To ensure more successful operation of AST it is necessary to finish the unbundling of the transmission system operator and AS Augstprieguma tikls should transfer transmission system assets to its ownership – it will bring a positive contribution to the operating efficiency of the Latvian power system. 

‘Historically, Latvia has chosen the second model, which means that all obligations and duties are confined to the management of the transmission system and supervision and development of the power system, while the assets pertaining to the infrastructure – transmission lines, substations, various buildings are not our property, instead we rent them from Latvenergo group,’ explains Varis Boks, Chairman of the Board of AST.

Also, he adds, that Latvia is the last among the EU member states to operate under this model, and the company views it as not being the most efficient way to organise the operation of the transmission system operator. The transfer to the basic model where assets are owned by the transmission system operator would promote the efficiency of the Latvian power system operation.

Last week, after assessing the compliance of AST to the certification requirements, the Public Utilities Commission concluded that the current model, under which the transmission network is not owned by AST, encumbers the ability of AST to invest in certain infrastructure objects necessary to efficiently ensure transmission system services.

Therefore the Regulator has required AST to prevent deficiencies and improve cooperation models with the respective lessor of the assets by 1 April 2019. It follows that AST has to perform activities aimed at reassessing the terms and conditions included in the contracts concluded with the lessor, thus ensuring AST has equal conditions provided for other transmission system assets owned by Latvenergo group.