Procedures for the Supply of Energy Users and Sale of Heating Fuel During a Declared Energy Crisis and in the Event of a Threat to the State

[19 February 2013]

Issued pursuant to
Section 64, Paragraph one and Section 73
of the Energy Law and Section 9, Clause 7,
Sub-clause "a" of the Mobilisation Law

[19 February 2013]

I. General Provisions

1. This Regulation prescribes the procedures by which energy users shall be supplied with energy during a declared State or local energy crisis, and the procedures by which the energy supply merchants, merchants ensuring and providing the emergency stock service, and merchants to which licences have been issued in accordance with the procedures laid down in laws and regulations for commercial activities with fuel (hereinafter - the fuel merchants) shall sell heating fuel owned by them upon request of a State or local government energy crisis centre.

1.¹ The procedures laid down in this Regulation shall apply to the provision of the National Armed Forces, the State Fire and Rescue Service, the State Police, the State Border Guard, the State Emergency Medical Service and the civil protection bodies to be mobilised with natural gas and electricity also in the event of a threat to the State.

[19 February 2013; 23 August 2016]

2. A draft decision on the level of a State energy crisis shall be prepared by the State Energy Crisis Centre, but on the level of a local energy crisis by the energy crisis centre of the relevant local government. The relevant draft decision shall be prepared by taking into account the specific circumstances of energy supply:

2.1. first level energy crisis - the energy supply capacity decreases by 7-12 % of the daily (average) energy consumption;

2.2. second level energy crisis - the energy supply capacity decreases b y 12-17 % of the daily (average) energy consumption;

2.3. third level energy crisis -the energy supply capacity decreases by more than 17 % of the daily (average) energy consumption.

3. In order to determine the appropriate level of a State or local energy crisis, the State Energy Crisis Centre and energy crisis centres of local governments shall take into account the estimated duration of the energy crisis and also evaluate the opportunities for the diversification (substitution) of energy and heating fuel.

II. Groups of Energy Users

4. If the supply of electricity or thermal energy is disrupted during an energy crisis, three groups of energy users shall be identified:

4.1. energy users of the first group - hospitals, State and local government long-term social care and social rehabilitation institutions, crisis centres, social rehabilitation institutions for persons addicted to narcotic, toxic and other intoxicating substances, emergency services, telecommunications hubs, the State Emergency Medical Service, the State Fire and Rescue Service, the National Armed Forces, the State Police, the State Border Guard, institutions of direct administration, water supply and sewage stations, objects of energy supply merchants, the railway, airports, bus stations (if the distance of bus routes (lines) in one direction exceeds 50 km), ports, prisons, State security institutions, valsts sabiedrība ar ierobežotu atbildību "Latvijas Vides, ģeoloģijas un meteoroloģijas centrs" [the State limited liability company Latvian Environment, Geology and Meteorology Centre], the responsible keepers of State material reserves (at sites for storage of State material reserve resources), civil protection bodies to be mobilised;

4.2. energy users of the second group - schools, pre-school educational institutions, outpatient medical treatment institutions, food and agricultural product production facilities, local public transport (within the meaning of this Regulation - public transport of any type in cities and local government territories if the distance of transport route (line) in one direction does not exceed 50 km), food delivery transport, industrial objects the discontinuation of the technological process of which may cause accidents, damage to equipment or destruction of manufactured production in large amounts, State and local government institutions not included in the first group, households;

4.3. energy users of the third group - energy users not included in the first and second groups.

[23 August 2016]

4.¹ If during an energy crisis the supply of natural gas is disrupted, four groups of energy users shall be identified:

4.¹ 1. protected customers - households, schools, pre-school educational institutions, hospitals, State and local government long-term social care and social rehabilitation institutions, crisis centres, social rehabilitation institutions for persons addicted to narcotic, toxic, and other intoxicating substances, emergency services, telecommunication centres, the State Emergency Medical Service, the State Fire and Rescue Service, the National Armed Forces, the State Police, the State Border Guard, State security institutions, water supply and sewage stations, prisons, civil protection bodies to be mobilised, and also an energy supply merchant which, in accordance with the laws and regulations regarding the procedures for the management and use of the electricity system, controls the availability of generation units of supervisory control schedule with a capacity above 100 MW and of electricity capacity generation at least 900 hours per year;

4.¹ 2. energy users of the first group - institutions of direct administration, objects of energy supply merchants, the railway, airports, bus stations (if the distance of transport route (line) in one direction exceeds 50 km), ports, the State limited liability company Latvian Environment, Geology and Meteorology Centre, the responsible keepers of State material reserves (at sites for storage of State material reserve resources);

4.¹ 3. energy users of the second group - outpatient medical treatment institutions, food and agricultural product production facilities, local public transport (within the meaning of this Regulation - public transport of any type in cities and local government territories if the distance of transport route (line) in one direction does not exceed 50 km), food delivery transport, industrial objects the discontinuation of the technological process of which may cause accidents, damage to equipment or destruction of manufactured production in large amounts, State and local government institutions not included in the first group;

4.¹ 4. energy users of the third group - energy users not included in the first and the second groups.

[23 August 2016; 23 August 2022]

5. When drawing up the lists referred to in Paragraphs 9 and 14 of this Regulation, the technical capability to restrict the energy supply of a particular energy user shall be taken into account depending on the configuration of networks and systems and the territorial location of the particular object.

III. Restrictions on Energy Consumption

6. If the first level energy crisis is declared:

6.1. energy consumption from natural gas for energy users of the first group and protected customers, and also users of natural gas in the amount in which they store natural gas at Inčukalns underground gas storage facility at the moment of declaring the first level energy crisis shall not be restricted;

6.2. restrictions on energy consumption shall be imposed on the energy users of the second and third groups in an amount not exceeding 20 % of the daily (average) energy consumption.

[23 August 2016; 23 August 2022]

7. If the second level energy crisis is declared:

7.1. restrictions on energy consumption shall be imposed on the energy users of the first group in an amount not exceeding 20 % of the daily (average) energy consumption;

7.2. restrictions on energy consumption shall be imposed on the energy users of the second group in an amount not exceeding 40 % of the daily (average) energy consumption;

7.3. restrictions on energy consumption shall be imposed on the energy users of the third group in an amount of up to 100 % of the daily (average) energy consumption;

7.4. energy consumption for the protected customers and also users of natural gas in the amount in which they store natural gas at Inčukalns underground gas storage facility at the moment of declaring the second level energy crisis shall not be restricted.

[23 August 2016; 23 August 2022]

8. If the third level energy crisis is declared:

8.1. restrictions on energy consumption shall be imposed on the energy users of the first group in an amount not exceeding 40 % of the daily (average) energy consumption, however, the energy supply may not be discontinued, thus ensuring the performance of the basic functions of the energy users of this group;

8.2. restrictions on energy consumption shall be imposed on the energy users of the second group in an amount not exceeding 80 % of the daily (average) energy consumption;

8.3. restrictions on energy consumption shall be imposed on the energy users of the third group in an amount of up to 100 % of the daily (average) energy consumption;

8.4. energy consumption for the protected customers and also users of natural gas in the amount in which they store natural gas at Inčukalns underground gas storage facility at the moment of declaring the third level energy crisis shall not be restricted.

[23 August 2016; 23 August 2022]

IV. Natural Gas and Electricity Supply

[23 August 2016]

9. The licenced natural gas and electricity distribution system operators shall, by taking into account the classification of energy users referred to in Sub-paragraphs 4.1, 4.2, 4.¹ 1, 4.¹ 2 and 4.¹ 3 of this Regulation and by agreeing thereupon with local governments, compile a list of protected customers, energy users of the first and the second group for the restriction of energy supply (hereinafter - the lists of energy users) and develop procedures for the restriction and discontinuation of electricity and natural gas supply if an energy crisis is declared. The abovementioned documents shall be submitted to the Ministry of Economics in an electronic form. The Ministry of Economics shall prepare procedures for the restriction and discontinuation of electricity and natural gas supply during a declared energy crisis and submit it to the Cabinet for approval.

[23 August 2016]

9.¹ In case of a declared State energy crisis, the natural gas storage system operator shall, within one day, submit a list of consumers of natural gas and the information on the amount of natural gas stored at Inčukalns underground gas storage facility at the moment of declaration of the energy crisis to the State Energy Crisis Centre and the natural gas distribution system operator.

[23 August 2022]

9.² For energy supply merchants which, in accordance with the laws and regulations regarding the procedures for the management and use of the electricity system, control the availability of generation units of supervisory control schedule with a capacity above 100 MW and of electricity capacity generation at least 900 hours per year, the State Energy Crisis Centre shall determine restrictions of energy consumption individually for each object of the user. The State Energy Crisis Centre shall inform the natural gas distribution system operator of the restrictions for each object of the user.

[23 August 2022]

10. The licensed gas and electricity distribution system operators shall indicate those energy users who own sources of electricity production reserves with a capacity above 200 kW in a separate group in the list of energy users.

[23 August 2016]

10.¹ If the Cabinet decides to declare a State energy crisis in the field of natural gas supply in accordance with Paragraph 33 of this Regulation and the trader of natural gas is unable to supply the protected customers with natural gas, the protected consumers shall be supplied by akciju sabiedrība "Latvenergo" [joint-stock company Latvenergo].

[23 August 2022]

10.² The joint-stock company Latvenergo has the right to request that the trader of natural gas and the natural gas distribution system operator provide information which is necessary for the performance of the function referred to in Paragraph 10.¹ of this Regulation.

[23 August 2022]

11. Each year by 1 September, the licensed natural gas and electricity distribution system operators shall review the lists of energy users, prepare and submit updated lists of energy users, as well as the procedures for the restriction and discontinuation of electricity and natural gas supply in an electronic form to the Ministry of Economics.

[23 August 2016]

12. Measures for the restriction or discontinuation of electricity and natural gas supply shall be taken by a licensed natural gas and electricity distribution system operator in the zone of operation of the licence thereof. After receipt of information about the energy crisis and the disruption of the natural gas supply, the end-user of a natural gas to whom the procedures for restricting or discontinuing the natural gas supplies apply shall not be entitled to consume a larger volume of natural gas than defined by the natural gas distribution system operator.

[28 March 2017]

12.¹ The unified natural gas transmission and storage system operator shall ensure that, each year on 1 March, there is such amount of active natural gas at Inčukalns underground gas storage facility which is necessary for ensuring the twenty-four-hour withdrawal capacity of Inčukalns underground gas storage facility in order to supply energy users of Latvia with natural gas, including during an energy crisis.

[16 November 2021]

12.² The unified natural gas transmission and storage system operator shall include the necessary technologically and economically justified costs which are related to the fulfilment of the obligations specified in Paragraph 12.¹ of this Regulation in the eligible costs of the natural gas transmission system.

[8 May 2018 / See Paragraph 38]

12.³ The unified natural gas transmission and storage system operator shall, each year by 1 April, agree upon the model for the fulfilment of the obligation referred to in Paragraph 12.¹ of this Regulation and the volume of active natural gas to be stored at Inčukalns underground gas storage facility with the Ministry of Economics and the Public Utilities Commission. The unified natural gas transmission and storage system operator may, each year by 1 December, change the volume of active natural gas necessary for the fulfilment of the obligation referred to in Paragraph 12.¹ of this Regulation and to be stored at Inčukalns underground gas storage facility, agreeing thereupon with the Ministry of Economics and the Public Utilities Commission.

[16 November 2021]

V. Heat Supply

13. Only a local energy crisis may be declared in relation to the heat energy supply.

14. Energy supply merchants who supply heat (hereinafter - energy supply merchants) shall, by taking into consideration the classification referred to in Sub-paragraphs 4.1 and 4.2 of this Regulation and by agreeing thereupon with a local government, compile lists of heat energy users of the first and second groups for the restriction of the heat energy supply and develop procedures for the restriction and discontinuation of heat energy supply if an energy crisis is declared. The abovementioned documents shall be submitted for approval to the local government in the administrative territory of which the heat supply is ensured by them.

15. Energy supply merchants shall indicate those heat energy users who own sources of heat production stocks with a capacity above 300 kW in a separate group in the list of heat energy users.

16. Each year by 1 September the energy supply merchants shall review and, if necessary, update the lists of heat energy users and the procedures for the restriction and discontinuation of heat supply, as well as submit the updated documents for approval to the local government in the administrative territory of which they ensure the heat supply.

17. The local government shall review and each year by 1 October approve the lists of heat energy users and the procedures for the restriction and discontinuation of heat energy supply if a local energy crisis is declared.

18. The documents approved by the local government referred to in Paragraph 17 of this Regulation shall be binding on the energy crisis centre of the relevant local government after the declaration of a local energy crisis.

19. If a local energy crisis is declared, the technical measures for the restriction or discontinuation of heat supply in the relevant territory shall be taken by an energy supply merchant who supplies heat.

VI. Procedures for the Use of the Emergency Stocks of Heating Fuel and Petroleum Products of Energy Supply Merchants

20. During a local energy crisis, a draft decision on the use of the emergency stocks of heating fuel of energy supply merchants shall be prepared by the energy crisis centre of the relevant local government.

21. Taking into consideration the level of energy crisis, an energy supply merchant shall inform the local government or the Minister for Economics of the necessity to use the emergency stocks of heating fuel and the emergency stocks of petroleum products and substantiate the necessity of the use.

22. During a State energy crisis, the State Energy Crisis Centre or the energy crisis centre of a local government shall, by taking into consideration the specific circumstances of the crisis, prepare a draft decision on determining the ways of the use of the emrgency stocks of heating fuel and the emergency stocks of petroleum products for energy supply merchants:

22.1. to substitute promptly one type of heating fuel with another;

22.2. to allow the energy supply merchant to commence the use of the emergency stocks of heating fuel and the emergency stocks of petroleum products;

22.3. to reduce the consumption of heating fuel;

22.4. to discontinue the use of a particular heating fuel;

22.5. to sell a specific quantity of the emergency stocks of heating fuel to the energy supply merchants indicated by the State Energy Crisis Centre;

22.6. to allow moving of petroleum products (fuel) from the holding site of the emergency stocks of petroleum products (fuel) directly to the site of the declared national or local energy crisis.

23. Taking into consideration the circumstances of the declared local energy crisis, the local government shall inform the Minister for Economics of the necessity to use the emergency stocks of petroleum products and substantiate the necessity of the use.

24. Taking into consideration the specific circumstances of a crisis, the State Energy Crisis Centre shall prepare a draft decision on the use of the emergency stocks of petroleum products, allowing the fuel merchants to move petroleum products (fuel) from the holding site of the emergency stocks of petroleum products (fuel) directly to the site of the State or local energy crisis declared.

25. If, during a State or local energy crisis, it is necessary to use the emergency stocks of petroleum products (fuel) and to move petroleum products (fuel) to licensed places of fuel retail trade, the State Energy Crisis Centre shall prepare a draft decision on the permission for merchants which hold the emergency stocks of petroleum products (fuel) or other merchants which sell fuel to supply petroleum products (fuel) from the holding site thereof directly to such licensed places of fuel retail trade which are located as close to the place of energy crisis as possible.

VII. Purchase and Sale of the Emergency Stocks of Heating Fuel and Petroleum Products

26. A draft decision on the sale of heating fuel (also stocks and emergency stocks of petroleum products) owned by energy supply merchants and fuel merchants during a State energy crisis shall be prepared by the State Energy Crisis Centre on the basis of the legal act by which the State energy crisis has been declared.

27. If an energy crisis has been declared, the State Energy Crisis Centre may prepare a draft decision specifying a duty for energy supply and fuel merchants to perform the following activities with heating fuel owned by them:

27.1. to sell in free circulation;

27.2. to sell at a fixed pre-crisis price;

27.3. to sell at a specific price which is fixed in the procurement voucher issued by the State Energy Crisis Centre;

27.4. to sell to the legal person indicated by the State Energy Crisis Centre;

27.5. to sell the emergency stocks of petroleum products at a specific price to the purchaser fixed in the procurement voucher issued by the State Energy Crisis Centre in conformity with the conditions included in procurement contracts entered into by and between the recipient of the service (the State Construction Control Bureau) and the provider of the service (merchant) as a result of open tenders referred to in Section 72, Paragraph two of the Energy Law. Taking into consideration the circumstances of the particular crisis, the State Energy Crisis Centre shall issue as many procurement vouchers as necessary.

[10 December 2019]

28. The State Energy Crisis Centre shall prepare a draft decision on the duty of energy supply merchants to sell heating fuel owned by them for a fixed pre-crisis price only if the increase in the market price may significantly affect the economic stability of the State. The decision on the application of a fixed pre-crisis price shall be published in the official gazette Latvijas Vēstnesis.

[19 February 2013]

29. The State Energy Crisis Centre shall prepare a draft decision on the duty of energy supply merchants to sell heating fuel owned by them at a fixed pre-crisis price on the basis of the average market price of the relevant type of heating fuel in the previous calendar month prior to the moment when the possible crisis became known in such a way as might have affected the market price of the relevant heating fuel.

30. A procurement voucher shall be a document issued to a particular legal or natural person by the State Energy Crisis Centre which ensures the possibility to sell or purchase a certain volume of different types of heating fuel (including the emergency stocks of petroleum products (fuel)) during a declared State energy crisis. The procurement voucher shall be completed in accordance with Annex to this Regulation. The procurement voucher shall be approved by the Minister for Economics.

31. When selling heating fuel, except for the emergency stocks of petroleum products (fuel), the State Energy Crisis Centre or the legal person specified by the State Energy Crisis Centre and the energy supply merchant shall draw up a purchase and sale deed, specifying the following therein:

31.1. the legal act by which the State energy crisis has been declared and the decision to purchase or sell the heating fuel;

31.2. the name and licence number of the seller - an energy supply merchant or fuel merchant;

31.3. the type and volume of the heating fuel intended for sale;

31.4. the officials of the purchaser and seller with the right to sign;

31.5. the name and registration number in the Enterprise Register of the legal person from which a specific volume of heating fuel is purchased or to which it is sold;

31.6. the deadline for the execution of the decision;

31.7. the procedures by which payment for the heating fuel sold shall be made; and

31.8. other circumstances and information that are significant in each particular case.

32. The decision referred to in Paragraph 20 of this Regulation shall be taken by the relevant local government.

33. The decision referred to in Paragraphs 2 and 22 of this Regulation shall be taken by the Cabinet or the relevant local government, taking into consideration the circumstances of the specific crisis.

34. The decisions referred to in Paragraphs 24, 25, 26, 27, 28, 29 and Sub-paragraph 31.1 of this Regulation shall be taken by the Cabinet.

VII.¹ Creation of the Emergency Stocks of Natural Gas

[28 March 2017]

34.¹ If the supply of natural gas is disrupted during an energy crisis, the transmission system operator shall use natural gas from the emergency stocks of natural gas (hereinafter - the stock) which have been provided in the standard supply level pursuant to Regulation (EU) 2017/1938 of the European Parliament and of the Council of 25 October 2017 concerning measures to safeguard the security of gas supply and repealing Regulation (EU) No 994/2010 for the supply of the protected customers.

[8 May 2018]

34.² The State Energy Crisis Centre shall, by taking into account the specific conditions of the crisis, prepare a draft decision on the use of the stock.

[28 March 2017]

34.³ The stock shall be held in Inčukalns underground gas storage facility.

[28 March 2017]

34.⁴ The natural gas transmission system operator:

34.⁴ 1. shall ensure the stock and its storage;

34.⁴ 2. shall inform the natural gas storage system operator of the level of the stock and agree therewith on the time line for pumping in the stock;

34.⁴ 3. the technologically and economically substantiated costs necessary for ensuring the stock shall be included into the eligible costs of the natural gas transmission system;

34.⁴ 4. shall reserve in good time the capacity of the storage and transmission system used during the energy crisis if the supply of natural gas is disrupted.

[28 March 2017 / See Paragraph 37]

34.⁵ After the Cabinet has taken the decision to use the stock:

34.⁵ 1. the natural gas transmission system operator shall, by using the capacity referred to in Sub-paragraph 34.⁴ 4 of this Regulation, transmit the stock to the natural gas distribution system operator in accordance with the terms of use of the natural gas transmission system;

34.⁵ 2. the natural gas distribution system operator shall ensure the supply of the stock received from the natural gas transmission system operator to the protected customers.

[28 March 2017]

VIII. Closing Provisions

[23 August 2016]

35. Cabinet Regulation No. 106 of 12 March 2002, Procedures for the Supply to Energy Users and Procedures for the Sale of Heating Fuel during an Announced Energy Crisis (Latvijas Vēstnesis, 2002, No. 42; 2006, No. 68; 2010, No. 160, 2011, No. 24), is repealed.

36. The licensed natural gas and electricity distribution system operators shall submit the documents referred to in Paragraph 9 of this Regulation to the Ministry of Economics by 30 September 2016.

[23 August 2016]

37. The natural gas transmission system operator shall ensure the stock referred to in Sub-paragraph 34.⁴ 1 of this Regulation and its storage from 1 October 2017.

[28 March 2017]

38. [16 November 2021]

Prime Minister V. Dombrovskis

Minister for Economics A. Kampars

Annex
Cabinet Regulation No. 312
19 April 2011

[10 September 2013]

APPROVED BY

Minister for Economics - the head of the State Energy Crisis Centre

PROCUREMENT VOUCHER*
No. ____

Riga, ____ _____________ 20____

3. General procedures for payment for the heating fuel sold:

3.1. This procurement voucher ensures and guarantees that the SELLER will sell

and the PURCHASER will purchase

3.2. the SELLER undertakes to sell the heating fuel referred to in Sub-clause 3.1 in the indicated quantity for the total purchase sum EUR (sum in words), including the value added tax rate;

3.3. the PURCHASER undertakes to purchase the heating fuel referred to in Sub-clause 3.1 in the indicated quantity for the total purchase sum EUR (sum in words), including the value added tax rate;

3.4. the SELLER and the PURCHASER shall draw up the deed on the purchase and sale of heating fuel** or shall enter into the heating fuel purchase and sale contract***.

4. The procurement voucher shall enter into effect on the day of its approval.

5. When purchasing and selling the emergency stocks of petroleum products, the State Energy Crisis Centre shall delegate the PURCHASER to make payment (the payer shall be the purchaser of petroleum products indicated in the requisites in this procurement voucher, i.e., the energy user referred to in Sub-paragraphs 4.1 and 4.2 of Cabinet Regulation No. 312 of 19 April 2011, Procedures for the Supply of Energy Users and Sale of Heating Fuel during a Declared Energy Crisis, (hereinafter - the Regulation), for example, the State Fire and Rescue Service, hospital, the State Police) for the supplied volume of petroleum products not later than within 48 hours after the issue of the procurement voucher to the SELLER. The day when the procurement voucher was approved shall be deemed as the day of issue of the procurement voucher.

6. Other information (to be completed in special cases upon request of the seller or purchaser)

7. Legal address and requisites of the seller and purchaser

Notes.

1. * Only the clauses of the procurement voucher needed in each particular case shall be completed.

2. ** The minimum requirements for the deed on the purchase and sale of heating fuel are indicated in Paragraph 31 of Regulation.

3. *** A standard commercial service contract may be used as a heating fuel purchase and sale contract. The minimum requirements to be included in the contract are indicated in Paragraph 31 of Regulation.

4. **** If the seller and purchaser are natural persons, the given name, surname, personal identity number, address of the actual place of residence shall be indicated in the requisites.

Minister for Economics A. Kampars

Translation © 2023 Valsts valodas centrs (State Language Centre)