Role of State in Facilitating Fair Competition and Protecting Interests of Customers in Transition to Open Electricity Market

Topics

• Why state responsibility is important• How it was implemented in Latvia• Couple of examples• Conclusion

Importance of the topic

Real market opening in Latvia is the most relevant experience in the Baltic states

For Latvia, where market is active, its is necessary to attract more market participants and eliminate use of market power by dominating market participant

Estonia and Lithuania can learn “for free” when preparing real opening of power market in respective countries

LegislationElectricity market ActRules on electricity trading

and consumption

Real market opening in Latvia

RegulatorGrid codeCustomer view

• Availability of regulated tariffs

• Transparency of incumbent trader

• Information to customer

Some problematic issues due to lack of market supervision

Conclusions

• Free market still needs supervision to protect customer interests and enhance competition

• Tariff structure on the regulated market influences open market

• Real market opening needs clear rules and action plan