Currently, electricity trading between the Baltic States and third countries is restricted to the Lithuanian-Belarusian border. At the same time, the Lithuanian party has already expressed its position to close this border with third countries, when the nuclear power plant in Astravets (Belarus) is launched (provisionally planned for the beginning of 2020).
In order to allow the Latvian government to take a decision on the further actions in organising electricity trading with third countries in a timely manner, the Ministry of Economics developed the Informative Report on trading of electricity by the Baltic States with third countries and the Cabinet of Ministers reviewed it on its meeting on 13 August.
In order to reduce risks of potential electricity capacity flow reduction or negative tariff fluctuations in a timely manner, the Cabinet of Ministers supported the proposal of the Ministry of Economics to move trading of electricity to the Latvian-Russian border, when Lithuania stops trading electricity with Belarus. Such a solution will ensure that trading conditions with third countries continue to remain equivalent, as this has happened so far. Latvia has consulted Lithuania and Estonia, as well as the European Commission on the implementation of such a solution.
At the same time, CM instructed the Ministry of Economics to start working on the necessary amendments to regulatory enactments so that the Latvian electricity transmission system operator in cooperation with the Estonian transmission system operator may develop a methodology for implementation of the electricity transmission infrastructure tariff for trading with third countries.
Meanwhile, the Latvian electricity transmission system operator will be instructed to start working on the development of a new methodology for determining the trading capacity, which would be expected to be open for the electricity trading across the Latvian-Russian border after Lithuania has ceased trading electricity with Belarus.
As it is known, in January the Cabinet of Minister supported the introduction in Latvia jointly with other Baltic States of a joint, regional electricity transmission infrastructure tariff for electricity trading with third countries in order to cover the infrastructure costs of the transmission system operator. However, discussions among the Baltic States have resulted in a conclusion that the most appropriate solution would be to introduce a nationally defined tariff in a country that trades with third countries.