JSC “Conexus Baltic Grid” submits the new draft transmission project

On 22 December JSC “Conexus Baltic Grid” submitted the new draft transmission project to the Public Utilities Commission (PUC) that is prudent, well considered and formed in accordance with the new situation in Latvia natural gas market.

The new tariffs are elaborated so that the payments from the natural gas transmission system users cover the economically justified service costs and ensure the profitability of transmission services. To promote the interests of market members about Inčukalns underground gas storage (Inčukalns UGS) and give the sellers to use more efficiently their stock in daily balancing, a discount of 100% is provided in the draft tariff in the interconnection with Inčukalns UGS.

The offered tariffs are the lowest in among the Baltic States and they promote the formation of liquid Baltic wholesale market.

On 1 July 2017 new transmission system service rates approved by PUC were enforced that were elaborated in accordance with Natural gas transmission system service tariffs calculation methods. Important changes in the natural gas normative acts and assumptions are made for operation in the new market situation that has caused costs not included in the approved tariffs.

In accordance with PUC Natural gas transmission system service tariffs calculation methods section 66, the system operator submits a draft tariff and the relevant costs for 12 months, information about the required revenues for the planned capacity booking during the tariff reporting period and information about the revenues of the previous calendar year from capacity booking services and common actual transmission system capacity booking service costs for consideration to the regulator to 1 February.

2017 was the first year of operation of JSC “Conexus Baltic Grid” when entry/exit capacities booking system introduction and transition from natural gas accounting volume capacity (m3) to accounting in energy units (kWh) was implemented concurrently with the natural gas market opening on 3 April 2017. JSC “Conexus Baltic Grid” is the natural gas market member responsible for the Latvian market area that is responsible for the operation, servicing, safety of energy transmission system and connection thereof with the transmission systems of other countries.

The submitted draft transmission tariff is available HERE .