PUC has approved the methodology regarding the calculation of natural gas transmission system services

Council of Public Utilities Commission (PUC) has approved the amendments in methodology regarding the calculation of natural gas transmission system services – procedure how natural gas transmission system tariffs are calculated and determined in Latvia. The amendments are related with the duty prescribed for system operator – JSC Conexus Baltic Grid – to ensure a specific annual amount of natural gas in Inčukalns Underground Gas Storage that is to be used during an energy crisis [1]. Amendments in the methodology are approved after consulting the market players.

Considering the liabilities prescribed for implementation of energy supply safety, the Regulator prepared amendments in the methodology regarding the calculation of natural gas transmission system services. Amendments in the methodology prescribe that the costs for provision of natural gas supply related with the obligation to provide the natural gas removal capacity from Inčukalns Underground Gas Storage during an energy crisis are included in the following tariffs reviewing cycle according to the actual costs of the previous calendar year. The methodology is also supplemented that costs related with the provision of natural gas in the interconnection of transmission system with Inčukalns Underground Gas Storage as to 1 March 2018 shall be recovered within two years to ensure the predictability of transmission tariffs for the following years.

Before approving the amendments in methodology, the Regulator announced the public consultation during which suggestions were presented by JSC Conexus Baltic Grid and UAB “Lietuvos dujų tiekimas”. Having assessed the received suggestions, part of then were taken into account and the draft amendments of methodology was supplemented. More about the opinions received during the consultation period available Summary of suggestions and comments.

Methodology regarding the calculation of natural gas transmission system tariffs prescribe the procedure how natural gas transmission system tariffs are calculated and determined in Latvia. Amendments in methodology become effective soon – on the following day after the publication in the official magazine “Latvijas Vēstnesis”.