Government decides on the full ownership unbundling of the electricity transmission system operator

08-10-2019

On 8 October the Cabinet of Ministers decided to carry out full ownership unbundling of the electricity transmission system operator by 1 July 2020, by transferring all the electricity transmission system assets to the transmission system operator AS “Augstsprieguma tīkls” (AST). The assets intended for ownership unbundling include 330 kV and 110 kV transmission lines, equipment, engineering structures, and real estate associated with transmission assets.

 

All the assets of the electricity transmission system are currently owned by AS “Latvijas elektriskie tīkli” (LET), which will be transferred through reorganisation to the transmission system operator AS “Augstsprieguma tīkls” (AST), which will therefore also become the owner of the transmission system.

 

Full ownership unbundling will have a positive impact on the operation of the transmission system operator AST and will contribute to the possibilities of developing the transmission network. From the point of view of the implementation of energy policy, the introduction of a full ownership unbundling model is an effective step in the functioning of the transmission system, including the development of the electricity market and further integration into the EU.

 

AS “Latvijas elektriskie tīkli” is the subsidiary of AS “Latvenergo” established in 2011, which currently performs the functions of the transmission system owner. Since AS “Latvenergo” and AST are state-owned capital companies, the change of ownership of the assets is planned by reducing the share capital of AS “Latvenergo” in the form property by removing from the asset base of AS “Latvenergo” the capital shares of LET and by transferring them to the balance sheet of the Ministry of Finance as a holder of capital shares of AST. Following the transfer of LET shares to state ownership, the transmission assets will be invested in the form of LET capital shares in the share capital of AST by increasing the share capital of AST, which will result in LET becoming a subsidiary of AST.

 

TSO is responsible for the security of electricity supply, the reservation of electricity generation and interstate interconnection capacities and the management of energy flows, taking into account the exchange of electricity with other connected transmission systems, ensuring adequate transmission network capacity and stable operation of the system. When developing the transmission system, TSO is responsible for the planning, construction and commissioning of new transmission infrastructure sites. TSO also ensures the transportation of electricity flows from electricity producers and interstate connections to users (including distribution system operators) or transit in the territory of the Republic of Latvia.

Last update:    28-01-2020