LATEST UPDATE IN LATVIA

Electricity Market Opening All households and non household consumers with less than 50 employees and yearly turnover less than 7 million LVL have the rights to use the universal service of electricity; Universal service – ability to be supplied by economically justified price; The consumers which do not qualifies to get universal service are obliged to buy electricity from traders for contract price;

Electricity Market Opening The Commission granted rights to JSC Latvenergo from January 1, 2009 to set the tariffs for the captive customers by the company itself: Commission within 21 days asses tariffs conformity with the calculation methodology and justification; if the Commission does not reject tariffs proposal, it enter into force on the date indicated but the company; if the Commission rejects tariff proposal tariffs do not enter in the force.

Electricity Market Opening 32% of total electricity is traded for contract price (non-regulated); Since July 1, 2008 130 customers switched the supplier, 10 of them twice; On September 1, 2009 8% from free market customers purchase electricity from independent traders.

On February 2009 new Regulations on RES-E were accepted New legislation On February 2009 new Regulations on RES-E were accepted Price is fixed for period of 10 years and reduced after according to formula As reference to set price for electricity from biomass is used natural gas price Prices are differentiated by: installed capacity type of fuel

On February 2009 new Regulations on CHP were accepted New legislation On February 2009 new Regulations on CHP were accepted Introduced provision how to get qualified for capacity payment On July 2009 new regulations on electricity trade were accepted Reduced time of prior notice of customer’s switching from 3 to 2 months Adjusted balancing provisions

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