Electricity import/export in Baltic electricity market April 24, 2009 Jaanus Arukaevu

Issues 1.Reminding from last Minifora: Cross- border trading and balancing procedures in Latvia. 2.Transparency: Can traders trust TSO- s?

Import and export activities: LATVIA No limitations to import and export Currently unequal treatment of Latvenergo and other traders in CB trade: Latvenergo has the only open supply agreement over Latvian border, instead of TSO. No other trader has right to do so Balancing energy price will be actually set by Latvenergo, not TSO Spread of balancing energy has become enormous Latvenergo do not have imbalance, other traders have no right to avoid imbalance with the same means Current regulation should be changed in order to provide equal access to the network service to all market participants  Present Future  ?

Balancing energy pre-set price for September 2008 NB! imbalance price spread is up to 60,5 EUR/MWh! And TSO can procure it only from Latvenergo! (1 LV = 1,41 EUR)

Balancing energy pre-set price for September 2008, April 2009 (1 LV = 1,41 EUR) NB! imbalance price spread 30 EUR/MWh is still high!

Transparency: Can traders trust TSO-s? *Photo taken in LEO office in Vilnius TSO-s are leaking. How? Intregrated IT-systems provide kind of information from TSO to “friendly trader” Do TSO-s still deliver that kind of sensitive information to power companies on regular bases? In Estonia? In Latvia? In Lithuania?

THANK YOU!