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March 27, 2002 Riga, Latvia Use of Transmission System Tariffs. Practical implications and ways of harmonisation between Baltic States.Compensation of physical loses in transmission network caused by electricity trade
 


Agenda

Opening of Meeting - Kaspars Grava - Latvenergo, High Voltage Network, Head of Technical Department.
Introduction with meeting objectives - Juris Ozolins, Chairman of the meeting:
1. Implementation of Use of Transmission System tariffs in individual countries.
2. Impact of tariff structure on trade and development of Transmission Grid
3. Need for harmonization.
4. Impact of power loops on economics of Transmission System Operators
5. Assessment of loses caused by trade
6. Evaluation of compensations and impact on tariff

Update of legal and institutional situation in Countries:
Estonia. No significant changes in institutional building of power sector. There are new thoughts to make Energy Law more liberal and open power sector for competition.
Latvia. Newly legally established Transmission System Operator - High Voltage Network is applying for Transmission licence and Tariff. Regulator is working out new tariff methodology, which is expected to be ready at June.
Lithuania. Restructured Lithuanian electricity sector not facing big difficulties with payments and legal relationship. It is expected that some customers and power plants would apply for licences of independent supplier.

Structure of Use of Transmission System Tariffs ( fixed and connection fee, capacity fee, transport charge, loss and other components, cross-border charges e.c.
Peep Soone introduces with transmission system tariff calculation and approval process in Estonia. It is typical ex-post approach setting Transmission tariff. Regulatory charges will be included in Transmission Tariff for Estonian customers only when National Grid will start fulfill Public Service Obligations of Transmission System Operator - buy energy from windmills. According Estonian Law Network System Operators have a obligation to feed in and buy energy from renewable sources on price which is equal 0.9 of end-user Tariff.
Aistija Zubaviciute introduces with structure of UoTS tariff setting process.
Meeting participants agreed on need to harmonize Transmission System tariffs in Baltic States:
1) Transparency, simplicity;
2) Similar cost structures;
3) Minimum charges to generators for UoTS Tariffs;
4) No need to flatten numeric values - cost drivers are different in each country;
5) Benchmarking is possible if tariffs are published in transparent manner.

Compensations for transit, horizontal networks and trade in internal market of Baltic States.
Charles Zimmermann presents the information on Florence Forum and activities of European Transmission System Operators.
Meeting participants agreed on following findings concerning network loses caused by transit and horizontal power flows in Baltic States:
1) Bilateral trade would not create transmission congestions in nearest future, but theoretically it might happens if traded volumes increase.
2) There are not satisfactory data amount to assess precisely compensated values between Transmission System Operators.
3) DC Baltija is able to restart metering and data gathering process if National Transmission System Operators will give assignment
Agreement between Baltic Regulators concerning Common Baltic Electricity Market.
Aistija Zubaviciute presents the Lithuanian initiative - draft Agreement.

Meeting participants expressed full support to such initiative and everybody is encouraged to sent comments to Aistija Zubaviciute (aistija.zubaviciute{.}regula.is.lt). Baltic Regulators in framework of Forum will meeting in Riga at 15th of April and will discuss document.

Next common Forum meeting will be held in Riga at 12th of June.



Participant List

Estonia
1. Peep Soone (Main Grid of Eesti Energia AS, Finance Director)

Lithuania
2. Rimvydas Sinkevicius (NCCPE, Electricity Department, Head)
3. Aistija Zubaviciute (NCCPE, Electricity Department, Senior Specialist)
4. Vladas Cebatariunas (Lietuvas Energija AB, Department of Economics and Finance, economist)
5. Vilma Prokapaviciute (Lietuvas Energija AB, Market Department, senior specialist)
6. Jan Falck Christensen (Pre-Accession Advisor, Twinning Project Elkraft System/Lietuvos Energija)

Latvia
7. Kaspars Grava - Latvenergo, High Voltage Network, Head of Technical Department
8. Janis Junkers -Latvian Public Service Regulatory Commission, Advisor of Commissioner)
9. Ivars Zarins - Latvian Public Service Regulatory Commission, member of the Council
10. Dace Bite - Latvian Public Service Regulatory Commission, Head of Information Division
11. Dainis Dravnieks - Ministry of Economic of Latvia)
12. Janis Rekis (LDA ED, Chief Specialist)
DC Baltija:
13. Vilnis Kreslins - Director)
14. Aivar Tihane - Cheaf Specialist

Organizers:
15. Charles F. Zimmermann- Nexant Inc.(Senior Consultant)
16. Valdis Kregers - Direector of Energy Department of Latvian Development Agency
17. Juris Ozolins, - Chairmen of the meeting
18. Liga Stage - Project Coordinator



Materials

Main Principles Of The Agreement Concerning CBEM, Juris Ozolins, Chairman of the Forum Meetings