Decision No. 1/14 of the Board of the Public Utilities Commission

Adopted 23 October 2014

Regulations Regarding the General Authorisation, Registration and Submission of Information in the Water Management Sector

[21 December 2017]

Issued pursuant to
Section 5, Paragraph three, Clause 1 of the Law
on Water Management Services and Section 9,
Paragraph one, Clause 2, Section 18.¹,
Paragraphs two and four, and Section 25,
Paragraph one of the law On Regulators of Public Utilities

[28 October 2021]

I. General Provision

1. The regulations regarding the general authorisation, registration and submission of information in the water management sector (hereinafter - the regulations) prescribe:

1.1. the requirements for the registration of the providers of water management services (hereinafter - the merchant);

1.2. the procedures by which the merchant shall send a registration notification or a notification on the termination of activities to the Public Utilities Commission (hereinafter - the regulator);

1.3. the information to be included in the registration notification and the notification on the termination of activities;

1.4. the information to be included in the Register of Merchants;

1.5. the procedures by which the merchant shall be excluded from the Register of Merchants and re-registered;

1.6. the procedures by which the regulator shall inform the submitter of a registration notification of the time period within which it will be registered, of the right to commence the provision of the public utility service, if a decision of the regulator to refuse to register the submitter of a registration notification has not been received within the prescribed period, and of the possibilities to appeal the respective decision of the regulator;

1.7. the provisions of the general authorisation to be complied with by the merchant in providing the water management services (hereinafter - the provisions of general authorisation);

1.8. the procedures by which the merchant shall submit information to the regulator, and also the content, amount and deadline of the information to be submitted.

[21 December 2017]

II. Registration Notification and Notification on the Termination of Activities

2. The merchant shall send to the regulator the registration notification which is drawn up in accordance with Annex 1.

3. The merchant shall submit to the regulator information regarding changes in the name, zone of activities thereof, and also in the rest of the information included in the Register of Merchants within 30 days after making the respective changes. If the merchant's zone of activities changes due to the adding of an additional territory, the merchant shall at the same time specify the uniform tariff approved for the merchant to be applied to the customers of water management services in the territory added for the merchant, or the fee or tariff for water management services previously applied to the customers of water management services in the additional territory in accordance with Paragraph 21.² or 21.³ of this Regulation, providing a justification taking into account Paragraph 21.⁴.

[28 October 2021]

4. If the merchant ceases to provide the water management services, it shall send a notification to the regulator on the termination of activities in accordance with Annex 2.

5. The merchant shall be liable for the veracity of the provided information.

6. The regulator has the right to request the merchant to clarify the information included in the registration notification and the notification on the termination of activities. The registration notification and the notification on the termination of activities shall be regarded as having been submitted on the day when the regulator has received all the necessary information.

[22 December 2016]

7. If the notification is submitted electronically, electronic copies of the documents supporting the notification shall be appended and attested with a safe electronic signature and time stamp in accordance with the laws and regulations regarding drawing up of electronic documents.

8. After receipt of the registration notification, the regulator shall send the following information to the e-mail address indicated by the merchant in the registration notification within five working days:

8.1. the time period within which the merchant will be registered with the Register;

8.2. the right to commence the provision of the public utility service, if the decision of the regulator to refuse to register the merchant with an indication of the possibility to appeal the decision has not been received within the specified period.

III. Register of Merchants

9. The regulator shall maintain and update the Register of Merchants on its website www.sprk.gov.lv, indicating the last date of updating the Register.

10. The following information shall be included in the Register of Merchants:

10.1. name;

10.2. unified registration number;

10.3. [22 December 2016];

10.4. amount of the provided water management service (m³ per year);

10.5. territory where the water management services are provided;

10.6. registration date;

10.7. if the merchant has been excluded from the Register of the Providers of Water Management Services, the date when the merchant was excluded from the Register.

IV. Procedures for Excluding the Merchant and Suspending Its Activities

11. The merchant shall notify the regulator of suspending activities of the merchant no later than 30 days in advance.

12. The merchant shall notify the regulator of the termination of the provision of the water management service no later than 90 days in advance.

13. The regulator shall exclude the merchant from the Register:

13.1. upon receipt of a written notification from the merchant;

13.2. if the merchant has been excluded from the Commercial Register;

13.3. if conditions demonstrating that the activities of the merchant must no longer be regulated in accordance with the law On Regulators of Public Utilities or other laws and regulations of the respective field have been found;

13.4. if the economic activity of the merchant has been suspended;

13.5. if the merchant has repeatedly violated the provisions of general authorisation.

[22 December 2016; 28 October 2021]

13.¹ If the merchant at the moment of submitting the notification on the termination of its activities has not paid the State fee in accordance with the procedures specified in laws and regulations, the regulator shall take a decision in which it shall prescribe the merchant the obligation to pay the debt of the State fee. If the merchant does not comply with the decision of the regulator on the payment of the debt of the State fee, the regulator shall ensure the compliance with the decision of the regulator in accordance with laws and regulations.

[22 December 2016]

14. If the regulator establishes elements of an administrative offence in the activities of the merchant, the regulator shall initiate proceedings within the framework of an administrative offence case in accordance with the laws and regulations in the field of administrative liability.

[7 March 2019]

15. If within a year the merchant repeatedly commits a similar offence, the regulator shall initiate proceedings within the framework of an administrative offence case in accordance with the laws and regulations in the field of administrative liability and may take a decision on the exclusion of the merchant from the Register of Merchants.

[7 March 2019]

16. [7 March 2019]

17. [7 March 2019]

18. For re-registration the merchant shall send a notification to the regulator in accordance with Paragraph 2 of these regulations.

19. The regulator shall make a note in the Register on the suspension of economic activities of the merchant on the basis of a mandatory requirement of the State Revenue Service, which has been sent to the regulator in accordance with the law On Taxes and Duties.

20. The regulator shall make a note in the Register on the suspension of activities of the merchant on the basis of an entry in the Commercial Register on the suspension of activities of the merchant.

V. Regulations Regarding the General Authorisation and Submission of Information

[21 December 2017]

21. The merchant has the right and an obligation to perform commercial activities in the provision of water management services in accordance with the law On Regulators of Public Utilities, special laws and regulations of the regulated field and the decisions of the regulator.

21.¹ After the merchant has been registered in the Register of Merchants, it shall, within six months from the day of registration, submit to the regulator a draft tariff that has been calculated in accordance with the methodology for the calculation of tariffs for the water management services determined by the regulator together with the justification of the costs forming the tariffs referred to in the calculation of the draft tariff. If due to objective reasons the merchant cannot submit a calculated draft tariff together with the justification of the costs forming the tariffs referred to in the calculation of the draft tariff within six months, the merchant shall, indicating objective reasons, request the regulator to determine another time period for the submission of the draft tariff and justification of the costs forming the tariffs referred to in the calculation of the draft tariff. Until the regulator approves the draft tariff, the merchant shall apply the fee or tariff previously determined for water management services to the settlements with customers of public utilities services.

[7 March 2019; 28 October 2021]

21.² After the taking over of the additional territory for the provision of regulated public water management services, if the indicators of the amount of water management services used for the calculation of the merchant's applicable tariff change by less than 10 % within the entire zone of activities in comparison with the forecasts specified in Paragraph 21.⁴ for the annual period and:

21.²1. if a uniform tariff is approved for the merchant in the entire zone of activities, the merchant shall apply its applicable uniform tariff to the customers of water management services in the added territory;

21.²2. if different tariffs for different administrative territories are approved for the merchant in its zone of activities, the merchant shall apply in the added territory the fee or tariff for water management services previously applied to the customers of water management services until the tariff determined by the regulator comes into force.

[28 October 2021]

21.³ After the taking over of the additional territory for the provision of regulated public water management services, if the indicators of the amount of water management services used for the calculation of the merchant's applicable tariff change by more than 10 % within the entire zone of activities in comparison with the forecasts specified in Paragraph 21.⁴ for the annual period, the merchant shall apply in the added territory the fee or tariff for water management services previously applied to the customers of water management services until the tariff determined by the regulator comes into force and shall calculate and submit to the regulator a new draft tariff within six months after the registration of the additional territory for the provision of regulated public water management services with the Register of Merchants. If due to objective reasons the merchant cannot submit a calculated draft tariff together with the justification of the costs forming the tariffs referred to in the calculation of the draft tariff within six months, the merchant shall, indicating objective reasons, request the regulator to determine another time period for the submission of the draft tariff and the justification of the costs, and the regulator may set another time period.

[28 October 2021]

21.⁴ The forecasted indicators of the amount of water management services in the united territory after the addition of another territory shall be determined on the basis of the merchant's last report on the costs and revenue, amount of the public services provided, and the stated amount of water supply and sewerage systems services for the previous reporting year (Annex 3 to this Decision, territory of activities in accordance with the applicable tariff calculation), expected changes in the amount of water management services, and the indicators of the amount of water management services in the added territory in the previous reporting year or the last whole 12 months.

[28 October 2021]

22. The merchant must provide and maintain the objects necessary for the provision of water management services.

23. The merchant must ensure continuous provision of the public utility service, conformity with the safety requirements of public utility services laid down in the regulated field, as well as the quality of public utility services in accordance with the law On Regulators of Public Utilities, and laws and regulations, technical regulations, standards and contractual provisions in the regulated field.

23.¹ Upon a reasoned request of customers or other persons, the merchant shall ensure the provision of the public utility service in accordance with the procedures provided for in the laws and regulations, if the financial capacity of the merchant or the technical capacity of the objects or infrastructure allows it.

[21 December 2017]

24. The merchant shall inform the regulator on a regular basis regarding activities and changes therein in accordance with laws and regulations and decisions of the regulator.

25. The merchant shall provide to the regulator information in accordance with the law On Regulators of Public Utilities, special laws and regulations in the regulated field, and decisions and requests of the regulator. The merchant shall submit information to the regulator in accordance with the procedures provided by it.

[21 December 2017]

25.¹ Once in a calendar year, within two weeks after the time period laid down in the Law on the Annual Financial Statements and Consolidated Financial Statements for the submission of the annual financial statement to the State Revenue Service, the merchant shall submit to the regulator the report referred to in Annex 3 of this Regulation on the costs and revenue, amount of provided public utility services, characterisation of water supply and sewerage systems in the reporting year. The merchant shall submit information for each territory of operation of a tariff.

[21 December 2017]

26. The merchant shall provide the regulator with an opportunity to monitor the quality of the provision of the public utility service and conformity with the provisions of general authorisation. The merchant shall provide the regulator with information regarding the results of economic and financial activities of the merchant, as well as provide the regulator with access to performing inspections.

27. The merchant shall arrange separate accounting for each type of the public utility service in accordance with the special laws and regulations of the regulated field.

28. In case of force majeure circumstances, the merchant has an obligation to implement all measures necessary to continue to conform to and fulfil the provisions of general authorisation.

29. The merchant shall pay the State fee for the regulation of public utility services in the amount and in accordance with the procedures laid down in laws and regulations.

30. The merchant has the right to suspend, cease or terminate the provision of the public utility service in accordance with the procedures laid down in laws and regulations.

VI. Final Provisions

31. Merchants, which have a valid licence to provide water management services on the day of coming into force of these regulations, need not submit a registration notification. The regulator shall register such merchants with the Register of Merchants upon its own initiative.

31.¹ If the merchant has been registered with the Register of Merchants until 15 April 2019 and the public utility service provided by the merchant does not have a tariff for the public utility service approved by the regulator or municipal regulator, the merchant shall, until 15 October 2019, submit to the regulator a draft tariff calculated in accordance with the methodology specified by the regulator together with the justification of the costs forming the tariffs referred to in the calculation of the draft tariff. If due to objective reasons the merchant cannot submit a calculated draft tariff together with the justification of the costs forming the tariffs referred to in the calculation of the draft tariff until 15 October 2019, the merchant shall, not later than by 16 September 2019 and indicating objective reasons, request the regulator to determine another time period for the submission of the draft tariff and justification of the costs forming the tariffs referred to in the calculation of the draft tariff.

[7 March 2019]

32. These regulations shall come into force on the day following the publication thereof in the official gazette Latvijas Vēstnesis.

Acting in the capacity of the Chair of the Board of
the Public Utilities Commission, board member R. Irklis

Annex 1
Decision No. 1/14 of the Public Utilities Commission
Adopted 23 October 2014

[22 December 2016; 21 December 2017]

Notification on the Registration of the Provider of the Water Management Service

General information regarding the merchant

[X] I agree that the regulator shall send documents and notifications to the electronic mail address indicated in this registration notification, using the official electronic mail address of the regulator sprk@sprk.gov.lv, in accordance with Section 9, Paragraph two of the Law on Notification, and they shall be deemed as notified on the second working day after sending thereof. The regulator and the merchant may also use other means of notification specified in the Law on Notification in their mutual communication.

I am informed that the information regarding the State fee calculated for the regulation of the public utility service must be submitted to the regulator in accordance with the procedures and within the time period specified by it not later than within 30 days after registration of the merchant in the Register.

for the provision of public service - provision of water management services.

Information regarding provision of water management services

I hereby confirm that the merchant has in its the ownership or use the fixed assets which may ensure the continuity and quality of the provision of registered water management services in accordance with the requirements of laws and regulations.

I hereby confirm that the information provided is true.

Date ____.____.__________________

Annex 2
Decision No. 1/14 of the Public Utilities Commission
Adopted 23 October 2014

[22 December 2016; 21 December 2017]

Notification on Termination of Activities

[X] I agree that the regulator shall send documents and notifications to the electronic mail address indicated in this notification on the termination of activities, using the official electronic mail address of the regulator sprk@sprk.gov.lv, in accordance with Section 9, Paragraph two of the Law on Notification, and they shall be deemed as notified on the second working day after their sending. The regulator and the merchant may also use other means of notification specified in the Law on Notification in their mutual communication.

from the register of providers of water management services from ____ _______________ 20____*

State fee in the amount of EUR _______ for the regulation of public utility services in _____ [year] has been paid on __ ______ _____ [date].

I hereby acknowledge that the respective local government(s) is (are) informed.

Date ____.____.__________________

Notes:

* - if the merchant has indicated a date before which the regulator may exclude the merchant from the Register, the regulator shall exclude the merchant from the Register on the date indicated by the regulator, indicating it in the Register.

** - need not be indicated, if the merchant is excluded from the Commercial Register. In cases when the merchant ceases to provide the water management services, indicate the merchant which will provide this service.

Annex 3
Decision No. 1/14 of the Public Utilities Commission
Adopted 23 October 2014

[21 December 2017]

Report on the costs and revenue of the provided public utility services, amount of the provided services and characterisation of water supply and sewerage systems^{[1] [2]}

1. Costs and revenue

Table 1

2. Characterisation of water supply systems and amounts of services in the reporting year

Table 2

3. Characterisation of sewerage systems and amounts of services in the reporting year

Table 3

If, by comparing with the information included in the applicable tariff and report of the previous year, the total costs of the water management services have changed by more than 10 % or the amount of water management services have changed by more than 10 %, and the number of connections and lengths of water management engineering networks have changed by more than 10 % in comparison with that indicated in the report of the previous year, significant changes in the technological process have occurred, economic activity has been terminated or new economic activity has been commenced, the explanation must include justification of such changes.

[1] Information regarding the reporting year shall be prepared in accordance with the methodology for the calculation of tariffs for the water management services issued by the Public Utilities Commission.

[2] According to Paragraph 25.¹, the information of the report shall be collected individually for each territory of operation of a tariff.

[3] Indicate when the applicable tariff has been calculated by including the return on capital in costs.

[4] Including the part of the depreciation of fixed assets which is being reduced in accordance with the requirements of the methodology for the calculation of tariffs for the water management services.

[5] Number of accidents within the water management engineering networks in the reporting year - number of ruptures and other significant damages of the water supply engineering networks found in the reporting year.

Number of accidents within the sewerage engineering networks in the reporting year - number of ruptures, blockages, cave ins and other significant damages of the gravity sewerage engineering networks and sewerage pressure lines.

Number of accidents within the sewerage pumping stations in the reporting year - number of significant damages found within the sewerage pumping stations in the reporting year that have caused malfunction of pumping stations, except for the electricity supply interruptions.

[6] Indicate whether any of the systems characterised in Table 2 or 3 of the report provides centralised water management services in several populated areas (names of the populated areas must be indicated), or whether any of the individually characterised systems is connected with another individually characterised system. In case of an individually characterised, but connected systems, to explain in which system the water production / wastewater treatment facilities are located.

Date ____.____.__________________

Translation © 2022 Valsts valodas centrs (State Language Centre)