Baltic Electricity Market Mini-Forum 3 April, 2007 Riga, Latvia Licensing of the Electricity Supply Activity in the Baltic’s Kestutis Zilenas Head of Licensing department National Control Commission for Prices and Energy of Lithuania

3 April, 2007Baltic Electricity Market Mini Forum Riga, Latvia 2  During the last mini-forum was agreed, that it is necessary:  create working group;  compare existing licensing systems;  identify differences and existing barriers;  make applicable proposals and take actions Background

3 April, 2007Baltic Electricity Market Mini Forum Riga, Latvia 3 Main requirements to receive a electricity supply license:  Registered company in Commercial Register of Estonia;  Share of capital shall be at least EUR;  Precise description of the applicant’s planned activities (business plan);  Validity of a license operation – termless.  Fees:  State fee for issuing a license – 640 EUR;  Regular fee EUR per year of validity. Licensing requirements in Estonia

3 April, 2007Baltic Electricity Market Mini Forum Riga, Latvia 4 Main requirements to receive a electricity supply license:  Registered company in Commercial Register of Latvia;  Statement issued by the State Revenue Service on applicant’s accession to the tax payers and fulfillment of budget liabilities;  Overview of the applicant’s last year activities and planned activities (business plan);  Structure of existing or potential consumers.  Validity of a license operation – 5 years  Fees:  State fee for issuing a license – 143 EUR;  Regular fee - each year in amount of 0.2% of net turnover in previous year regarding to the public services provided by a company. Licensing requirements in Latvia

3 April, 2007Baltic Electricity Market Mini Forum Riga, Latvia 5 Main requirements to receive a electricity supply license:  Registered company in Commercial Register of Lithuania;  information about the internal organizational structure of the company;  a list of licenses and statutory authorizations for activities in electricity sector obtained by the enterprise and its branches;  balance sheets and auditor’s reports for the last two years (if the enterprise performed business activities for less than two years – just for the last year);  commitment to fulfill the license requirements.  Validity of a license operation – termless  Fees:  State fee for issuing a license – 580 EUR  Regular fee - not applicable Licensing requirements in Lithuania

3 April, 2007Baltic Electricity Market Mini Forum Riga, Latvia 6  Differences:  licensing systems are similar;  minimum (simple) requirements exist;  however depending on market development the requirements consistently should be minimized  Barriers:  import/export permits system Lithuania  import licensing system in Estonia Conclusions (1/2)

3 April, 2007Baltic Electricity Market Mini Forum Riga, Latvia 7  Proposals:  1) Abolition of the export and import permits in the Baltic’s should be one of the main objectives  2) Simplified Procedure for issuing Supply Licenses  3) Mutual recognition of the Supply Licenses – could be the Goal! Conclusions (2/2)

3 April, 2007Baltic Electricity Market Mini Forum Riga, Latvia 8 Thank you for your attention! Questions ?