By approving amendments to Regulations of the Cabinet of Ministers No. 312 of 19 April 2011 “Procedures for Supply to Energy Users and Procedures for Sale of Heating Fuel during Announced Energy Crises” at its meeting on August 23 this year the government adopted a number of important decisions were taken to strengthen energy security, i.e. by specifying the conditions for natural gas supplies to households and other primary gas users in the event of a crisis situation.
By approving these amendments, the Regulations of the Cabinet of Ministers were supplemented with the scope of the users to be supplied, improve the regulation of energy consumption restrictions if an energy crisis of a specific level is announced, as well as create a legal framework that determines how natural gas is supplied to the users during an energy crisis if the existing trader is unable to provide a trade service.
Firstly, with the amendments approved today, the CM regulations provide for the obligation of AS “Latvenergo” to ensure natural gas supplies to the users to be supplied if a state energy crisis is announced and the natural gas trader of these users cannot supply natural gas. Such changes will also provide AS “Latvenergo” with long-term access to Klaipeda LNG terminal capacities, providing alternative natural gas supplies to Latvian users.
Secondly, in order to reduce the risk of electricity and thermal energy shortages, the amendments to the CM Regulations complement the category of users to be supplied, including also a significant source of energy supply – Riga combined heat and power plants owned by AS “Latvenergo”. This means that during an energy crisis, gas will be supplied to these energy supply sites, thus also increasing the security of electricity supply.
Thirdly, the CM Regulations also improve the energy consumption restriction regulation by providing that natural gas users storing natural gas in the Incukalns underground gas storage facility will not be subject to the natural gas consumption restriction during an energy crisis to the extent that the user keeps natural gas in the storage facility. This clarification provides an opportunity, for example, for energy-intensive operators whose technological process prevents production plants from stopping, to purchase and store their own gas in a timely manner, the consumption of which will not be restricted.
Fourthly, the CM Regulations set out the obligations of the natural gas distribution system operator and other natural gas traders to cooperate with the energy supply undertaking – AS “Latvenergo”, who will ensure the supply of natural gas to the users to be supplied in situations of a state energy crisis.