Having reviewed the request by the JSC “Latvijas Gāze” to repeal and declare unlawful the resolution No.122 of the Public Utilities Commission (PUC) dated August 25, 2016, the Regional Administrative Court finds that the JSC “Latvenergo” is not eligible to receive natural gas from other traders before April 3, 2017. Hence, the JSC “Latvijas Gāze” is not obliged to ensure third-party access to the natural gas transmission and distribution infrastructure.
After facing illegitimate action by the PUC through attempts to open the natural gas market before April 3, 2017 contrary to the law, the JSC “Latvijas Gāze” twice addressed the PUC – first with a request to ensure the exclusivity of the JSC “Latvijas Gāze” in the Latvian market as stipulated by the Privatisation agreement signed on April 2, 1997 and, following its rejection, with a request for a temporary derogation owing to the possible financial risks for the company in the event of a premature opening of the natural gas market. The PUC rejected the request by the JSC “Latvijas Gāze” on both occasions.
Today the Administrative Regional Court ruled that all decisions by the PUC pertaining to the opening of the natural gas market before April 3, 2017 are contrary to the law, as the law stipulates that the natural gas market shall only be opened after the expiration of the Privatisation agreement. Thus, the PUC should have ensured the exclusivity of the JSC “Latvijas Gāze” in the Latvian natural gas market from the outset, disallowing supplies from other traders or sources. Furthermore, pursuant to the legislation, the JSC “Latvijas Gāze” does not need to address the PUC with a request for a temporary derogation owing to the possible financial losses.
The Regional Court disagrees with the PUC’s opinion that Section 110 of the Energy Law entitles final consumers to choose their trader already at present. According to the Regional Court, the PUC’s opinion that final consumers are eligible to choose their trader is contrary to both the facts indicated by the PUC itself and the Energy Law under a systemic review of the matter. Having analysed the provisions of the Energy Law, the Regional Court concludes that the legislator has explicitly stated both previously and currently that final consumers may only choose their trader as from April 3, 2017.
Vinsents Makaris Phone + (371) 67 369 144 E-mail: IR@lg.lv
