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Text consolidated by Tulkošanas un terminoloģijas centrs (Translation and Terminology Centre) with amending laws of:
3 August 2000;
10 May 2001;
17 March 2005;
26 May 2005.
If a whole or part of a section has been amended, the date of the amending law appears in square brackets at the end of the section. If a whole section, paragraph or clause has been deleted, the date of the deletion appears in square brackets beside the deleted section, paragraph or clause
The Saeima1 has adopted and
the President has proclaimed the following Law
Energy Law
Chapter I
General Provisions
Section 1.
The following terms are used in this Law:
1) energy - within the meaning of this Law: goods of specified value – acquired electricity or heating energy, as well as gas;
2) energy supply - commercial activities to be performed in the energy industry sector that require a licence and that include the generation of electricity or heating energy, the purchase, conversion, storage, transmission, distribution or marketing of electricity, heating energy or gas;
3) energy supply merchant – a licensed merchant, which is engaged in energy supply;
4) facility of an energy supply merchant – property belonging to an energy supply merchant or in the use thereof (buildings, constructions, plants, equipment, devices, systems, networks, lines and accessories thereof) which is directly utilised for energy supply;
5) energy efficiency – the level of efficient energy utilisation manifested as a proportion of the type and quality of end products, and energy consumption;
6) energy resources – noted fuel supplies and energy sources which may be utilised for the direct use or acquisition of energy;
7) [17 March 2005]
8) secondary energy resources – energy resources resulting from any type of technological processes as a by-product, also non-utilised energy in the technological process that is suitable for further utilisation;
9) local energy resources – renewable energy resources and fuel stocks assessed in Latvia that may be utilised for direct use or the acquisition of energy;
10) a user of energy – a natural or legal person who purchases and consumes a particular type of energy or fuel from an energy supply merchant for his or her needs or uses it in energy supply or in another type of entrepreneurial activity;
11) transmission of energy – a type of energy supply that incorporates the transportation of energy across high-voltage networks or high-pressure mains in order to supply such energy to the relevant distribution system or directly to users, except for the marketing of energy;
12) distribution of energy – a type of energy supply that includes transportation of energy resources or energy on medium and low voltage networks or high, medium and low pressure mains, except for the marketing of energy;
13) marketing of energy – type of energy supply that incorporates the purchase selling of energy and selling to energy users;
14) generation of energy – a type of energy supply that incorporates the conversion of energy resources into energy necessary for use;
15) [17 March 2005]
16) fuel – petroleum and petroleum products, natural gas, liquefied gas, oil shale, oil shale gas and oil, coal, peat, fuel wood and other biomass, nuclear fuel combusted for the acquisition of energy;
17) fuel security reserve – a specific stock of fuel in the ownership of a merchant that is necessary in order to ensure the continuous supply of energy users with the relevant type of energy;
18) licence – a special permit issued in accordance with the law that determines the rights and duties of an energy supply merchant to engage in energy supply in the territorial area of the licence;
19) area of operation of a licence – a territory specified in the licence in which the specific energy supply merchant and user of energy is entitled to operate;
20) regulator – a state or local government institution that regulates energy supply in accordance with the law;
21) horizontal integration – an energy supply merchant or group of companies, which performs at least one of the energy generation, transmission, distribution, supply or storage of natural gas functions and an activity, which is not associated with energy supply;
22) vertical integration – an energy supply merchant or group of companies, which performs at least one of the following types of energy supply: transmission or distribution or storage of natural gas and at least one of the following types of energy supply: energy generation or marketing;
23) system operator – an energy supply merchant who fulfils the transmission or distribution or storage of natural gas functions and is responsible for the operation of the system, ensuring maintenance and if necessary – the development of such system in a specific territory, as well as the mutual interconnection of the system with other systems and for ensuring the long-term capability of the system to ensure justified requirements in relation to the transportation and storage of energy;
24) renewable energy resources – wind, sun, geothermal, tidal, and water energy, waste landfill site and sewage treatment plant gas and biogas, and biomass [biologically degradable fraction in products, industrial and household waste, agricultural (including substances of plant and animal origin), as well as forestry and similar sector production residual materials];
25) system user – a natural person or legal person, who utilises the energy transmission or distribution system or storage of natural gas services;
26) mutually interconnected system – several systems, which are mutually interconnected;
27) fixed payment volume contract – a contract in which is included an agreement between the purchaser and seller that in the case if the purchaser does not wish to receive all the volume of the goods specified in the contract, he or she shall pay for all of the volume of the goods specified in the contract;
28) direct line – a natural gas pipeline, which supplements the mutually interconnected natural gas transmission systems;
29) transmission system – an energy transmission network with all the necessary energy supply merchant objects for the performance of the transmission function, which are utilised for the transportation and distribution of energy;
30) distribution system – an energy distribution network with all the necessary energy supply merchant objects for the performance of the transmission function, which are utilised for the transportation and distribution of energy;
31) network – an aggregate of lines and equipment, which are necessary for the transportation of energy. A street lighting system is a separate, with an aggregate of lines and equipment technically separated by accounting measuring equipment, which is utilised for the lighting of streets, squares and territories intended for public use and which is not utilised for the transport and distribution of electricity to other energy users;
32) autonomous producer – a merchant, natural person or legal person, which generates electricity or heating for the purpose of consuming it for personal needs;
33) independent producer – an energy supply merchant, which generates electricity or heating, but does not perform the distribution or transmission thereof in the system in which it is included;
34) system – all transmission and distribution networks and storage facilities, which belong to a natural gas supply merchant and which he or she operates, as well as the equipment which belongs to such merchant, which ensures ancillary services, and merchants, the services of which are necessary in order to ensure access to transmission and distribution;
35) ancillary services – all services, which are necessary in order to ensure access to transmission and distribution networks and storage facilities or to operate such networks and facilities, including balancing, except facilities, which are utilised only by transmission system operators;
36) balancing – a continuous process, which ensures a permanent balance between the energy input into the system and energy consumption;
37) international connection – an energy transmission line, which connects transmission systems located in separate states;
38) final user – a user of energy, who buys energy for use for personal needs (final consumption);
39) household user – an final user, who buys and uses energy in his or her own household for personal needs (final consumption), except for the needs of commercial activities or other forms of professional needs;
40) associated user – an energy user, who does not utilise the possibility to become a market participant in order to freely choose an energy trader; and
41) trader – a user, who purchases and sells (supply – in the sense of sell) energy to other energy users.
[10 May 2001; 17 March 2005; 26 May 2005]
Section 2.
This Law regulates the energy industry as an infrastructure of the economy that covers the acquisition, utilisation of energy resources and generation, purchase, conversion, storage, transmission, distribution, supply of various types of energy to energy users and the consumption of energy resources, as well as prescribes the transmission procedures within the energy industry and the principles for the organisation and development of the activity of energy supply merchants.
[26 May 2005]
Section 3.
In order to provide the national economy and population with electricity, heating energy and gas in the quality specified and quantity demanded, as well as to promote the integration of Latvia in the international market for energy materials and products, the attraction of investments and privatisation in energy industry, the development of energy supply and increase of energy efficiency, the purpose of this Law is:
1) to ensure effective use of energy and increase the efficiency of energy supply balancing energy consumption;
2) to provide energy users with continuous, safe, qualitative energy supply diversifying the types of fuel to be utilised, increasing the safety of energy supply and improving the distribution and supply of energy;
3) to create favourable conditions for the utilisation of local, renewable and secondary energy resources and diversifying of imported energy resources;
4) to promote the development of the energy market and transit as well as the modernisation of infrastructure and the openness, transparency and incrementation of the determination of prices and tariffs;
5) to guarantee the rights of energy users to choose the type of energy to be consumed;
6) to establish a productive environment for investments;
7) to promote economically justified competition; and
8) to promote the friendly impact of energy industry on the environment and the utilisation of environment friendly technologies.
[10 May 2001; 17 March 2005]
Section 4.
Energy policy is a part of the national economy policy and a strategy for implementation thereof shall be determined by the Cabinet in the National Energy Programme of Latvia which shall be developed for 15 years and corrected regularly – every five years – on the basis of scientific surveys, changes in the national economy and development thereof, as well as taking into account the international factors that affect the energy industry and energy supply in the State.
Chapter II
Licensing of Energy Supply Merchants and Operation Thereof
Section 5.
(1) Energy supply merchants are regulated merchants which in accordance with requirements specified in a licence shall ensure safe, continuous and stable supply of existing and potential energy users with electricity, heating energy, gas or other type of energy and fuel in economically justified quantity and quality in conformity with environment protection conditions. The operations of energy supply merchants shall be regulated in accordance with the Law On Regulators of Public Utilities.
(2) [17 March 2005]
[10 May 2001; 17 March 2005; 26 May 2005]
Section 6.
(1) In the area of operation of its licence and within the time period specified in the licence, a system operator has a permanent obligation to ensure for system users and applicants access to energy transmission or distribution systems or natural gas storage sites if such access is permanently compatible with appropriate technical regulations and safety requirements.
(2) The specified obligations of a system operator shall be retained if there is a change of shareholder (stockholder) of the capital company, the form of commercial activity, a reorganisation is performed or in cases where a new licence is necessary, up to the receipt thereof.
(3) An energy supply merchant, which supplies energy to associated users shall sell energy to them in the necessary or specified quality and the quantity demanded at the tariff specified by the regulator or for tariffs, which have been specified by the relevant service provider in accordance with the tariff calculation method specified by the regulator if a permit has been obtained from the regulator.
[26 May 2005]
Section 7.
(1) A licence shall be issued by the regulator in accordance with the Law on Regulators of Public Utilities.
(2) A licence for the generation, transmission, distribution of energy and gas storage shall be issued for 20 years, but for marketing – for five years.
[10 May 2001; 26 May 2005]
Section 8.
The licence issued to an energy supply merchant shall specify:
1) the type of energy supply to be performed and the ensuring of the necessary safety requirements thereof;
2) the area of operation of the licence as a geographical territory;
3) the term of the licence;
4) the duty of the energy supply merchant to ensure and maintain the objects necessary for the provision of energy supply;
5) the conditions for environmental protection (ecological expert-examination);
6) the amount of fuel security reserve specifying the types of fuel and the duty of the energy supply merchant to retail fuel during an energy crisis upon request from the State or local government energy crisis centre in accordance with the procedures determined by the Cabinet;
7) the duty of an energy supply merchant to perform planned development of operations thereof and to participate in the planning, provision and development of co-ordinated and efficient energy supply;
8) the duty of an energy supply merchant to regularly provide the regulator with information regarding the operation thereof and changes in energy supply.
[26 May 2005]
Section 9.
(1) Energy supply merchants shall ensure compliance with the safety requirements prescribed and the conformity of qualifications of employees, as well as the energy quality conforming to technical regulations, regulator specified quality requirements and contractual conditions in conformity with energy quality, and the continuous operation of their objects and the appropriate technical condition thereof up to the boundary of energy users object ownership mutually determined.
(2) Energy users shall ensure the technical service and maintenance of the existing network, and energy utilisation devices and equipment, which are in the ownership, possession or use thereof.
[26 May 2005]
Section 10.
Once a year energy supply merchants shall submit a report to the regulator regarding accomplished and planned activity, as well as provide the regulator with information in accordance with the Law On Regulators of Public Utilities.
[10 May 2001; 26 May 2005]
Section 11.
Procedures for the restructuring of energy supply merchants and the termination of operation thereof shall be prescribed by the Law On Regulators of Public Utilities.
[10 May 2001; 26 May 2005]
Section 12.
(1) In order to ensure the purchase, generation, transmission, distribution and marketing of energy, energy supply merchants may operate horizontally or vertically integrated or individually, receiving a licence for each type of energy supply.
(2) Energy supply merchants who operate horizontally or vertically integrated, shall compile in their internal accounting a balance sheet, profit and loss calculation and a cash flow statement separately for each type of licensed energy supply – similarly as if with every type of licensed energy supply operated a separate merchant.
(3) The balance sheet, profit and loss calculation and cash flow statement compiled according to the procedures specified in Paragraph two of this Section, shall submitted by the energy supply merchant to the regulator not later than one month after the approval, according to the procedures specified in the Law On Annual Accounts of Undertakings, of the annual accounts.
(4) The regulator shall determined the procedures by which an energy supply merchant shall ensure the public accessibility by users to the balance sheet, profit and loss calculation and cash flow statement compiled according to the procedures specified in Paragraph two of this Section and other financial information.
[10 May 2001; 26 May 2005]
Section 13. [26 May 2005]
Section 14.
(1) Energy supply merchants may operate in a transmission system, distribution system or central heating supply system.
(2) In order to ensure the safe and effective operation of a mutually interconnected system, energy supply merchants shall exchange the necessary information, at the same time ensuring the protection of commercial secrets.
[10 May 2001; 26 May 2005]
Section 15.
(1) Merchants in whose ownership or possession are energy transmission, distribution or natural gas storage objects shall select relevant transmission system, distribution system or natural gas storage system operators. A natural gas supply merchant may establish a unified natural gas transmission, distribution and storage system operator.
(11) A system operator shall provide transmission, distribution and natural gas storage services for the tariffs specified by the regulator or for tariffs, which have been specified by the relevant service provider in accordance with the tariff calculation method specified by the regulator if a permit has been obtained from the regulator. The regulator according to specified procedures shall publish distribution, transmission and storage service tariffs prior to their coming into effect.
(2) System operators shall ensure that the performance of additional services necessary for system operation and the fulfilment of functions of the system operator is entrusted to applicants who may perform such additional services in the necessary quality and for lower costs guaranteeing the safety and stability of the operation of the system.
(3) System operators are not entitled to perform such activities that are not directly related to their duties and may hinder or endanger the fulfilment of such duties.
(4) System operators are not entitled to disclose commercial information, which has become known to them in fulfilling their duties. Energy supply merchants shall determine the contents of commercial and confidential information by co-ordination thereof with the regulator.
(5) A system operator who has received a request from system users or applicants to provide information regarding access to the system and use thereof, shall provide such information in written form within a period of 30 days. The system operator has the right to request from the system users or applicants the necessary information for the development of use regulations.
(6) A system operator is liable for the operation, service and safety of the energy transmission or distribution systems or the natural gas storage site, as well as for the long-term capability of the system to ensure the appropriate demand for energy transmission or distribution or natural gas storage.
(7) The regulator shall approve the use regulations or natural gas storage site use regulations developed by the system operator, which shall be objectively based, economically justified, fair, equal, transparent and accessible to all system users and applicants who request access to the relevant system. The system operator shall submit proposals to the regulator in a time period specified by the regulator regarding the system use regulations or natural gas storage site use regulations.
[26 May 2005]
Section 16.
(1) [26 May 2005]
(2) An autonomous generator may also sell the surplus of electricity or heating energy generated also to other energy users utilising services of such a system operator for payment in the area of operation of the licence of which the generator is located, or sell this energy surplus to the system operator.
(3) If such is permitted by the technical capabilities of the transmission or distribution system, the system operator in the area of operation of the licence shall provide the autonomous generator with a possibility to transmit or distribute the surplus of the electricity or heating energy generated in order to sell it to other energy users.
[26 May 2005]
Section 17. [26 May 2005]
Chapter III
Restrictions of Rights to the Use of Immovable Property because of Location of Facilities of an Energy Supply Merchant Therein
Section 18.
Heating energy and gas supply equipment, as well as electricity supply installations which are located inside buildings and constructions and which are utilised only for the supply of such buildings and constructions with heating energy, gas or electricity, except for control apparatus and meters installed by the energy supply merchant, are auxiliary properties of the main properties – such buildings and constructions, and all expenses related thereto must be covered and burdens must be fulfilled by the owner or possessor of the main property.
[26 May 2005]
Section 19.
(1) In accordance with Section 24 of this Law, an energy supply merchant has the right to utilise any land for a single payment to the owner thereof for the installation of new facilities of the energy supply merchants.
(11) An energy supply merchant has a duty to co-ordinate the installation conditions of a new energy supply object with the owner of the land, as well as the right to substitute the co-ordination procedure with the informing of the owner of the land in cases, if the land is utilised for the installation of a new energy supply merchant object-facility, device, installation, network, line and the accessories thereof if at least one of the following conditions is in effect:
1) the installation of the energy supply merchant object is provided for in the territorial local government’s spatial plan or detailed plan;
2) the energy supply merchant object is installed within the red line boundaries;
3) the territorial local government has found that in the public interest the installation of the new energy supply merchant object or the utilisation of the existing object or the parts thereof are not possible without the utilisation of such land; and
4) in other cases specified by law.
(12) An energy supply merchant has the right to perform the reconstruction or modernisation of any of its objects, informing the landowner in a timely manner regarding this. The landowner is entitled to a once-only payment in accordance with Section 24 of this Law if as a result of the reconstruction the energy supply merchant object or the area of the land taken up by the protection zone around or along such object increases.
(2) The owner of a building may not prohibit the use of the building”s façade, the basement under the building, and the attic areas of the building for the erection, installation, operation and development of cables, lines and other equipment.
(3) An energy supply merchant shall warn the owner of the immovable property regarding the installation of a new object or the enlargement of an existing object within a time period of 30 days prior to the commencement of work.
(4) A facility of an energy supply merchant – the immovable property necessary for the construction of buildings and constructions, as well as for the arrangement of demarcated territories may be alienated in accordance with the procedures determined by the Law On the Compulsory Alienation of Immovable Property for State or Public Needs.
(5) The installation of facilities of the energy supply merchant in protected nature territories shall be co-ordinated with the State environmental protection authorities and the administrative institution of the protected nature territory, but in cultural monuments, protective zones thereof or cultural heritage territories – with the State Inspection for Heritage Protection.
[26 May 2005]
Section 19.1
(1) An energy supply merchant has immovable property servitude rights to install, develop and operate energy supply undertaking objects.
(2) The servitude rights shall be realised by mutually agreeing with the owner of the immovable property. If the parties cannot agree, the servitude shall be founded by a court judgment according to the procedures specified in regulatory enactments.
[26 May 2005]
Section 20.
Strategically important energy supply facilities – the underground part of underground gas storage sites – shall be retained as State property. These may not be utilised as a pledge for the receipt of credits, except for cases when the credit is taken for the renovation or modernisation of such facilities.
[3 August 2000]
Section 20.1
(1) Being a national economy object of State importance, the stock company Latvenergo shall not be privatised. All stocks of the stock company Latvenergo are the property of the State, and they are not to be privatised or alienated.
(2) The Pļaviņi, Ķeguma and Rīga hydroelectric power plants on the River Daugava, the Rīga 1 and 2 thermal power plants, electricity transmission networks, and existing electricity distribution and telecommunications networks, and equipment in the ownership of the stock company Latvenergo may not be utilised as a pledge for the provision of credit or the securing of other liabilities, and these objects as not to be privatised property may be transferred and be the property or in the possession of only such a capital company where all the capital shares are the property of the stock company Latvenergo and which may not be privatised or alienated.
(3) If the stock company Latvenergo is reorganised, the newly established holder of the right shall be a successor in rights and obligations of the stock company Latvenergo and the provisions referred to in Paragraph one and two of this Section shall apply thereto.
[3 August 2000; 17 March 2005]
Section 21.
The operational and safety protective zones around and along energy supply facilities shall be determined in the Protective Zones Law.
Section 22.
Energy supply merchants shall have the right of first refusal and pre-emption to facilities necessary for the performance of energy supply, including buildings, constructions, systems, devices, equipment, networks, pipelines and other facilities which are not the property of the energy supply merchants, but which are found on the balance sheet of the energy supply merchant or located in the territorial area of the licence of the relevant energy supply merchant.
[10 May 2001; 26 May 2005]
Section 23.
(1) The owner or possessor of the immovable property may not damage or modify the energy supply facilities located in his or her immovable property, or to perform activities that would hinder the supply of other energy users.
(2) The relocation of existing facilities of the energy supply merchant upon a justified request of an owner of the immovable property shall be performed at his or her expense.
(3) An owner or possessor of the immovable property shall ensure the personnel of the energy supply merchant the possibility to access the existing objects of the energy supply merchant located in the relevant property, also in a restricted area, closed territory or building, in order to perform reconstruction, renovation to such objects or work related to the operation thereof. The owner shall be notified regarding the necessity for repairs or other work at least three days prior to the commencement of such work, but in the event of an emergency the elimination of the consequences thereof may be commenced without prior notification of the owner, if it is not possible to do so.
[26 May 2005]
Section 24.
(1) An energy supply merchant shall compensate losses to the owner of immovable property that are directly related to the installation of new objects of the energy supply merchant or ensuring the operation and repair of the existing objects.
(11) An energy supply merchant shall compensate the owner of immovable property for the alienation or restriction of use rights of the land property if:
1) the property is utilised for the installation of a new object of the energy supply merchant or the reconstruction of an existing object; and
2) the object of the energy supply merchant or the area of the land taken up by the protection zone around or along such object increases.
(12) The calculation of the compensation and the procedures for payment shall be determined by the Cabinet.
(2) If an object of the energy supply merchant is liquidated or relocated, the immovable property shall be put in order in conformity with the previous state thereof or the work necessary for such order shall be compensated.
(3) A local government and an energy supply merchant may agree to the transfer of the street lighting network into the possession or ownership of the relevant local government.
[10 May 2001; 26 May 2005]
Chapter IV
Electricity Generation and Transmission [17 March 2005]
Section 25. [17 March 2005]
Section 26. [17 March 2005]
Section 27. [17 March 2005]
Section 28. [17 March 2005]
Section 29. [17 March 2005]
Chapter V
Electricity Distribution [17 March 2005]
Section 30. [17 March 2005]
Section 31. [17 March 2005]
Section 32. [17 March 2005]
Chapter VI
Access to Electricity Transmission and Distribution Systems [17 March 2005]
Section 33. [17 March 2005]
Section 34. [17 March 2005]
Section 35. [17 March 2005]
Chapter VII
Marketing of Electricity [17 March 2005]
Section 36. [17 March 2005]
Section 37. [17 March 2005]
Section 38. [17 March 2005]
Section 39. [17 March 2005]
Section 40. [17 March 2005]
[10 May 2001; 17 March 2005]
Section 41. [17 March 2005]
[10 May 2001; 17 march 2005]
Chapter VIII
Gas Supply System
Section 42.
(1) All natural gas users have the right to freely choose a natural gas trader.
(2) Final users who have a connection to a transmission system have the right to change traders without restrictions, notifying beforehand the trader and the transmission system operator of this. The period of notification shall be determined in the trading contract, the user and trader mutually agreeing.
(3) Final users who have a connection to a distribution system have the right to change traders taking into account the following conditions:
1) at least three months prior to such change shall notify in writing the trader with which he or she has entered into a contract regarding natural gas trading; and
2) at least three months prior to such change shall notify in writing regarding change of trader the system operator to which network the final user is connected.
[26 may 2005]
Section 42.1
(1) The supply of gas to energy users shall be ensured by natural gas supply system energy supply merchants and liquefied gas supply undertakings. The procedures by which energy supply merchants supply and energy users use gas shall be determined by the Cabinet.
(2) The natural gas supply system includes high-pressure gas transmission system pipelines (with a working pressure over 1.6 megapascals), ancillary objects, articles and other property, which are necessary for gas transmission, gas storage sites and gas distribution networks (with a working pressure over 1.6 megapascals), ancillary objects, articles and other property, which are necessary for gas distribution up to the boundary of energy users ownership mutually determined.
(3) Natural gas distribution, transmission and storage system operators shall ensure for all system users and applicants, who so request, equal and transparent access to the relevant system, providing them with natural gas transmission, distribution or storage services.
(4) A natural gas system operator has the right to justifiably refuse access to the relevant system according to the procedures specified in the Law On Regulators of Public Utilities in the following cases:
1) the system capacity is insufficient;
2) the duties and obligations specified by the regulator shall not be fulfilled;
3) the long-term (10 years or more) energy supply contractual obligations shall not be fulfilled; or
4) the regulator has taken a decision in the cases specified in Section 45.3 of this Law regarding the granting of temporary derogation.
[26 May 2005]
Section 42.2
(1) A natural gas supply energy user is entitled at his or her own cost to install and utilise a direct line, which is not included in the natural gas supply system from any mutually connected system. In constructing and operating a direct line the same requirements in relation to safety and quality shall be observed as are specified in the system access and use regulations or natural gas storage site use regulations approved by the regulator referred to in Section 15, Paragraph seven of this Law.
(2) Energy supply merchants may perform supply to all natural gas users, except associated users, utilising direct lines. The regulator shall determine the criteria and procedures by which direct lines are installed and used. For the installation of direct lines a permit from the regulator is necessary.
[26 May 2005]
Section 43.
(1) A natural gas transmission system operator in addition to the provisions specified in Section 15 of this Law shall ensure:
1) the operability of the natural gas transmission system, and the technical operation and development thereof;
2) the supply of natural gas to the distribution system in conformity with a justified request from the natural gas distribution system operator;
3) the management of natural gas flows in the natural gas transmission system in conformity with the technical capabilities of the system and in accordance with non-discriminating conditions for receipt of natural gas from foreign states and transportation to foreign states; and
4) the localisation and elimination of potential accidents of the natural gas transmission system in the system.
(2) If a natural gas transmission system operator is in the structure of a vertically integrated energy supply merchant, such operator shall be a separate capital company with independent legal person status and separated from natural gas trading or other types of commercial activities (which are not energy supply).
(3) To ensure the independence of the natural gas transmission system operator referred to in Paragraph two of this Section, the following conditions shall be observed:
1) persons who are responsible for the management of the natural gas transmission system operator may not become involved in the integrated natural gas merchant’s structures, which directly or indirectly are responsible for natural gas distribution and trade;
2) appropriate measures shall be performed in order to ensure that persons, who are responsible for the management of the natural gas transmission system operator may act independently;
3) the natural gas transmission system operator has the right to take decisions independently of the vertically integrated energy supply merchant in relation to assets, which are needed for the operation, maintenance or development of the natural gas transmission network. This shall not prohibit the vertically integrated energy supply merchant from establishing relevant co-ordination mechanisms in order to ensure the protection of the economic rights of the dominant merchant in relation to the return on the existing assets at the disposal of dependent merchants; and
4) the natural gas transmission system operator shall develop a conformity programme in which is described the measures, which have been performed in order not to permit discriminatory actions, and which ensure appropriate control over the observation thereof. The programme shall provide for the duties of concrete employees, which are to be performed in order to achieve this goal. The natural gas transmission system operator shall submit to the regulator an annual report regarding the measures performed and such report shall be communicated to the public on his or her Internet homepage.
[26 May 2005]
Section 43.1
(1) A natural gas transmission system operator shall prepare a transmission system and consumption conformity and State natural gas supply safety evaluation report for a time period up to 10 years. The evaluation report shall include at least a natural gas demand forecast for a 10-year period, supply and consumption conformity evaluation for the accounting period and forecast for a 10-year period, information regarding the conformity of the transmission system to demand and the maintenance quality thereof, as well as information regarding transmission capacity to be constructed and planned and measures, which shall be implemented in the case of maximum demand and in the case of one or more supplier short-fall.
(2) The transmission system operator evaluation report shall be submitted annually to the Ministry and the regulator. The Cabinet shall determine the procedures by which the transmission system operator develops and submits to the Ministry and the regulator the evaluation report, and the requirements in relation to the contents of the evaluation report.
(3) For the preparation of the evaluation report, the natural gas transmission system operator is entitled to request and receive necessary information from all the system participants.
[26 May 2005]
Section 44.
A natural gas storage site operator in addition to the provisions specified in Section 15 of this Law shall:
1) ensure operability of the natural gas storage site, and the technical operation and development thereof in order to perform the accumulation, storage and delivery of natural gas in conformity with technical capabilities;
2) store the reserves of natural gas belonging to individual energy users at the expense of such users if this is permitted by the technical capabilities of the natural gas storage site; and
3) organise the localisation and elimination of potential accidents in at a natural gas storage site.
[26 May 2005]
Section 45.
(1) In addition to the provisions specified in Section 15 of this Law, a natural gas distribution system operator shall be responsible for:
1) the operability of the natural gas distribution system, and the technical operation and the development thereof;
2) the receipt of natural gas from a natural gas transmission system operator and transportation to energy users;
3) the localisation and elimination of potential accidents in the natural gas distribution system and emergency service; and
4) the provision of information to energy users regarding conditions to be complied with in order to connect to the gas distribution system or the use thereof.
(2) If a natural gas distribution system operator is in the structure of a vertically integrated energy supply merchant, such operator shall be a separate capital company with independent legal person status and separated from natural gas trading or other types of commercial activities (which are not energy supply).
(3) To ensure the independence of the natural gas distribution system operator referred to in Paragraph two of this Section, the following conditions shall be observed:
1) persons who are responsible for the management of the natural gas distribution system operator may not become involved in the integrated natural gas merchant’s structures, which directly or indirectly are responsible for natural gas transmission and trade;
2) appropriate measures shall be performed in order to ensure that persons, who are responsible for the management of the natural gas distribution system operator may act independently;
3) the natural gas distribution system operator has the right to take decisions independently of the vertically integrated energy supply merchant in relation to assets, which are needed for the operation, maintenance or development of the natural gas distribution network. This shall not prohibit the vertically integrated energy supply merchant from establishing relevant co-ordination mechanisms in order to ensure the protection of the economic rights of the dominant merchant in relation to the return on the existing assets at the disposal of dependent merchants; and
4) the natural gas distribution system operator shall develop a conformity programme in which is described the measures, which have been performed in order not to permit discriminatory actions, and which ensure appropriate control over the observation thereof. The programme shall provide for the duties of concrete employees, which are to be performed in order to achieve this goal. The natural gas distribution system operator shall submit to the regulator an annual report regarding the measures performed and such report shall be communicated to the public on his or her Internet homepage.
(4) The requirements of Paragraph two of this Section shall not be applicable to integrated natural gas distribution system operators, which provide system services to less than 100 000 users.
[26 May 2005]
Section 45.1
The provisions of Section 43, Paragraph two and Section 45, Paragraph two of this Law shall not prohibit the establishment of a unified natural gas transmission, storage and distribution operator, which is engaged in the transmission, storage, distribution of natural gas and is legally separated from the merchant, which is engaged in natural gas trading, as well as conforms to the following criteria:
1) persons who are responsible for the management of the unified natural gas system operator may not become involved in the integrated natural gas merchant’s structures, which directly or indirectly are responsible for day-to-day natural gas supply;
2) appropriate measures shall be performed in order to ensure that persons, who are responsible for the management of the unified natural gas system operator may act independently;
3) the unified natural gas system operator has the right to take decisions independently of the integrated energy supply merchant in relation to assets, which are needed for the operation, maintenance or development of the network. This shall not prohibit the establishment of relevant co-ordination mechanisms in order to ensure the protection of the economic rights of the dominant merchant in relation to the return on the existing assets at the disposal of dependent merchants; and
4) the unified natural gas system operator shall develop a conformity programme in which is described the measures, which have been performed in order not to permit discriminatory actions, and which ensure appropriate control over the observation thereof. The programme shall provide for the duties of concrete employees, which are to be performed in order to achieve this goal. The unified natural gas system operator shall submit to the regulator an annual report regarding the measures performed and such report shall be communicated to the public on his or her Internet homepage.
[26 May 2005]
Section 45.2
(1) Balancing of the natural gas supply system shall be ensured by the natural gas transmission system operator. The natural gas transmission system operator shall provide energy users who have a direct connection to the natural gas transmission system, and natural gas distribution system operators with balancing services. The relevant natural gas distribution system operator shall provide energy users who have a direct connection to the natural gas distribution system, and other natural gas distribution system operators with balancing services.
(2) Each user, who is a market participant, and each natural gas distribution system operator shall enter into a contract with the relevant natural gas system operator regarding the supply of balance natural gas, ensuring a balance between the energy input into the system and energy consumption at any time.
(3) Natural gas distribution system operators shall perform balancing calculation in accordance with regulations developed by the system operator and approved by the regulator in a transparent way and shall not permit discrimination in relation to all recipients of balancing services. Energy users, who are market participants, and distribution system operators have a duty to pay for the balancing service the specification of the supply volume of which is based upon the data of the natural gas transmission and distribution operators.
(4) The balancing calculations shall be performed on the basis of the gas supply accounting transactions performed in a specific time period in order to specify the balancing volume of natural gas. The balancing calculations shall be accessible to the market participants involved in the transactions without violating the protection of commercial secrets.
(5) An energy user shall provide the natural gas system operator with information that is justifiably necessary for the maintenance of balancing and for the performance of calculations.
(6) In order to ensure payments for balancing services, the natural gas system operator may request from energy users guarantees in accordance with criteria and procedures for requesting such guarantees developed by the system operator and approved by the regulator. | 
