Aistija Zubaviciute is opening meeting.
Chairman of the meeting Juris Ozolins sets the objectives of current meeting.
Update of legal and institutional situation in Countries
a) Lithuania. From Januari 1st 2002 instead of integrated Lietuvos Energija independent companies are operating in power market: two distribution, transmission and independent power producers Ignalina NPP, Lietuvos TPP, Mazeikai CHP, Kaunas CHP and Vilnius CHP. Kruonis HPS and Kaunas HPP remains in Lietuvos Energija and are serving for regulation and keeping national balance. Lietuvos Energija from fulfils obligations of Transmission System Operator and Market Operator. (See attachment Lietuvos energija_prezentacija(angl.).ppt). Lithuanian Power Market is in stage to implement Trading Rules, Public Service Obligations, and Grid Code. There are two transitional periods - first till April 1st , when Lietuvos Energija is only Public Supplier, and second till December 31st , when Distribution Co and Traders might buy limited 50% directly from Power Plants.
b) Estonia. At the meeting on January 16, the Supervisory Board of Eesti Energia decided to put an end the negotiations with NRG Energy Inc. and NRGenerating Holdings B.V., pursuant to the Government of the Republic resolution of 8 January 2002. Eesti Energia investment programme and investment programme of AS Narva Elektrijaamad, should go ahead as it was , approved by the Supervisory Board earlier. Eesti Energia should submit the alternative proposals for the scope of continuation of Narva Power Plants' renovation project and for financing arrangements to the Ministry of Economic Affairs by March 15, 2002. Most likely draft Market Laws should be revised and market model defined.
c) Latvia. From January 1st 2002 High Voltage Network is registered as legal entity - joint stock company acting as National Transmission Operator. JSC Latvenergo owns 100% of HVN shares. Obligations of Transmission System Operator in company's documents are described very generally. It is expected, that Latvian Market model will be announced soon. Latvia also closed in negotiations with EU Commission Energy Chapter. Concerning electricity part important and CBEM important is Latvia's position on tariffs:
"The cross - subsidies exist only in the electricity distribution sector. The industrial consumers are subsidizing transportation costs of the commodity to households. During elaboration of the methodology for costs and tariffs calculation, the Public Utilities Commission will reconsider the issue of subsidies. The work has already started and will be accomplished by the end of 2001."
1. Physical balancing of National Systems:
Physical balancing of all three power systems starts with forecasts of system loads on daily, weekly, monthly and seasonal bases. National DC up till now are relying on they experience and data archives, involvement of Distribution system Operators is limited. DC Baltija is major load forecaster for Baltic region. There is no experience of load profiles planning for potential market participants - Qualified Customers or Traders.
a) Role of Distribution System Operators on load forecasting;
b) Traders and Bulk Customers;
c) Role of Transmission System Operator - pooling power & just
d) Configuration of Transmission System Operator and Market Operator. Role and legal status;
e) Short-term and long-term load planning
f) Short-term and long-term generation planning
2. Balancing responsibilities of Transmission System Operators, Market Operators, DSO, Traders and Customers.
Transmission System Operators are planning 3-6% generation margin to cover both load and consumption. Cost of this power and energy reserve reflects value balancing power energy on national level. While active trading did not started costs are included in retail tariffs. Most likely to develop mature balancing market on national level is difficult justify due by significant costs of IT systems and no expectations to see many market participants in short- term.
3. Market participants and limitation on trade:
It is discussed Lithuanian case. See: Trade Rules (final version) jan2002 (1).doc
PSO list_rev.doc and PSO rules_copy.doc
It is understanding of meeting participants, that even having some limitations, Lithuanian Market model is not controversial with principles of common trading area for electricity in Baltic Countries. It is not clear for suppliers from out side Lithuania, how specifically Qualified Customers can get permits to import energy. Rules are accepted by Ministry of Economy, but available for time being on Lithuanian only.
Balancing principles in Lithuania are well defined in Lithuanian Grid Code . See attachment Grid Code en.doc
4. Method of promotion electricity production from renewable sources end efficient CHP plants had been analysed on case of Latvian regulations. See attachment Renew Latvia English.doc and CHP Latvia.doc
Public Service Obligation of Transmission System Operator is to buy energy from authorised Power Plants and feeding- power in transmission grid other on regulated electricity price which is form of subsidy applying import price as reference price. In other cases buyers are DSOs. Amount of generation capacities is regulated by MoE and Regulator. How capacities are regulated one might find http://www.lem.gov.lv/ ( Latvian only)
Next meetings:
1) Latvian participants only - 26th of February:
Agenda:
a) Analyses of findings and recommendations of Latvian Energy Sector Restructuring project on Latvian Market Model and implications for Regulator, Transmission System Operator and Market infrastructure;
b) Lithuanian market model and trading rules. Interface with Latvian market participants;
c) Legal consequences of suggested models.
2) All participants - 27th of March, Vilnius or an other place in Lithuania:
Agenda:
a) Public Service Obligations of Transmission System Operators:
a. Experience in EU countries,
b. PSO of TSOs in Baltic Countries,
c. Interpretation of Universal service.
b) Compensation of losses caused by Cross-border Trade and "horizontal networks"
3) Baltic Regulators only - 10th of April, Vilnius - Suggestion of Chairman Mart Ots and Chairman Vidmantas Jankauskas. Agenda will be offered by V. Jankauskas and J.Ozolins after conformation from Latvian PSRC.
