Energy, EU – Baltic States, Gas Market

In general, Latvia will support the Commission's proposal and only object against the electricity market liberalization, Gerhards explained the committee's members. The Saeima European Affairs Committee approved Latvia's official position that will be presented at a meeting of European Union transport, telecommunication and energy ministers on February 28.

 

The energy market liberalization plans offered by the Commission is the only right way to guarantee sustainable development of the EU energy market and security of energy supplies, Gerhards stressed. Gerhards said that he had discussed these matters with EU Energy Commissioner Andris Piebalgs on February 25, and the Commission's arguments for energy market liberalization presented by Piebalgs were convincing.

 

This is why Latvia will fully support the Commission's proposals regarding separation of natural gas production and distribution networks, Gerhards said. Latvia will also support applying these requirements to third countries' companies doing business in the EU, or the so-called Gazprom clause.

 

Nevertheless, taking into account the specific situation on the Latvian gas market, Latvia will claim a transitory period for separation of the distribution network until 2017, when Latvijas Gaze's (Latvian Gas Company) exclusive rights will expire.

 

Latvia will not support another initiative of the Commission regarding separation of electricity production and distribution networks. There are several aspects why Latvia must be very careful with this proposal, Gerhards said at the Saeima committee's meeting.

 

The Commission's proposal does not fit in with the specific situation in Latvia and it will not improve the situation on the electricity market. It must be taken into account that Latvia's electricity market is isolated from the rest of Europe. Besides, it is very important that the market liberalization proposal does not lead to privatization of Latvenergo, stressed Gerhards.