JSC Conexus Baltic Grid approves part of the offers presented in version 2 of auction

The auction regarding the storage of active natural gas volume and provision of availability in the storage in 2018-2019 announced by JSC Conexus Baltic Grid on 6 August 2018 is completed.

After agreeing with the Public Utilities Commission (PUC), the Board of the company today on 16 August, considering the instructions of PUC, decided to approve part of the bids submitted within version 2 of auction. The approved auction results correspond to 2/3 of the required natural gas volume that the transmission system operator is obliged to ensure in accordance with Cabinet Regulations No. 312 “Procedures for the Supply of Energy Users and Sale of Heating Fuel During Declared Energy Crisis and in Case of Endangerment to the State” of 19 April 2011 article 12.1 (hereinafter – Cabinet Regulations).

Zane Kotāne, Chairperson of the Board of JSC Conexus Baltic Grid: “The Board of the company is obliged to take care of company’s operation and not to permit losses that are binding to company’s shareholders. Considering the experience of previous year with non-recognition of full auction costs and PUC instructions, the Board decided to approve part of the submitted bids the costs whereof at the opinion of PUC are economically and technologically substantiated.”

JSC Conexus Baltic Grid as the transmission system operator has the obligation to ensure, in accordance with Cabinet Regulations, that from beginning of removal season till March 1 3.16 TWh natural gas is located in Inčukalns Underground Gas Storage that is used to provide the consumption of Latvia in case of energy crisis. Considering that currently the company fails to fulfil completely the binding Cabinet Regulations, the Board of the company asks PUC to agree measures to provide the lacking volume.