The Cabinet of Ministers in Latvia yesterday approved amendments to the
Energy Law to ensure third parties’ access to Latvia’s natural gas supply
system, informs LETA/Nozare.lv.
At the moment, there is one vertically-integrated company in Latvia – Latvijas Gaze – that buys, stores, transport, distributes and sells natural gas in Latvia. Latvia’s natural gas supply system is not connected to any other European Union member state’s system, except Lithuania and Estonia, and Russia remains the sole supplier of natural gas to Latvia.
The objective of the amendments, drafted by the Economy Ministry, is to transpose the Third Energy Package of the European Union into Latvian legislation to ensure liberalization of the natural gas market of Latvia, encourage alternative supplies and competition on the market.
The first stage of the gas market liberalization plan stipulates ensuring third parties’ access to the natural gas supply system of Latvia, and separating the function of the distribution operator by January 1, 2015.
The directive also deals with natural gas companies’ annual reports and other aspects of the natural gas market liberalization.
The Economy Ministry note that the EU rules are binding on Latvia, and that Latvia has already given two transition periods. Therefore, the first stage of the liberalization of the natural gas market is to commence and proceed pursuant to all the requirements of the Third Energy Package.
Source: The baltic Course