On Tuesday, the 11th of April, passed amendments to the Electricity Market Law that provide for prohibiting electricity trade deals with Russia and Belarus. Amendments also set a mandatory market revenue ceiling – 180 EUR/MWh – for electricity producers.
Representative of the Ministry of Climate and Energy Beāte Barkāne explained that the Russian-Ukrainian war caused prices to surge in all of Europe and created challenges for security of Baltic energy supplies.
“International sanctions were imposed as a result of this. These sanctions prohibit the continuation of financial cooperation with numerous companies registered in the Russian Federation.
The Electricity Market Law is also expanded in accordance with the situation, prohibiting electricity trade with Russia and Belarus.
The law also prohibits supplies of electricity using Russian and Belarusian energy systems,” said Barkāne.
At the same time, the legislative draft also states that the distribution system operator is allowed to perform balancing energy exchange with the Russian system operator or trader using Russian power networks in order to ensure balancing for Latvia’s system until the country joins the continental Europe’s network.
“It is also stated that the volume of energy received from the Russian operator or trader can be higher than the volume provided to the Russian operator or trader to balance their system,”
said Barkāne.
To reduce the effect from high energy prices and ensure the crisis does not have an impact on users and the economy while also preserving fiscal sustainability, the Electricity Market Law now lists a ceiling on revenue at 180 EUR/MWh. This will remain in force between the 1st of December 2022 until the 30th of June 2023.
Regulations will apply to all energy producers registered with the electricity producers register, except for producers that generate electricity from bio-methane or natural gas and those that will have sold electricity for a price that exceeded 0.180 euros per 1 kWh between the 1st of December 2022 and the 30th of June 2023.
Amendments are now the responsibility of the Saeima.
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