The sixth year in market for all legal entities
Procedure for changing the seller
- The customer shall request the price offer from INTER RAO Latvia.
- A purchase agreement shall be entered into by the 15th date and afterward, the seller, INTER RAO Latvia, shall notify the distribution service provider JSC Sadales tīkls about the change of the seller that has taken place.
- On the 1st date of the following calendar month, you shall become the customer of LLC INTER RAO Latvia.
CONTRACTUAL CHANGES IN CONNECTION WITH THE MERCHANT
In order to allow a consumer to conclude a contract an electricity purchase agreement with the seller LLC INTER RAO Latvia, he concluded or must have a valid system service agreement with the distribution system operator JSC Sadales tīkls, or other system operators.
Stages of the electricity market liberalization
The first stage
started on 1 June 2007 when the consumers were offered the possibility to purchase electricity from independent electricity sellers licensed in Latvia.
Then, starting from April 1, 2012
all legal entities having at least one object connected to the middle or high voltage and/or with the input protection device nominal current of 101 amperes or more is obliged to purchase electricity on the free market for the agreed price.
As of 1 November 2012
all legal entities, irrespective their connection current, are obliged to purchase electricity on the free market.
On the last stage of opening the electricity market, commencement of which is planned for 1 January 2015,
not only legal entities but all individuals as well have to select independent electricity seller for themselves, thus becoming participants in the market.
ELECTRICITY MARKET PLAYERS
There are producers, transmission and distribution system operators as well as electricity sellers operating in the electricity market:
- power plants are dealing with electricity production and are selling their products on the wholesale market;
- the ones engaged in electricity transmission are the transmission system operator JSC Augstsprieguma tīkls and the distribution system operator JSC Sadales tīkls;
- companies that have been granted the seller’s license are dealing with electricity sales. They are purchasing electricity from the producers on the wholesale market or on the Nord Pool exchange and are selling it to consumers.
THE PRICE OF ELECTRICITY
The price of electricity is affected by many factors: the prices for the CO2 emission quotas, the prices of energy resources (oil, gas, and coal) on the global markets, the prices on the Nord Pool exchange as well as the water level in the Daugava and weather conditions.
The total costs of electricity are formed by 3 components:
- The price of electricity
You negotiate this price with the seller by entering into the electricity purchase agreement. (Collected by the electricity seller LLC Inter RAO Latvia).
- Mandatory procurement component
This compensates additional expenses of the public seller caused by purchasing electricity produced in cogeneration stations by using renewable resources. (Collected by the Your system operator).
- The charge for services of the system
This is set forth according to the tariff approved by the Public Utilities Commission that is the same for all consumers (Collected by the Your system operator).