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Commission Report (2002): Latvia

Chapter 14: Energy

Latvia made progress in order to prepare for the internal energy market in adopting policy documents on energy and for gas market liberalisation, including an Action Plan for its implementation. Further steps of Latvenergo`s restructuring are pending. Progress was made in privatising Latvijas Gâze. The harmonisation with the electricity and gas directives has advanced, but needs to be completed. The Gas Market Liberalisation policy document includes provisions for the elimination of price distortions and needs to be implemented. The regulator, the Public Utilities Commission, has been strengthened, but continued efforts are necessary in terms of additional resources, further independence, training and the establishment of relevant system operators, as required in the Action Plan. On oil stocks, progress was made and legislation on the maintaining of security oil stocks was adopted, but secondary legislation is still needed to achieve alignment. As required by the Action Plan, the administrative structure in this area was clarified further. Latvia continued to address the requirements under the Action Plan concerning energy efficiency and to promote the use of renewable energy, but more remains to be done. The institution responsible for energy efficiency control and supervision started its operation; its statute has been adopted, but its capacity needs strengthening, in line with the measures defined in the Action Plan, and additional efforts are required in this field. Latvia has accepted and adequately addressed all recommendations of the Council Report on Nuclear Safety in the Context of Enlargement; implementation of the Action Plan has continued through strengthening of the administrative capacity of the Radiation Safety Centre. Overall, the Accession Partnership priorities in the energy sector have been partially met. Implementation of the measures under the Action Plan is largely on track.

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