LATEST UPDATE IN LATVIA

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LATEST UPDATE IN LATVIA
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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

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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.

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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.

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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

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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 customers
  switching from 3 to 2 months
• Adjusted balancing provisions

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