Licensing of activities in energy sector of Latvia
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1 Licensing of activities in energy sector of Latvia Ainars Mengelsons Public Utilities Commission of Latvia Inogate Programme Riga, October 4, 2010
2 CONTENT Market overview Licences Main provisions of legal acts Process Monitoring
3 Electrical Ring of the BRELL network kV
4 Key statistics for the power sector year 2009 (Latvia) Electricity market size - 6,96 TWh Net electricity importer- 37% Generation hydro and renewables 36%, fossil fuel 27% Installed power capacity 2296 MW Available capacity to cover peak -1029MW Minimal load 412 MW Maximal load MW
5 Licences - power sector Trade 22 Transmission - 1 Distribution - 11 Production: Hydro - 2 Wind - 32 CHP - 52
6
7 Key statistics for the natural gas sector year 2009 Market size 1,5 billion m3 Net gas imported 100% Minimal load 1,7 Mcm/d Maximal load 20 Mcm/d Capacity of storage 4,3 bilion m3
8 Licences gas sector Trade 1 Transmission - 1 Distribution 1 Storage - 1 LPG distribution from underground reservoirs -7
9 Legal provisions power trade licence General provisions : Company is registered in the Register of Enterprises of Latvia; Statement issued by the State Revenue Service on applicant s registration as the tax payer and notice of tax payment; Overview of the applicant s last year activities and planned activities (business plan); Structure of existing or potential consumers; Fees or taxes: the annual state duty of 0,17% on the company s net turnover of regulated services in the previous year - from 2010 (this duty was 0,20% in previous years). Validity of the licence 5 years.
10 Legal provisions power distribution licence General provisions : Company is registered in the Register of Enterprises of Latvia; Statement issued by the State Revenue Service on applicant s registration as the tax payer and notice of tax payment; Overview of the applicant s last year activities and planned activities (business plan); Structure of existing or potential consumers; Validity of the licence 20 years; List of equipment required to provide services Service area with a map Consent of the major distributor if service areas are overlapping
11 Legal provisions power generation licence Company is registered in the Register of Enterprises of Latvia; Statement issued by the State Revenue Service on registration as the tax payer and notice of tax payment; Overview of the applicant s last year activities and planned activities (business plan); Structure of existing or potential consumers; Validity of the licence 20 years; Deadline to start production; List of equipment required to provide services; Address and location of the power plant;
12 Legal provisons - general Fees or taxes: The annual state duty of 0,17% on the company s net turnover of regulated services in the previous year - from 2010 (this duty was 0,20% in previous years).
13 Legal provisions gas storage licence Company is registered in the Register of the Enterprises of Latvia; Statement issued by the State Revenue Service on registration as the tax payer and notice of tax payment; Overview of the applicant s last year activities and planned activities (business plan); Structure of existing or potential consumers; Validity of the licence 20 years; Deadline to start production; List of equipment required to provide services; Map of storage area.
14 Legal provisions licensing process Simple application; Documents required are listed in the Regulations; Decision is taken within 30 days after submission of all documents required; Prior to issuing a license a draft text is sent to company for comments.
15 Legal provisions monitoring Regulations on submission of required information, data segments differentiated: by sectors; by type of activity Document is uploaded on the regulator s web page; Regulator sends reminder notices Legal provisions are put in place to impose sanctions on companies not fulfilling obligations
16 Thank you for attention!
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