Entry into force of the amendments to the Rules of Use of the Natural Gas Transmission System

On August 15, 2019, the amendments of the Rules of Use of the Natural Gas Transmission System (hereinafter - Rules), as approved on July 25, 2019 by the decision 1/11 of the Board of Public Utilities Commission of Latvia, will enter into force.

Amendments set the obligation to the system user to submit nomination for the exit point for the supply of consumers of Latvia. Such obligation is the first step towards harmonisation of the national Rules with the principles of the common balancing zone of Estonia and Latvia, which will become effective from the January 1, 2020.

Amendments also foresee the rights of the network user to transfer its balance responsibility to other network user and accept such, and obligation to provide in advance information on transfer/acceptance of balance responsibility to the transmission system operator. Using such mechanism of aggregation of multiple network users’ balance portfolios, network user who acquired such extended balance responsibility will be able to optimise total imbalance position and imbalance costs using the inherent unpredictability of individual balance portfolios.

In addition, the amendments specify compliance criteria of the credit rating of the natural gas transmission system user and its affiliated company providing collateral. Rules now also foresee the rights of the affiliated company to issue guarantees for the proper performance of the collateral attributable to the natural gas transmission system user, as well as the right of the natural gas transmission system user to choose one or several types of collateral for the fulfilment of obligations.

Full text of amendments (in Latvian) can be accessed HERE.