2. - GDP 2011 versus 2010 – increase by 5.5%
KEY DATA
- GDP  2011 versus 2010 – increase by 5.5%
Electricity final consumption:
2011 versus 2010 – decrease by 0.4%
Gas consumption *
2010 versus 2009 – increase by 19.3%
2011 versus 2010 – decrease by 11.9%
* impact of cold winter

3. The registration took effect from January 1, 2012
Latest changes – Law’s
The Electricity Market Law was amended in July 2011; the Energy law was amended in October 2011 – amendments simplifies start up of trade and production activities in heat and electricity sectors
The licensing of power and heat generation and sales activities is substituted by registration
The registration took effect from January 1, 2012
All companies, which held licenses prior to January 1, 2012 were registered automatically
The Regulator elaborated a document setting provisions to be fulfilled by applicants.

4. Latest changes – legal acts
At the end of 2011, the Regulator adopted a set of new legal acts on:
10 year development plans and planning procedure
TSO certification requirements and procedure
At the beginning of 2012:
The requirement to traders on disclosure of information in their bills issued to customers

5. Regulatory independence
The law on Regulators of Public Utilities, which determines status of Regulator, has been amended to be fully in line with the requirements of the Third energy legislative package
After the Parliament adopted this law, it entered into force in August 11, 2011
Some adjustments still to be done

6. Market opening -1 Market opening:
All customers are free to choose their supplier from 2007
Real market opening took place in June 2007 when big consumers entered market.
From April 1, additional 5000 electricity customers became market participants.
Further market opening expected from November 1, 2012 and will reach ~ 75% of market (consumption)

8. Market opening -2 Practical arrangements:
The Regulator adopted standard agreements for licensees of distribution services in March 2012
Revised standard contract for captive customers
Informative event for new market customers spring 2012
Stake in Market board

9. TSO unbundling / certification
Latvia has chosen the unbundling model of independent system operator (IS0)
New company - owner of transmission assets - has been established in February 10, 2011.
The final decision about transfer of ownership rights of ISO - JSC “Augstsprieguma tīkls” - has been taken in January 2012.
At present the owner of ISO is the Ministry of Finance of Republic of Latvia.
In May 2012, ISO has submitted the application to Regulator for certification

10. TSO certification / 10 years plan
In August 2012, the Regulator has adopted TSO’s 10 Year Development plan with conditionality
Intensive process of consultations about certification were carried out during the summer:
ISO, LET, ministry, EC
The Regulator is in a position to finalize a draft opinion on certification and send it to the EC for feedback
Final decision still to be taken in autumn 2012
ISO certification to be finalized at the end of 2012/ beginning 2013

11. Tariff set up
From April 1, 2012 new transmission tariffs are in force with average increase of ~ 7,5%
Gas tariffs adjust in line with prices of oil/ oil products in the world markets
The set up of heat tariffs depends on the fluctuation of price of gas or wood chips
Energy arrears are becoming an important issue, particularly in the heating sector

12. Future activities and challenges
Follow up of the implementation of TSO’s 10 Year Development Plan
Finalize Certification of TSO
Opening of Nord Pool Spot price area in Latvia
Expected changes in the Grid Code as the outcome of ENTSO-E and ACER activities
A lack of clarity regarding the assessment of the EU energy projects of common interests

13. THANK YOU
FOR ATTENTION !