The new natural gas transmission system tariffs are approved

On 18 June the Council of Public Utilities Commission (PUC) approved the natural gas transmission system tariffs presented by JSC Conexus Baltic Grid. The approved tariffs facilitate the use of Inčukalns underground gas storage because the new tariffs anticipate free entry to and exit from Inčukalns underground gas storage. It is planned that this facilitates more efficient use of the transmission system and ensures larger supply volumes of natural gas from the storage during winter. Lower tariff is anticipated to the external borders (for the entry point from the transmission system of another country and for the exit point to the transmission system of another country). But the transmission system service for supply of Latvian users will be 2.13 euro/MWh instead of former 1.99 euro/MWh.

The approved tariff comprises three different products – standard capacity products, products of interruptible capacity and products of interruptible virtual counterflow capacity in on annual, quarterly, monthly and daily basis. Tariffs of daily, quarterly, annual and current day products become effective on 19 July, but the monthly products – on 1 August.

The approved tariffs become effective on 19 July 2018. The new transmission system system tariffs are available HERE.

JAS Conexus Baltic Grid presented the draft transmission system tariff to the Regulator on 22 December 2017.

To find out the opinion of public service providers and users of natural gas, PUC arranged a listening meeting regarding the presented draft tariff on 26 January 2018. Representatives of JSC “Conexus Baltic Grid”, SIA “Deco Energy”, SIA “Enefit”, SIA “IP Systems”, AS “Latvenergo”, AS “Latvijas Gāze”, SIA “EG Energija” and AS “Gaso” participated in the listening meeting.

Natural gas transmission system tariffs are determined in the particular entry or exit point (for reservation of capacities) and they will be applied to users of natural gas transmission system that transport natural gas for the consumption in Latvia or that use the main gas pipe network for natural gas transit. 

JSC Conexus Baltic Grid as the unified natural gas transmission and storage operator was formed only in December 2016. Regulator, after having carefully assessed all presented documents and information, issued a licence to JSC Conexus Baltic Grid regarding he transmission and storage of natural gas for the following 20 years in January 2017 so that the system operator can provide the transmission and storage services.