bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Sunday 25.02.2018 | Name days: Alma, Annemarija
LatviaLatvia

Gas market’s liberalization – what will it mean for consumers?

FaceBook
Twitter
Draugiem
print
(+1 rating, 1 votes)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe liberalization of Latvia’s gas market will increase Latvia’s and the entire region’s energy security, making Baltic States and Nordic countries better connected. Big players will be able to operate better and procure gas at better prices. Consumers will be able to buy gas and electricity at cheaper prices, experts admit.

Although it may seem that 2017 is still a ways ahead, the liberalization of Latvia’s gas market is becoming a more and more topical matter for businessmen and consumers, experts say.

«At the Davos Forum, architecture of Latvia’s energy infrastructure was given 14th place, which put it ahead of our neighbouring countries. This success is not accidental – far-sighted decisions and targeted investments have made Latvia and energy independents and secure country. Our production plants provide energy security and serve as important market players in Latvia and Baltic States. We have formed an energy market with diversified supplies and growing competition and good connections in the international environment. By opening the gas market, we will be able to enhance our energy sector, acquire additional guarantee for independence and security in addition to better price offers and benefits for all consumers,» – notes Aris Zigurs, Chairman of Latvenergo.

Lower gas prices for households and businessmen

«Similarly to the electricity market, the gas price will be formed under influence of competition starting from 3 April 2017. It is expected that the price in Baltic States can come close to or equalize with prices in Western Europe, where wholesale natural gas price has been lower in comparison with our prices. Gazprom also offers lower prices there,» – admits Chairman of the Council of the Public Utilities Commission Rolands Irklis.

He allows that some of the electricity traders may start selling natural gas.

One of the biggest changes for consumers is related to the transition to natural gas inventory in energy units – MWh. This means changes for receipts. There is no need for an immediate change of gas meters, as it is possible to use equipment that measures energy units based on transmission and distribution system.

Lower electricity and heating price

The largest portion of electrical energy consumption was provided in Latvia by Riga TEC last year. Natural gas is used in production – 2,025 GWh of electricity was produced by Riga TEC in 2015. Reduction of gas prices contributes to the competitiveness of thermal power stations. This demonstrates the positive impact of the free market and the fact that synergy between electricity and gas market is beneficial to consumers.

If competition helps secure gas for better prices, electricity and heating costs of Riga TEC will become lower and thereby allow the production of more electricity at peak moments, protecting consumers from too high prices.

Thereby the liberalization of the gas market will only enhance the already central role in Baltic States.

The more suppliers, the more independent and secure everyone will be

The matter regarding the security of Baltic States’ energy security is basically resolved by modern gas power plants in Latvia – Riga TEC-1 and TEC-2. Their electricity interconnections allow the coordination and effective covering of state costs and also sell electricity at competitive prices and thereby secure better prices in the region, as the situation is described by Latvenergo’s Commercial Director Uldis Bariss.

Market liberalization in Latvia also means the entry of new suppliers to the market, increasing competition. The more suppliers enter the market, the more secure and independent the Baltic region will become.

Experts emphasize that Latvia still lacks a gas exchange. This is why the region’s wholesale trade will continue being influenced by long-term supply contracts. «We have to create conditions to help the market become more dynamic and sustainable to make it attractive for new suppliers,» – said Irklis.

Ref: 102.109.109.7522


Leave a reply

Week in Lithuania. Lithuania not affected by problems at Latvia's ABLV Bank

Financial problems faced by ABLV, one of Latvia's biggest commercial banks, will have no impact on the Lithuanian financial system, officials from the central Bank of Lithuania and the Lithuanian Banks' Association (LBA) said this week. According to Vytautas Valvonis, director of the central bank's Supervision Service, the Lithuanian financial system has become very independent in recent years.

BNN summary of the week: bank drama and complaints about government’s work

BNN offers a summary of this week’s topical news in a variety of categories: Announcement; Proposal; Threats; Concerns; Decline; Future.

Baltic States ask European Commission to maintain EU Cohesion Fund financially strong

Baltic finance minister ask the European Commission to keep the European Union’s Cohesion Policy financially strong and aim it towards results, BNN was told by Finance Ministry.

Police commence investigation on possible money laundering schemes at ABLV Bank

Latvia’s State Police has commenced an investigation about the possible money laundering operations at ABLV Bank, which were reported by Financial Crimes Enforcement Network (FinCEN) US Department of Treasury.

S&P Global affirms Latvia’s credit rating at «A-»

On Thursday, 22 February, S&P Global reaffirmed Latvia’s credit rating on the «A-» level, retaining a positive outlook for the future, as BNN was informed by the State Treasury.

Kristovskis: state officials should be equally strict to Lembergs and Rimšēvičs

«Lack of consistency – such a conclusion appears after looking at the behaviour of state officials in regards to their request for Ilmārs Rimšēvičs’ to step down as governor of the Bank of Latvia,» says Ventspils City Council member Ģirts Valdis Kristovskis.

LSRTC: Zaķusala TV Tower’s reconstruction will cost several dozen million euros

According to chairman of Latvia’s State Radio and Television Centre (LSRTC) Jānis Bokta, reconstruction of Zaķusala TV Tower will cost several dozen million euros.

Trade union worried teachers may not have time to prepare for new education content

Teachers may not have enough time to prepare to work with new education content, said manager of Latvian Education and Science Workers' Union Inga Vanaga in an interview to Rīta Panorāma programme of LTV.

Judins, Loskutovs, Čigāne and Dālderis to continue working in Unity’s faction

Saeima members Andrejs Judins, Aleksejs Loskutovs, Lolita Čigāne and Ints Dālderis will continue working in Unity’s faction and coalition.

Saeima supports member’s proposal to publish wages of Bank of Latvia employees

Latvia’s parliament has decided to support Ints Dālderis’ proposal to publish wages paid to employees of the Bank of Latvia, education institutions, as well as municipal capital associations.

More snow expected on weekends; air temperature to drop even more next week

On the night to Friday, 23 February, air temperature in most of Latvia declined to -21° C… -27° C. It was only warmer in Kurzeme and some parts of Vidzeme, as reported by Latvia’s State Environment, Geology and Meteorology Centre.

SEB Bank: more employment options will open up and workers will become more selective

«It is becoming easier to change jobs nowadays. The largest selection of employment options are found in regional centres and cities, especially Riga and Pieriga. We see fewer employment options in regions even though there is still considerable demand for workers there,» predicts SEB Bank’s macroeconomics expert Dainis Gašpuitis.

ABLV Bank’s manager claims the bank is ready for cancellation of payment restrictions

ABLV Bank is ready for cancellation of payment restrictions, said the bank’s chairman Ernests Bernis during a press-conference on Thursday, 22 February.

62.9% of Latvia’s population was employed in 2017

Compared to the year before, in 2017 employment rate grew by 1.3 percentage points and number of employed persons by 1.5 thousand. Employment rate among men grew faster than among women – by 1.6 percentage points and 1.0 percentage points, respectively. 894.8 thousand people or 62.9 % of Latvia population aged 15–74 were employed in 2017.

Lithuania and Latvia: the tale between two sisters marked with rivalry

Relations between Lithuania and Latvia, two tight-knit Baltic neighbours, may exemplify a sisterly relationship from the first sight, but just over the course of a single week, several pings rang, signalling that rivalry is, and has always been, a component of coexistence.

Lembergs unable to organize his private life because of intense court proceedings

Lembergs unable to organize his private life because of intense court proceedings

Unemployment level in Latvia decreased to 8.7% in 2017

85.4 thousand people aged 15–74 in Latvia were unemployed in 2017. Compared to 2016, the number of unemployed persons has dropped by 9.9 thousand or 10.4 %.

Council member: ECB is openly dissatisfied with restrictions imposed on Rimšēvičs

The European Central Bank (ECB) is openly dissatisfied with restrictions imposed on one of its council members – governor of the Bank of Latvia Ilmārs Rimšēvičs, said council member of the Bank of Latvia Edvards Kušners in an interview to 900 seconds programme of LNT.

Defence expenditures in Latvia planned at EUR 234 million in 2018

Latvian government plans to spend EUR 234 million on defence projects, including procurement of transports, ammunition, armaments and individual equipment, in 2018 as confirmed by Defence Ministry.

Ministry cancels mandatory procurement component permits for five CHP plants

Latvia’s Economy Ministry has made a decision to cancel the permit to sell electricity within mandatory procurement component for five other renewable energy co-generation plants plants: SIA Madonas Eko, SIA Eiro-Āzijas investment agency, SIA EVOKEM, SIA M Parks, and SIA Eco Latvis.

NSC proposes Maizītis for a second term as Chief of Constitution Protection Bureau

Members of Latvia’s National Security Council have decided to propose the current head of the Constitution Protection Bureau Jānis Maizītis for another term at the helm of this institution, as BNN was informed by the State President’s Chancellery.

Latvijas gāze’s subsidiary Gaso proposes reducing gas transmission price

Latvijas gāze’s subsidiary Gase has turned to Public Utilities Commission with a proposal for a new natural gas transmission system service’s tariff project, providing for a reducing gas transmission price by 18-46% for more than 95% gas consumers.

FCMC invites Bank of Latvia to provide ABLV Bank with yet another emergency loan

The Finance and Capital Market Commission (FCMC) has invited the Bank of Latvia to issue ABLV Bank another emergency loan.

Crime rate in 2017 was the lowest in Latvia’s history

Last year’s crime rate turned out the lowest in Latvia’s history, as reported by Prosecutor General Ēriks Kalnmeiers in his annual report.

LEC: government priorities should include searching for causes and solutions, not the guilty

Latvian Employers’ Confederation (LEC) is worried about ongoing events and their negative effect on the stability and future development of the country’s economy. LEC believes that stabilization of the financial situation requires careful coordination of actions between institutions and the government.