According to Article 36 of the Latvian Electricity Market Law each electricity market participant shall be liable for the fact that the quantity of electricity sold by it in each trading interval complies with the quantity of electricity delivered to the system, and the quantity of electricity purchased complies with the quantity of electricity received from the system. Thus, all Latvian electricity market participants, including those which intend to trade electricity in the Latvian bidding area of the Nord Pool AS (NPS) Power Exchange, have to conclude the respective agreement on receipt of balancing services with Balancing service provider and System Use Agreement with “Augstsprieguma tikls” AS (AST).
Taking into account that “AST as the Latvian transmission system operator (TSO) is responsible for balancing of the Latvian electricity transmission system, there are 2 options on how electricity market participant can receive balancing service:
- To receive balancing service directly from the Latvian TSO – AST by concluding an Balancing agreement or Balancing Service Agreement with AST, or
To receive balancing service from balancing service provider, which has concluded the respective balancing agreement with AST as the Latvian TSO. In such case the respective market participant, which intends to receive balancing service from balancing service provider, has to conclude 2 separate agreements:
- System Use Agreement (applicable to all electricity traders) or System Services Agreement (applicable to producers and users who are directly connected to the transmission system) with AST as the Latvian TSO and
- an agreement on receipt of balancing services with the balancing service provider, which has concluded the Balancing agreement with AST as the Latvian TSO.
In compliance with the requirements of the Latvian law “On Regulators of Public Utilities” and Cabinet Regulations “Regulations Regarding Types of Regulated Public Utilities” electricity market participants – producers and traders have to register in the Latvian electricity producers or traders register respectively. Latvian electricity traders register and electricity producers register is operated by the Latvian Public Utilities Commission (www.sprk.gov.lv). Registration in the respective register is the prerequisite for concluding the respective agreement(s) with the Latvian TSO. For conclusion of the agreement with the user, the user’s electrical installation has to be connected to the transmission system and it has to operate in the electricity market in accordance with the principle of voluntary participation.