SPRK notes that the administrative case was launched against LG in relation to Latvenergo’s request to be provided with access to gas infrastructure. SPRK believes LG’s refusal to provide access to its infrastructure to Latvenergo is a breach of the Energy Law.
In addition, the regulator notes that LG’s response to Latvenergo’s letter was delayed, as it was not provided within 30 days. SPRK also believes LG has basically refused to allow the electrical energy producer to gain access to the gas infrastructure.
LG representatives claim there is no reason to launch an administrative case. The company also states that no refusal was provided to Latvenergo in the response letter. According to LG, there are new legal reasons that forced LG to turn to SPRK with a request to resolve the matter as to how LG should view Latvenergo’s request.
LG has asked SPRK to explain how it should act in regards to Latvenergo’s request to be provided with access to the gas infrastructure.
LG representative Vinsents Makaris explains that LG had sent a letter to Latvenergo, explaining that the gas company does not know how to act in regards to the request, as the approved Electrical Energy Law goes against the privatization contract and LG’s exclusive licence.
Latvenergo representative Andris Siksnis notes that the company has received a letter from LG that does not contain confirmation for provision of access to Latvia’s gas system services to help transport gas from third countries in March 2016. This makes it the third time when Latvenergo is not allowed to procure gas from Lithuanian traders for Latvenergo’s production purposes.
«Latvenergo will take necessary actions to use the right detailed in the Energy Law and SPRK’s regulations in regards to procuring gas from traders outside of Latvia,» – said Siksnis.
Latvenergo wanted to receive the test supply of gas from Lithuania in March. Litgas had previously expressed readiness to supply Latvenergo with 1 million m3 of gas at a price better than the one offered by LG.
On 9 February, Latvia’s government approved Economy Ministry’s proposed rules for Natural Gas Supply and Use. These amendments allow companies to procure gas outside of Latvia.
«Considering that rules approved by SPRK last year in regards to access to LG infrastructure do not provide access to the entire system, rules provided by the Cabinet of Ministers will service as a temporary solution,» – said then the Economy Minister of Latvia Dana Reizniece-Ozola.
Last year, SPRK accepted the new rules regarding the use of the country’s gas system and Incukalns underground gas reservoir to allow Latvia’s consumers to receive gas from alternative sources. On 17 November, Administrative Regional Court satisfied LG’s request in regards to the application of temporary protection in this case. Later, SPRK contested this ruling. On 5 January, the Supreme Court of Justice cancelled the administrative court’s ruling regarding temporary protection. The ruling of the Supreme Court is final and is not subject to appeal.