The Saeima has adopted and the President promulgated the following laws: the electricity market law chapter I General provisions article 1. The terms used in the Act (1) this law is applied in the same terms as the energy law, in so far as this law provides otherwise.
(2) the Act is used in the following terms: 1) balancing — organized process ikbrīž the balance between electricity consumption and electricity production system;
2) power user — the person purchasing electricity;
3) electricity transmission: the transport of electricity, which does not include electricity trading, the high-voltage interconnected system with a view to the supply of electricity to the electricity users;
4) electricity producers: the natural or legal person who produces electricity;
5) electricity distribution-transport of electricity, which does not include electricity trade, medium and low voltage distribution systems with a view to its delivery to the electricity users;
6) electricity system participants — producers of electricity, transmission system operators, distribution system operators and end-users;
7) electricity system operator — a licensed corporation that provides system services;
8) trade in electricity-buying electricity for sale or the sale of electricity to the electricity users;
9) electricity electricity trader, who buys and sells (delivered — selling) electricity to another power user;
10) operators of electricity-electricity producers, traders and end users operating in the electricity market in accordance with the principle of voluntary participation;
11) — power user end-users who buy electricity for own use (final consumption);
12) cogeneration: technological process where appropriate use simultaneously produces electricity and heat;
13) household users — end users who buy and use electricity in your household own needs (final), to the exclusion of commercial operations, or other activities;
14) mandatory procurement — in this Act and other legislation an obligation to purchase electricity;
15) ancillary services — services that are required for the electricity transmission system balanced actions;
16) public electricity trader, trader, for which this law and other laws and regulations have specific duties and licence contains special requirements in the merchant's public duties;
17) related user, power user, who does not use the opportunity to become a member of the electricity market and thus free to choose electricity trader, but buying from a dealer or the public distribution system operator about tariffs approved by the Governor;
18) system service — transmission or distribution of electrical power, which provides electricity flows from producers to users;
19) interconnection: power line that links the individual countries in the transmission system;
20) direct line, power line, linking a stand-alone electricity object with a standalone user, or power line linking an electricity producer and trader, who directly provide their possession or possession of objects, related companies and their users;
21) universal service-guaranteed rights to the supply of electricity in a certain quality about easily and clearly comparable and transparent prices;
22) vertically integrated energy merchants — a trader or merchant as a whole ("the group"), which carried out at least one of the following activities — supply of electricity transmission or distribution, and at least one of the following power supply activities: the manufacture or sale of electricity.
2. article. The purpose of the law the purpose of the Law is: 1 create preconditions for effective) functioning electricity market;
2) to ensure that all electricity users (hereinafter users), subject to the requirements of the legislation, the most efficient way possible for reasonable prices are safe and high quality supply of electricity;
3 all users) to ensure free choice of electricity retailer;
4) to promote the production of electricity using renewable energy sources.
3. article. The scope of the law (1) of the Act be governed by the electricity market nature of activities that include electricity generation, electricity transmission (transmission), electricity distribution (distribution), electricity as the free circulation of goods trade and trade for the provision of services.
(2) the law shall lay down the requirements in the electricity market participants (players) and the electricity system (hereinafter the system) must be respected in the electricity market.
(3) the law on the Ministry responsible for energy (hereinafter the Ministry) and the public service Commission's Regulation (regulator) competence in electricity market surveillance and regulation.
(4) of the Act establishes the measures for the production of electricity using renewable energy sources.
Chapter II electricity system and market article 4. Power system (1) electricity system (hereinafter the system) installations for the production of electricity, transmission and distribution systems and electricity consumption facilities that are interconnected and need electricity for transportation from the manufacturer to the user.
(2) the system of management and usage procedures and market participants, except for the end-user, the activities of the network code. The network code in the development of the transmission system operator and approved by the Governor. The procedure laid down in the code of the network performance provides the transmission system operator. The Governor may ask the transmission system operator shall elaborate amendments to the network code and fix a time limit for the development of this amendment and for submission to the regulator.
5. article. Electricity market operational framework conditions (1) the participants in the electricity market the mutual transactions carried out in accordance with the contracts concluded in writing.

(2) the market participant is entitled to use for the transport of electricity transmission and distribution system of this law and the law "on regulators of public services" provided in the order specified in the system services.
Chapter III basic principles of the system, article 6. Electricity system operator (1) electricity system operator (hereinafter referred to as the system operator) is a public service, and its operation is regulated in accordance with this law and the law "On regulators of public services".
(2) the system operator shall be responsible for the management of the flow of electricity transmission or distribution system.
7. article. System operator licensing (1) the Governor shall issue a licence to the system operator in accordance with this law and the law "On regulators of public services".
(2) the licence specifies the area that is entitled to operate the system operator, and requirements that the system operator must observe in its activities.
(3) the system operator shall then license issued may not be passed on to other persons.
8. article. The regulation and supervision (1) the system operator shall be governed by the law of energy regulators, the law "on regulators of public services" and in accordance with the procedure laid down in this Act.
(2) the Governor shall establish uniform system connection rules, and the methodology used for calculating connection fees.
(3) the Regulator monitors: 1) the interconnection of power management and distribution rules in cooperation with the relevant authorities of the Member States or institutions that have such a transnational connections;
2) actions and methods that the system operator uses the system power overload;
3) system operator time consumption connection installation and repairs;
4) the system operator shall publish the information on transnational connections, networks and systems for power distribution to users, taking into account that no information collected is considered a trade secret;
5) accounting separation according to this law, 38-40 of the procedures laid down in article;
6) article 9 of this law the second part of the system laid down in connection with the implementation of provisions;
7) this statutory transmission and distribution operator obligations;
8) electricity market transparency and the level of competition in it.
(4) the Governor annually on their website published a report on the third paragraph of this article, the specific aspects of the system, the results of monitoring.
9. article. The system (1) system operator the license area and the term is responsible for the operation of the system, service and safety, management and development of the system, connections to other systems, as well as on the long-term ability of the system to ensure the transport of electricity under the projected demand.
(2) the system operator the license area and is within the system to ensure ongoing commitment scheme members the necessary connection to the system in accordance with the regulatory system issued in connection with the terms and on the connection fee that is determined by the system operator in accordance with the regulator's defined methodology for calculating connection fees, if the Member performs the specific technical requirements. New Member's connection fee includes the installation of connection to the reasonable costs and does not include system development costs.
(3) the end user in the order of the Cabinet of Ministers has the right to submit an application for special access to the transmission system or the existing transmission system connection capacity, if the user's electrical consumption by connection the installation will grow not less than 100 000 per year or megavatstund with connection nominal capacity of not less than 50 megawatts. The Cabinet of Ministers established the common provisions of the special connection, providing end user application and examination procedures, installation and connection of the necessary end user warranty for connection, as well as the end-user applications on a dedicated connection to the existing transmission system or transmission system connection capacity and in each case individually decide on the special connection conditions.
(4) the system operator has the right to refuse access to the system if the network capacity is insufficient. The grounds for refusing a system operator shall provide, in writing, within 30 days after receipt of the application system.
(5) the system operator within seven working days, inform the regulators whenever a market participant refused access to the system, and of the measures required to improve the system and increase its capacity.
Chapter IV transmission article 10. Transmission system, transmission system includes the interconnected networks and facilities, including transnational connections that voltage is 110 kilovolt and more and which are used for transmission to the distribution system or users.
11. article. The transmission system operator (1) Latvia has one transmission system operator, and its license area is the entire territory of Latvia.
(2) the transmission system operator electricity trade can participate only when electricity or power purchase and sale of balancing of the system is required, the purchase of ancillary services, transportation of electricity loss incurred by the transmission system operator's own consumption or when the system is a deviation from the normal operation or accident.
(3) the transmission system operator shall ensure the confidentiality of the information in the commercial, which, in the exercise of his duties, has received from the participants and market participants.
12. article. The transmission system operator's independence (1) the transmission system operator, also one vertically integrated power supply merchant, is a separate Corporation with permanent legal status and is cut off from electricity production, distribution and marketing operations.
(2) the transmission system operator's independence is provided subject to the following conditions: 1) the person responsible for the management of the transmission system operator may not go to the cue vertically integrated supply structures, economic operators directly or indirectly daily operations is the responsibility of the electricity production, distribution and marketing;
2) persons responsible for the management of the transmission system operator, are provided the opportunity to act and make decisions independently;

3) management of the transmission system operator shall ensure rights independent of vertically integrated energy companies in the prevailing economic operators to make decisions with respect to assets necessary for the transmission system operation, maintenance or development. This does not prevent the kind of appropriate coordination mechanisms to ensure the ruling economic and company management rights with regard to the return of the transmission system operator's assets. The ruling entity is authorized to approve the transmission system operator's annual financial plan or similar financial planning documents and to set global limits on the transmission system operator's indebtedness, but are not allowed to give instructions regarding day-to-day operations and decisions on the transmission system construction and installation or upgrading if this construction and installation or modernisation do not exceed of the approved financial plan, or any similar financial planning document;
4) transmission system operator shall establish a compliance programme, which sets out the specific obligations of employees and measures taken to prevent unequal treatment, and adequate control over its observance. The transmission system operator shall submit each year to the Governor a report on the measures taken and the report published by the Governor. Evaluation of the report of the Governor shall issue an opinion on the independence of the adequacy of the measures taken. Regulators in the opinion of the flaws in the transmission system operator removes the time limit laid down by regulators.
(3) the minimum requirements for the transmission system operator to ensure independence, pursuant to this article shall be determined by the Governor.
13. article. The transmission system operator's responsibility (1) transmission system operator shall provide the transmission system services and provides balancing and stability of transmission system. These obligations must be carried out in accordance with the principles of fairness, openness and equality principles, and it lays down the procedure for implementing the network code.
(2) the transmission system operator is responsible for balancing the transmission system and balancing calculations carried out in a fair, open and equitable manner for all system participants.
(3) the transmission system operator shall be responsible for the security of electricity supply and the flow of energy in the management of the transmission system to ensure a proper transmission network capacity and stable operation of the system.
(4) the transmission system operator shall be responsible for the possible transmission system congestion and congestion management, congestion or overload occurs if the trade transactions, as well as the interconnected system stability and compatibility with foreign power systems.
(5) the transmission system operator is entitled to restrict or withdraw the proposed trade transactions, if otherwise not possible to prevent the transmission or transmission system overload and has threatened the stability of the interconnected system. Trading transactions are recorded, limited and refused the network code in accordance with the procedure laid down, subject to the principles of fairness, openness and equality principles.
14. article. Ancillary to the transmission system, transmission system operators can provide auxiliary services independently or buy. Buying auxiliary services, the transmission system operator must take into account the performance criteria, as well as the principles of equality and justice, to the extent possible to ensure free competition in the purchase of ancillary services. The transmission system operator must make openly ancillary purchase conditions associated with the system.
15. article. Security of electricity supply in the long run (1) transmission system operators shall draw up a report on the transmission system delivery and conformity of consumption and public safety and security of energy supply with the capacity assessment (evaluation report) time period to 10 years. The evaluation report shall include electricity and power demand forecast for at least the next 10 years, an assessment of the conformity of the delivery and consumption in the current and forecast for the next 10 years, information on compliance with the request of the transmission system, the maintenance of quality, information about built and planned production capacity, as well as measures taken in the case of a request of the maximum and one or more suppliers the supplier in case of shortages.
(2) the transmission system operator, an assessment report every year shall provide to the Ministry and the Governor. The order in which the transmission system operator shall develop and submit to the Ministry and regulator, assessment reports and requirements regarding the content of the evaluation report is determined by the Cabinet of Ministers.
(3) the transmission system operator shall be entitled to request and receive an evaluation report for the preparation of the information required from all system participants.
16. article. Transmission system service tariffs (1) transmission system tariffs of services (hereinafter referred to as the transmission rate) determined by the regulator to the law "on regulators of public services" provided in the order or the transmission system operator in accordance with the tariff set by regulators, the calculation methodology, if regulators permit has been obtained. Transmission tariffs before their entry in force shall be published in accordance with the procedure laid down by regulators.
(2) the transmission rate are independent of the distance between the user and the manufacturer's location. Other differences are allowed tariff if the Governor has determined such tariff calculation methodology.
Distribution of chapter v article 17. Distribution system (1) the distribution system includes medium and low voltage distribution network and equipment used in electricity supply users and the voltage is less than 110 kilovolt.
(2) approach to distribution system also provides for the transmission system services in the territory of Latvia.
18. article. The distribution system operator (1) each transmission system operator license area is determined by the Governor. The Governor has the power to amend the licences already issued in the area.
(2) the distribution system operator license area of overlap is not permitted.
(3) the distribution system operator can participate in trade in electricity, where the purchase and sale of electricity is required for the supply of related users, to cover the loss of electricity distribution system or distribution system operator's own needs (final).
19. article. The distribution system operator independence

(1) the distribution system operator is a separate Corporation with permanent legal status and is cut off from electricity generation, transmission and marketing operations.
(2) the distribution system operator shall ensure independence, subject to the following conditions: 1) the person responsible for the management of the distribution system operator may not participate in the integrated vertical structures of power supply economic operators directly or indirectly daily operations is the responsibility of the electricity production, transmission and marketing;
2) persons responsible for the management of the distribution system operator are provided the opportunity to act and make decisions independently;
3) the distribution system operator are provided the right to control independent of vertically integrated energy companies in the prevailing economic operators to make decisions with respect to assets necessary to the distribution system operation, maintenance or development. This does not prevent the kind of appropriate coordination mechanisms to ensure the ruling economic and company management rights with regard to the return of assets of the distribution system operator. The ruling entity is authorized to approve the transmission system operator's annual financial plan or similar financial planning documents and to set global limits on the distribution system operator's indebtedness, but are not allowed to give instructions regarding day-to-day operations and decisions on the distribution system and installation of construction or modernisation, if this construction and installation or upgrade does not exceed of the approved financial plan, or any similar financial planning document;
4) the distribution system operator shall establish a compliance programme, which sets out the specific obligations of employees and measures taken to prevent discriminatory behaviour and ensure proper control over its observance. The distribution system operator shall each year submit to the Governor a report on the measures taken and the report published by the Governor. Evaluation of the report of the Governor shall issue an opinion on the independence of the adequacy of the measures taken. In the opinion of the Governor, the deficiencies specified by the distribution system operator removes the time limit laid down by regulators.
(3) the minimum requirements for a distribution system operator independence, pursuant to this article shall be determined by the Governor.
(4) the requirements of this article does not apply to distribution system operators, which are connected in less than a hundred thousand users, but these operators must ensure what separation of accounts according to this law, 38. — Article 40 requirements and functional separation, subject to the following minimum requirements: 1) you must create separate departments, which are responsible for the distribution and trade of electricity and works as a separate profit center;
2) should be concluded with Department managers to work contracts that specify precisely and clearly the reasons for terminating this contract;
3 Distribution Management Department) must not be to discharge the responsibilities associated with marketing departments work, and vice versa;
4) prevent possible conditions that can stimulate the rotation of staff between departments.
20. article. Distribution system services tariffs (1) distribution system service charges (hereinafter referred to as the distribution tariffs) set the regulator to the law "on regulators of public services" provided in the order or distribution system operator in accordance with the tariff set by regulators, the calculation methodology, if regulators permit has been obtained. Distribution tariffs before their entry in force shall be published in accordance with the procedure laid down by regulators.
(2) the distribution tariffs in one area of the licence do not depend on the distance between the user and the manufacturer's location. Differences between voltage and allowed consumption levels, if they are economically justified and all the stress and the consumption level of groups of users uniform.
21. article. The distribution system operator property of the distribution system operator, the performance of their duties, can only use the same owned or leased assets.
Chapter VI introduction of new capacity article 22. Production capacity (1) capacity-building and the implementation of new production facilities requires the permission of the Ministry. The requirements that must be met in order to receive the permit, as well as the cancellation of the authorization, and the extension of the period of validity of the order is determined by the Cabinet of Ministers.
(2) the permit is issued or denied within 30 days from receipt of all required documents. In the case of a refusal to issue a refusal in writing.
(3) the refusal is justified only by the application does not satisfy the requirements. The applicant may appeal the refusal to the administrative procedure law.
(4) the production capacity construction occurs in the laws.
23. article. Contest (1) If this Act referred to in article 15, the transmission system operator in preparation of an assessment report that the threat to the national security of electricity supply capacity gaps in or outside Latvia and this shortfall fails to compensate for this law, article 22 of the order, the Ministry proposes to issue a tender for new generating capacity, implementation or reconstruction of existing plants to increase their power.
(2) a decision on the invitation to tender is accepted, the Cabinet of Ministers. The object of the contest is free to enter into long-term electricity supply contracts.
(3) a call for competition is made and organised by the Governor. Contest to be put in the official journal of the European Union no later than six months before the application deadline. Documentation includes: 1) detailed anticipated treaty provisions;
2) applicant requirements;
3) an exhaustive list of criteria by which a winner will be chosen and the contract.
(4) a contract for the supply of electricity with a long-term winning switch article 33 of this law in the public traders.
24. article. Electricity introduced in a tendering procedure in production capacity (1) electricity from power plants, which the manufacturer power is introduced in article 23 of this law in accordance with the procedures specified in that is purchased on the basis of long-term contracts, which the law prescribed in article 23 have resulted in competition between the public and the producer.

(2) the public trader separate accounts for its volume and the cost of electricity that is purchased from the first part of this article in a specific manufacturer. This acquisition costs shall be borne by all Latvian electricity end-users in proportion to their consumption of electricity by buying from the public parts dealer in the first paragraph of producer of electricity or the purchase offsetting expenses. Purchase cost recovery arrangements shall be determined by the Cabinet of Ministers, but the distribution of the cost calculation methodology: the Governor.
25. article. Line installation (1) To install the transport of electricity interconnection with voltage and over 110 kilovolt, you need the permission of the Governor. The Governor shall lay down objective and fair criteria will be issued a permit interconnection capacity.
(2) the distribution system operator shall have the right to install its distribution lines in the license area.
(3) a person other than the transmission system operator shall have the right to install the distribution line in the distribution system operator licence area where the line is built, is: 1) direct line;
2) separate internal real estate line.
(4) the distribution system operator, the third paragraph of this article referred to in paragraph 2, if it corresponds to the network code laid down in the technical requirements, you need to connect to the distribution system of connection fee that is determined by the system operator in accordance with the regulator's defined methodology for calculating connection fees and approved by regulators, the system connection.
26. article. Direct line (1) the manufacturer is to supply electricity to the users or their targets using direct line connection.
(2) the Authorization of a direct line connection shall be issued for the Governor. The Governor shall lay down objective and equitable criteria, which will be issued to permit direct line connection installation.
(3) the authorisation of a direct line connection installation shall be issued or denied within 30 days after all documents established by the regulators.
Chapter VII electricity production and pricing of article 27. The electricity price for the electricity price for producers, traders and users, by mutual consent, except in the cases provided for in this Act.
28. article. Electricity generation in cogeneration process (1) a manufacturer who produces electricity cogeneration process can get the right to sell electricity produced under compulsory purchase.
(2) the criteria according to which cogeneration power plants are qualified in the first paragraph of this article, rights, compulsory purchase and its monitoring procedures, procedures for the determination of electricity prices, depending on the CHP electrical power and fuel to be used, the required procurement procedures and of cost recovery procedures can waive the right to sell electricity produced under compulsory purchase, determined by the Cabinet of Ministers.
(3) if the manufacturer wishes to use the first part of this article, rights and it corresponds to the cogeneration power plant Cabinet established criteria, all the electricity balance left after electricity use, buy public trader for second part of this article in accordance with the procedure laid down in the price.
(4) producers whose combined power plant launched production of electricity before the entry into force of this law and which is not used in the third paragraph of this article, rights, sells electricity to the public the merchant in accordance with the conditions for operating mode, the time and the price of these electric stations subject to the entry into force of this law.
(5) the public trader separate accounts of this article, the third and fourth parts in accordance with the procedure laid down in the amount of electricity purchased and their cost. This acquisition costs shall be borne by all Latvian electricity end-users in proportion to their consumption of electricity by buying from public merchant specific part of cogeneration power plant produced electricity or offsetting its procurement costs. Purchase cost recovery arrangements shall be determined by the Cabinet of Ministers, but the cost allocation calculation methodology — the Governor.
(6) a manufacturer who uses the first and fourth parts the rights may at any time opt out of their use, three months notice to the public on the merchant.
(7) the CHP power plants that meet the second part of this article provides for the criteria specified in the order, the cabinet can duly receive guarantees of origin of electricity. The proof of origin shall be issued by the Cabinet of Ministers authorised institution.
29. article. Electricity generation, renewable energy resources project (1) a producer of electricity produced from renewable energy sources, you can get the right to sell the electricity produced in the amount of electricity purchased mandatory.
(2) Certain parts of the whole Latvian end-user total consumption of electricity is required to settle with electricity produced from renewable energy sources. This part for each type of renewable energy, the five-year period, starting from January 1, 2006, shall be determined by the Cabinet of Ministers until 2010 to December 31, the percentage of this part in relation to the total power consumption to a minimum as 49.3%.
(3) a public merchant calculation required being purchased and using renewable energy sources, the amount of electricity each year, according to the Cabinet of Ministers set for the user in total consumption and publish it on their website and the newspaper "journal".
(4) the conditions for the production of electricity using renewable energy sources, as well as the criteria for qualification of producers in the first paragraph, rights and procedures may waive them, procedures for the determination of electricity prices, depending on the type of renewable energy, the minimum purchase amount for determining, implementing and monitoring arrangements, the minimum purchase amount for cost recovery arrangements, as well as measures to promote electricity production from biomass, determined by the Cabinet of Ministers.

(5) producers who comply with the fourth paragraph of this article provides for the criteria specified in the order, the cabinet can duly receive guarantees of origin of electricity. The proof of origin shall be issued by the Cabinet of Ministers authorised institution.
(6) a manufacturer who uses the first part of this article, certain rights, including article 30 of this law, the producers referred to in the first subparagraph, may at any time opt out of their use, three months notice to the regulator and the public traders.
(7) of this article and the provisions of article 30 shall not apply to hydro power is more than 5 megawatts.
30. article. Electricity purchase and sale through renewable energy resources (1) producers for the production of electricity using renewable energy sources and the action brought before the entry into force of this law, the public sell electricity marketer in accordance with the conditions of the transaction, the purchase terms and price, what the subject of this law into force.
(2) The required amount of electricity purchased part not covered by the purchase of electricity from the first part, the producers bought a public merchant from any manufacturer that produces electricity through renewable energy sources. Electricity from these manufacturers are purchased by economic principles and qualifications in accordance with the Treaty, in which the producer and the public trader has agreed on the arrangements for the production of electricity, the electricity price and the contract period, which may not be less than five and not more than 10 years. The economic application of the principle of progression is determined by the Governor.
(3) the public trader separate accounts in the first and second part established the amount of the purchased electricity and costs. This acquisition costs shall be borne by all Latvian electricity end-users in proportion to their consumption of electricity by buying from the public parts of the trader of electricity produced from renewable energy sources, or offsetting the public expenditure of the trader. Purchase cost recovery arrangements shall be determined by the Cabinet of Ministers, but the cost allocation calculation methodology — the Governor.
31. article. Manufacturer If the manufacturer to choose the right power plant you can qualify for this law, 28, 29 and 30 of the right provided for in article, the producer of his choice can only use one of these rights.
Chapter VIII, article 32 of the electricity trade. Electricity marketing fundamentals (1) electricity trading can be practiced: 1) electricity producers who use one or more generating units in one or more locations and has been issued a license for the production of electricity;
2) the distribution system operator, which is connected to the distribution networks for less than a hundred thousands of users, subject to compliance with article 19 of this law requirements;
3) electricity trader, received the license.
(2) electricity trader licences shall be issued by the Governor in accordance with this law and the law "On regulators of public services".
(3) the supply of electricity related users about regulators set tariffs or tariff determined by the service provider in accordance with the tariff set by regulators, the calculation methodology, if regulators permit is received, and in accordance with the regulator's conditions ensure: 1) public trader;
2) the distribution system operator, which is connected to the distribution networks for less than a hundred thousands of users, including the related user.
(4) the Governor shall determine the nature and extent of the system operator includes end user invoices to be served and informative materials.
(5) the arrangements for the supply of electricity to users and stop its supply, dealers, operators and users of the system, the rights and obligations of electricity supply and use, as well as payments for services received and the procedure to change the dealer is determined by the Cabinet of Ministers.
33. article. Public traders (1) Latvia has one public trader, and it creates an economic operator, which has a distribution license with the greatest area and number of users connected to the network is the largest in Latvia.
(2) the Public trader has the following responsibilities: 1) supply electricity to all associated users throughout the territory of Latvia. Related users that connect to the distribution system operator — public — creator of the trader network, a public electricity supply dealer in the Cabinet. Other distribution system operator networks connected to a power supply of the user associated public dealer provides sales, this related user provisioning amount of electrical power to the relevant distribution system operator;
2) to purchase electricity produced in the cogeneration process of article 28 of this law set out in the order;
3) to purchase electricity produced from renewable energy sources, 29 and 30 of this law in accordance with the procedure laid down in article;
4) to purchase a supply of related users of electrical power;
5) to purchase electricity for 24 of this law in accordance with the procedure laid down in article;
6) to fulfil the last guaranteed the obligations of the supplier.
(3) the tariffs relevant end-users and article 32 of this law, in the third paragraph, above, shall be determined by the transmission system operator or, where the Governor received the Governor's permission — a public merchant, in accordance with the tariff set by regulators, the calculation methodology. These rates before its entry into force shall be published in the regulator.
(4) the public trader development, submitted for approval to the regulator and regulator in the order published the approved standard electricity supply contract, the rules of operation and the associated user to supply electricity purchasing procedures.
34. article. The last guaranteed supplier (1) all household users and other users who comply with the Cabinet of Ministers, are entitled to universal service.

(2) in the first paragraph, certain users after they used the user option and become market participants have the right to suspend the exercise of rights of the supplier selection and get electricity from the last guaranteed suppliers. The last guaranteed supplier is a public merchant, and it does not have the right to refuse the supply of electricity, other than the cases referred to in the third subparagraph.
(3) the Public trader has the right to refuse to supply electricity for the first part of this article, the user, if the public trader has updated your obligation to be on the electricity supplier more than this user twice in the last 12 months.
35. article. End user right to change electricity traders (1) power to the end user, which has access to the system is entitled without restriction to change electricity trader, notice to the merchant with which it concluded a power trade agreement. Notification deadline imposes a trade agreement, and the merchant user agreement.
(2) the power to the end user, who has a connection to the distribution system, has the right to change the traders of electricity (electricity supplier), subject to the following conditions: 1) for at least three months ' notice in writing stating the merchant with which it concluded a power trade agreement;
2) for at least three months ' notice in writing informing about change of the dealer system operator whose network the user is connected.
36. article. The responsibility for balancing (1) Latvia balancing is provided by the transmission system operator. Directly connect to the system users, electricity generators and the distribution system operators the balancing service provide the transmission system operator. Distribution system connected directly to users, electricity generators and other distribution system operator for balancing service provide the relevant distribution system operator.
(2) each manufacturer and user of electricity, which is the operator, and each distribution system operator shall conclude an agreement with the system operator for the supply of electricity and balansējoš network and entered the electricity consumed in the balance at any time.
37. article. Balancing and balancing calculation (1) the system operator in accordance with network code performs a balancing calculation transparent and non-discriminatory for all balancing service recipients. Users and producers, who are the players, and the distribution network operator is obliged to pay a balancing services that amount is determined based on the transmission and distribution operators.
(2) Balancing calculations are performed on the basis of the specified period the electricity transaction tracking to determine the amount of electricity balansējoš. Balancing calculations are available in market and business system, ensuring the protection of their business secrets.
(3) the system operator shall provide system information that reasonably requires balancing and balancing calculations.
(4) the system operator may request a guarantee from scheme members to ensure payment for the balancing service, in accordance with the system operator and the regulator approved the developed criteria and procedures.
Chapter IX accounts article 38. Separation of accounts (1) the system operator shall frame the energy trader's internal accounting, drawing up the balance sheet, the profit and loss account and cash flow statement separately for each licensed energy type.
(2) the accounts are separate in the same way as if each of the first part of this article the following, make a separate, independent economic operator.
(3) the first paragraph of this article of the balance sheet, profit and loss statements and cash flow statements are derived from the annual accounts drawn up according to the law "on the annual accounts of undertakings".
39. article. Accounting report submission and publication (1) article 38 of this law in accordance with the procedures specified in the dialed the balance sheet, the profit and loss account and cash flow statement for the system operator shall submit to the Governor not later than one month after the approval of the annual report to the law "on the annual accounts of undertakings".
(2) the Governor shall determine the order in which the system operator gives users public access to article 38 of this law in the order drawn in balance sheet, profit and loss statements, cash flow statements and other financial information.
40. article. (1) prohibition of cross-subsidisation Of cross-subsidisation of considered actions that the operator carries out, turning her costs or other liabilities between the production of, or trade in electricity and the transmission, distribution or other commercial activities.
(2) the cross-subsidies are prohibited.
1. Transitional provisions article 19 of this law, the first and second subparagraph shall enter into force on 1 July 2007.
2. This law, article 35, paragraph 2 in relation to household users shall enter into force on 1 July 2007.
3. Until 1 July 2007 all of the distribution system operator shall apply in article 19 of this law a quarter.
4. Article 21 of this law shall enter into force on January 1, 2015.
5. The Cabinet of Ministers to 2006 January 1, issued by this law, the third paragraph of article 9, article 15, in the second paragraph of article 22, in the first paragraph of article 28, second and seventh paragraph, second and 29 in the fourth paragraph, the third subparagraph of article 30, in the fifth paragraph of article 32, article 33, second paragraph and article 34 the provisions referred to in the first paragraph. Until the entry into force of the provisions applicable to the following Cabinet of Ministers regulations, in so far as they are not inconsistent with this law: 1) Cabinet of 22 October 1996, the Regulation No 413 "electricity supply and use";
2) Cabinet 21 September 1999 rules no 326 "provisions on qualified electricity users";
3) the Cabinet of Ministers of 8 January 2002, the provisions of no. 9 "CHP requirements and procedures for the determination of the surplus of electricity purchase price";
4) Cabinet 15 January 2002 29 rules "electricity production capacity and disposition procedures of installation, if the production of electricity using renewable energy sources".

6. Regulator to 2006 January 1 issue this law, article 8, second paragraph, the third subparagraph of article 12, article 19, the third subparagraph of article 30 and the third subparagraph of the second paragraph of article 39 provided for in the regulations.
7. pending the approval of the network code is applicable in accordance with article 28 of the law of energy of point 8 of the network code approved by the regulators.
8. Article 4 of the Act referred to in the second paragraph the network code and article 37 of the guarantee referred to in the fourth paragraph of the application criteria and procedures to be submitted for the approval of the Governor until January 1, 2006.
9. The Cabinet of Ministers to 2006 January 1 issue of heat supply and the terms of use and the gas supply and the terms of use. To this provision to the date of entry into force of such rules, in accordance with article 5 of the energy of the second part of the Cabinet of Ministers issued the rules: 1) the Cabinet of Ministers of 28 February 1995, the provisions of no. 41 "heat supply and use";
2) the Cabinet of Ministers of 20 January 1998, the provisions of no. 23 "gas supply and use".
Informative reference to European Union directives, the law includes provisions resulting from: 1) of the European Parliament and of the Council of 27 September 2001, Directive 2001/77/EC on the promotion of the use of electricity within the internal market, produced using renewable energy sources;
2) of the European Parliament and of the Council of 26 June 2003 Directive 2003/54/EC on the common electricity market rules and Directive 96/92/EC;
3) of the European Parliament and of the Council of 11 February 2004, Directive 2004/8/EC on cogeneration based on a useful heat demand, promotion in the internal energy market and amending Directive 92/42/EEC.
The Parliament adopted the law of 5 May 2005.
State v. President Vaira Vīķe-Freiberga in Riga on 25 May 2005 editorial Note: the law shall enter into force with the 8 June 2005.