The investment of the transmission network assets in the share capital of AST has been completed
The legal process of property rights reform of the Latvian electricity transmission system has been successfully completed; the transmission network, namely high-voltage transmission lines, substations, and related real estate, have been transferred to the Latvian transmission system operator AS Augstsprieguma tīkls (AST) due to the reorganization – by incorporating AS Latvijas elektriskie tīkli (LET). An entry regarding the incorporation of LET into the Register of Enterprises of the Republic of Latvia was made on 25 November.
“I feel confident that the full implementation of the ownership unbundling model will have a positive impact on the operation of the transmission system operator. The change in ownership of the assets has led to a significant increase in the value of AST’s balance sheet; it also will lead to an increase in profits, as all profits will remain at AST’s disposal while at once reducing the administrative burden. From the viewpoint of energy policy, too, this is a rational step in the operation of the system, including the development of the electric power market and its future integration in the European Union,” says Varis Broks, the Chairman of the AST Board.
The reform was carried out in accordance with the Decision of the Cabinet of Ministers on the change of the management model of the electricity transmission system, thus providing AST with the necessary infrastructure for the functioning of the electricity transmission system.
Since 2011, when member states of the European Union were required to separate their transmission system operators from the historical electric power supply monopolies, AST has been fulfilling the functions of a transmission system operator, while the assets necessary for the operation of the system were leased from LET. As part of the reorganization, AST will also take over all assets, liabilities, and rights of LET. From the viewpoint of energy policy, this is a rational step in the operation of the system, including the development of the electric power market and its future integration in the EU.