energy company could begin purchasing gas from Lithuania, informs LETA.

Dace Baltabola, a spokeswoman for Latvijas Gaze, said that the company had lodged the appeal against the regulator's ruling with Administrative Regional Court.

 

Rolands Irklis, the head of the Public Utilities Commission, said that the regulator is expected to provide its explanations to the court by June 27 and that the court will hear the appeal next February.

 

Irklis also said that the regulator expects Latvijas Gaze to provide additional explanations about its request for a temporary suspension of third persons' rights to use the company's natural gas infrastructure for transportation of natural gas purchased from other suppliers for consumption in Latvia's territory.

 

Such a request had been made in line with the Energy Law, which provides that if a vertically integrated energy supply merchant has encountered or considers that it will encounter serious economic and financial hardships in relation to the fixed payment volume contractual obligations, which he or she has undertaken in one or more natural gas purchase contracts, such merchant may submit to the regulator an application for the granting of temporary derogation from the duties specified in the law.

 

Latvijas Gaze said in a statement to the press that the company is a vertically integrated energy supply merchant that by April 2017 has exclusive license for transmission, distribution, trade and storage of natural gas in the territory of Latvia and has a long-term agreement with Russian energy concern Gazprom on natural gas supplies until 2030 on certain volumes of natural gas that should be purchased annually. Due to several factors, for example, warm winters, that reduce natural gas consumption in the region, and reduction of capacities of large industrial gas consumers, Latvijas Gaze already now is not able to meet its terms under the agreement with Gazprom.

 

It has also been reported that in March Latvenergo bought 5.2 million cubic meters of gas from Gazprom Export, a subsidiary of Russian gas giant Gazprom, and asked Latvijas Gaze permission to store the gas in its underground gas storage facility in Incukalns and remove it from there at a particular time.

 

In April, the Public Utilities Commission issued a formal warning to Latvijas Gaze for not granting Latvenergo access to its infrastructure to receive a test gas delivery from Lithuania.






Search site