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LEGAL ACTS OF THE REPUBLIC OF LATVIA
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The translation of this document is outdated.
Translation validity: 13.09.2022.–30.04.2023.
Amendments not included: 04.04.2023., 27.02.2024.

Text consolidated by Valsts valodas centrs (State Language Centre) with amending decisions of:

21 January 2020 [shall come into force on 25 January 2020];
10 August 2021 [shall come into force on 13 August 2021];
14 October 2021 (Constitutional Court Judgment) [shall come into force on 15 October 2021];
25 January 2022 [shall come into force on 29 January 2022];
6 September 2022 [shall come into force on 13 September 2022].

If a whole or part of a paragraph has been amended, the date of the amending regulation appears in square brackets at the end of the paragraph. If a whole paragraph or sub-paragraph has been deleted, the date of the deletion appears in square brackets beside the deleted paragraph or sub-paragraph.


Republic of Latvia

Cabinet
Regulation No. 78

Adopted 7 February 2017

Regulations Regarding the Trade and Use of Natural Gas

Issued pursuant to
Section 107, Paragraphs three, five and seven,
and Section 109, Paragraph four
of the Energy Law

[25 January 2022]

I. General Provisions

1. This Regulation prescribes:

1.1. the procedures for supplying and discontinuing the supply of natural gas to system users, the requirements for secure use of the natural gas system, the rights and obligations of a trader, public trader, system operator, system user and owner of a gasified object in the supply and use of natural gas;

1.2. the procedures for settling payments for the received services, the amount of late payment interest, the procedures for changing traders, and the supply of system users in the case of disruptions in the supply of natural gas;

1.3. the procedures for ensuring the supply of natural gas to captive consumers by a public trader;

1.4. the procedures for selecting a public trader;

1.5. the procedures for determining and publishing the price for the supply of last resort for final non-captive consumers and the gasified objects of which are connected to the natural gas distribution system;

1.6. the procedures for providing the liquefied natural gas service.

[10 August 2021]

2. Terms used in this Regulation:

2.1. permitted maximum load - the largest quantity of natural gas which a system user may use per hour;

2.2. gross calorific value - the quantity of heat (energy) derived under standard circumstances, as one cubic metre of natural gas undergoes complete combustion at constant pressure in the air when all products evolved during combustion have cooled until the determined initial temperature of reagents and are in gaseous state, except for water derived during combustion. The quantity of heat also includes the heat released during the condensation of water vapour in combustion products;

2.3. accident - an event which has occurred in the natural gas supply system as a result of technical defects, incorrect operation or exposure to other unforeseen factors and has posed a threat or caused harm (including losses) to human health, life, property and environment;

2.4. emergency situation - damages in the natural gas supply system or other unforeseen circumstances which may pose a threat to human health, life, property and environment or cause harm (including losses);

2.5. balancing responsibility - an obligation to settle payments with a transmission system operator for natural gas imbalance in a gasified object equipped with a place for daily accounting in accordance with the terms of use of the natural gas transmission system;

2.6. natural gas appliance - an appliance fuelled with natural gas;

2.7. propriety border of the natural gas supply system - the place of division of ownership and responsibility between the natural gas supply systems of the system operator and the user;

2.8. natural gas facility - equipment from the closing device upstream the natural gas appliance up to a flue gas discharge system. Natural gas facility shall consist of a gas pipe connecting the gas appliance to its upstream closing device, a gas appliance, and devices necessary for the air supply to enable the combustion of natural gas and devices necessary for the discharge of flue gas;

2.9. natural gas connection contract - a contract entered into between the distribution system operator and the owner of the gasified object for the installation of system connection;

2.10. calorific value area of natural gas - a part of the distribution system which is determined in the contract between the distribution system operator and the transmission system operator and for which the individual average daily weighted gross calorific value is calculated;

2.11. natural gas trader - a merchant registered in accordance with the procedures laid down in the Energy Law whose commercial activity is the trade in natural gas;

2.12. natural gas trade contract - a contract entered into between the natural gas trader and the system user for the trade in natural gas;

2.13. natural gas trade period - a time period specified in the natural gas trade contract, in which the trader has an obligation to trade natural gas to system users for the price agreed upon in the natural gas trade contract and the system user has an obligation to settle payments for the received natural gas;

2.14. gas day - the time period from 5:00 to 5:00 UTC (Universal Time Coordinated) in the following day during the winter-time period and from 4:00 to 4:00 UTC in the following day during the summer-time period;

2.15. place for daily accounting - the place for the accounting of natural gas where telemetry system has been installed for automated remote reading of provisional data of commercial meters and the distribution system operator remotely reads the data of a commercial meter (including quantity of the received natural gas) at least once a day, or the place for the accounting of natural gas where telemetry system has not been installed for automated remote reading of provisional data of commercial meters, but the system user has an obligation to communicate readings of commercial meters once a day in accordance with the procedures for using distribution system services;

2.16. commercial meter - a measuring instrument or a system of measuring instruments for the accounting of natural gas consumption for the purposes of settlement of payments and control of the permitted maximum load and natural gas parameters;

2.17. natural gas supply system of the system user - the aggregate of natural gas pipelines, closing devices, natural gas facilities and other technical facilities installed on the user's side of the proprietary border for supplying the system user with natural gas;

2.18. place for non-daily accounting - the place for accounting of natural gas where telemetry system has not been installed for automated remote reading of provisional data of commercial meters and the data of a commercial meter are read less than once a day;

2.19. imbalance - the difference between the volume of natural gas nominated by the natural gas trader and that consumed by the system user;

2.20. period for the settlement of payments - a time period for which payments are settled. The period for the settlement of payments is one calendar month, unless the parties have agreed otherwise;

2.21. person responsible for the gas-handling facility - a person who according to the standard LVS 445-1:2011, Operation and Maintenance of Natural Gas Distribution and System User Supply Systems with Max. Operation Pressure 1.6 Mpa (16 bar). Part 1: General Requirements, has been attested for working with the natural gas supply systems and gas facilities of the system user and ensures safe operation of such systems and facilities;

2.22. standard consumption profile - a mathematical model of the distribution system operator for forecasting natural gas consumption applicable to the place for non-daily accounting. The distribution system operator shall develop the consumption standard profile and specify the number thereof on the basis of historical data of natural gas consumption;

2.23. transmission system operator - a licensed energy supply merchant that provides natural gas transmission system services;

2.24. transmission system service - transportation of natural gas in the transmission system;

2.25. transmission system service contract - a contract entered into between the transmission system operator and the natural gas trader or system user for the provision of transmission system services and other services;

2.26. service of supply of last resort - temporary supply of natural gas to the system user whose gasified object has been connected to the distribution system and who has a valid natural gas trade contract with the natural gas trader that terminates the trade in natural gas or temporary supply of natural gas to the owner of the gasified object if natural gas is used in the gasified object without a valid natural gas trade contract;

2.27. seal - a security mechanism installed by a producer, system operator or an accredited inspection authority in order to prevent and establish interference or an attempt to interfere in the natural gas supply system or a commercial meter;

2.28. distribution system operator - a licensed energy supply merchant that provides natural gas distribution system services;

2.29. distribution system service - transportation of natural gas in the distribution system;

2.30. distribution system service contract - a contract entered into between the distribution system operator and the natural gas trader or system user for the provision of distribution system services and other services;

2.31. system facilities - equipment for the regulation, accounting, cathodic protection, lightning protection, telemetry, and measuring of pipework, as well as other technological equipment located in the pipework;

2.32. standard conditions - conditions when the pressure of natural gas is 101.325 kPa and the temperature is 20 °C;

2.33. interval of trade - a period of twenty-four hours which corresponds to the gas day;

2.34. liquefied natural gas system operator - an energy supply merchant providing the liquefied natural gas service;

2.35. compensation for the reduction of payments for the consumed natural gas (hereinafter - the compensation) - State budget financing which is used to cover foregone revenues of the natural gas trader (including value added tax) from application of a discount on the payments for the consumed natural gas (hereinafter - the reduction of payments).

[10 August 2021; 25 January 2022]

II. Use of the Natural Gas Supply System of the System User

3. The distribution system operator shall connect a new gasified object to the natural gas supply system or increase the permitted maximum load of a system user in a gasified object according to the regulations regarding the natural gas system connection approved in accordance with the procedures laid down in laws and regulations.

4. If the system user and the distribution system operator have agreed on increasing or decreasing the permitted maximum load in the gasified object, the distribution system operator shall inform the natural gas trader of changes in the permitted load.

[21 January 2020]

4.1 The system user whose gasified object has been equipped with a place for daily accounting has the right to submit to the system operator an application for using lower load than the permitted maximum load specified for the gasified object of the system user (hereinafter - the applied load), provided that the following conditions are met:

4.1 1. the commercial meter of the gasified object of the system user has been equipped with a system for automated remote reading of provisional data of the commercial meters (telemetry);

4.1 2. the permitted maximum load of the gasified object of the system user exceeds 65 m3/h;

4.1 3. the applied load is not smaller than 50 % of the permitted maximum load for the gasified object and is not smaller than 66 m3/h.

[21 January 2020]

4.2 The system user may submit the application for using lower load to the distribution system operator once a year by the date specified by the distribution system operator. The applied load shall be applied from the first day of the next month until the moment when the system user requests to restore the permitted maximum load.

[21 January 2020]

5. The distribution system operator shall provide the system user with consultation on the procedures for the establishment of the connection, change of the permitted load, use and accounting of natural gas, and also control of the accuracy of operation of the commercial meter.

[10 August 2021]

6. The system user shall ensure that the natural gas supply system of the system user has been built in compliance with the requirements of laws and regulations governing construction and fire safety and before putting into service has passed all the strength and leakproofness tests laid down in laws and regulations, and the compliance of the natural gas facilities with central discharge of flu gas, pipes for discharge of flu gas and installation thereof with the requirements of laws and regulations, the technical condition of flues and the connection to the flue have been certified by an inspection report on the technical condition.

7. Prior to releasing natural gas in the natural gas supply system of the system user for the first time a representative of the distribution system operator that performs release of the natural gas for the first time shall brief the system user on the use of natural gas supply system, the obligation to comply with the requirements laid down in this Regulation for the use of natural gas supply system, and the responsibility of the system user if the requirements are not complied with, as well as provide the system user with contact details of the emergency service and system user service of the distribution system operator. The distribution system operator shall ensure that the briefing of the system user is registered.

8. The use of natural gas supply system, including the natural gas facilities and appliances, shall be allowed to be used if it has been installed and put into operation in accordance with the procedures laid down in laws and regulations and during operation complies with the requirements laid down in laws and regulations.

9. The Ministry of Economics, in cooperation with the relevant technical standardisation committee, shall recommend to the national standardisation body a list of the standards to be applied for the fulfilment of the requirements of this Regulation. The national standardisation body shall publish the list of the applicable standards on its website.

10. The system user shall be responsible for safe operation of the natural gas supply system of the system user and compliance of the technical condition thereof with laws and regulations. Before commencing the use of natural gas, the system user has an obligation to become acquainted and comply with the instructions for use of the natural gas facilities and appliances and fire safety requirements during the operation in order to safely use the natural gas supply system.

11. The system user shall ensure that installation, technical servicing, maintenance, repair and technical supervision of the natural gas supply system is performed by a specialist with appropriate qualification who performs and documents all the works related to the technical servicing, maintenance, repair and technical supervision of the natural gas supply system in accordance with the procedures laid down in laws and regulations.

12. The system user shall ensure that the obligations referred to in Paragraphs 8, 10 and 11 of this Regulation are fulfilled by the person who operates the natural gas supply system of the system user.

13. Any costs related to the technical servicing, maintenance, repair, reconstruction and technical supervision of the natural gas supply system of the system user shall be covered by the system user.

14. A non-household consumer shall assign in writing and constantly ensure an appropriately attested person responsible for the gas-handling facility in the gasified object, which is an industrial or public structure, as well as in other gasified objects, provided that a natural gas appliance is installed therein with the nominal heat capacity above 130 kW or natural gas appliances with the total nominal heat capacity above 130 kW. The non-household consumer shall inform the distribution system operator about the assigned person responsible for the gas-handling facility in the gasified object according to the procedures laid down by the distribution system operator. The distribution system operator shall process the data of the said responsible person in accordance with the laws and regulations governing the protection of personal data.

[21 January 2020]

15. The person responsible for the gas-handling facility shall, at least once a year, inspect the natural gas supply system of the system user and brief the persons who operate the natural gas supply system of the system user on the use of natural gas supply system and the obligation to comply with the requirements laid down in this Regulation for the use of natural gas supply system. The person responsible for the gas-handling facility shall provide a written opinion to the system user on the results of the inspection and the performed briefing. The opinion shall include information on the compliance of the natural gas supply system of the system user with the requirements laid down in laws and regulations, the preconditions for further safe operation of the natural gas supply system of the system user, as well as accompanying document which certifies the performed briefing.

16. The system user shall coordinate the disconnection and repair of the natural gas supply system of the system user or natural gas facilities or appliances, and the connection thereof after repair, as well as the connection or replacement of new natural gas supply systems of the system user or natural gas facilities or appliances with the distribution system operator.

17. The system user shall not arbitrarily connect the natural gas supply system of the system user to a natural gas supply system of another system user or discontinue continuous use of natural gas by arbitrarily disconnecting natural gas facilities. The said activities shall be performed by a specialist with appropriate qualification in accordance with the procedures laid down in laws and regulations.

18. The system user has an obligation to, in accordance with the procedures laid down in laws and regulations, ensure periodic inspection and cleaning of ventilation system and flues in a gasified object. Maintenance of the technical condition of the ventilation system and flues in a gasified object shall be conducted by a person with appropriate qualification.

19. Where the leakage of natural gas has been established, emergency situation has arisen or accident has occurred in the natural gas supply system of the system user, the system user shall immediately notify the emergency service of the distribution system operator of this fact, and ensure that the representatives of the distribution system operator have access to the gasified object.

20. The system user shall immediately notify the distribution system operator of a disruption in the supply of natural gas.

21. The system user has an obligation to comply with the restrictions determined in protective zones of gas pipes, system facilities and structures, and to ensure free access for transport to gas pipes, system facilities and structures in order to perform repair, connection or disconnection of the natural gas supply system or technical servicing, maintenance and technical supervision thereof.

22. The responsibility for the technical condition of the internal natural gas installation pipework located on the premises for common use and other premises of joint property in a residential building, the condition of the sealing of natural gas engineering communication inlets on the premises for common use of a residential building, as well as for the ventilation of cellars, and the compliance of the technical condition of ventilation systems and fuels with the requirements laid down in laws and regulations shall belong to an owner or legal possessor of the residential building.

23. If the technological process requires that facilities located in a gasified object have uninterrupted supply of fuel, the system user shall use other fuel during the disruption in the supply of natural gas.

III. Trade in and Supply of Natural Gas and Provision of the Liquefied Natural Gas Service

[10 August 2021]

24. Trade in natural gas for the system user shall take place in accordance with the natural gas trade contract which includes an indication of the procedures for using distribution system services, or as a service of supply of last resort in accordance with this Regulation.

25. The natural gas trade contract shall be entered into in person or by means of distance communication with the system user who has proprietary, usage or possessory rights to the gasified object.

26. The natural gas trader shall include the following in the natural gas trade contract:

26.1. the information on the contracting parties, natural gas trade period and price or procedures for the determination thereof, duration of the contract and procedures for early termination of the contract;

26.2. the information on the distribution system operator that provides distribution system services, and the system service tariffs;

26.3. the information on the permitted maximum load;

26.4. the procedures by which the system user settles payments for natural gas, imbalance of natural gas supply system of the system user and system services, as well as types of settlement;

26.5. the obligation of the natural gas trader to settle payments with the distribution system operator for the system services provided to the system user, other services and taxes;

26.6. the right of the natural gas trader to terminate the natural gas trade contract if it has become known that the system user has lost the proprietary, usage, or possessory rights to the gasified object;

26.7. the procedures for submitting and examining claims and questions;

26.8. the rights, obligations and responsibility of the parties;

26.9. the contact details of the emergency service of the distribution system operator.

[21 January 2020]

27. A non-household consumer whose gasified object has been equipped with a place for daily accounting is entitled to enter into the natural gas trade contract with several natural gas traders also for the natural gas consumed in one gasified object:

27.1. by informing the natural gas trader to which the balancing responsibility is assigned of entering into a new natural gas trade contract;

27.2. upon agreement with the natural gas trader to which the balancing responsibility is assigned on the procedures for settling payments for imbalance of natural gas supply system of the non-household consumer;

27.3. by omitting the information referred to in Sub-paragraphs 26.2, 26.3, 26.4 and 26.5 of this Regulation in the contract for trade in natural gas with the natural gas trader to which balancing responsibility is not assigned and including the information therein on the natural gas trader to which the balancing responsibility is assigned, as well as the procedures for the exchange of information between the non-household consumer and other traders.

28. Upon mutual agreement between the natural gas trader and the system user additional provisions which are not specified in this Regulation may be included in the natural gas trade contract.

29. The system user who uses natural gas in several gasified object is entitled to enter into a natural gas trade contract with one or several natural gas traders.

30. The system user shall inform the natural gas trader of the termination of the natural gas trade contract five working days in advance in accordance with the procedures laid down in this Regulation and the trade contract. If a gasified object has:

30.1. a place for non-daily accounting or a place for daily accounting where a telemetering system has not been installed for automated remote reading of provisional data of commercial meters, the system user shall take and communicate readings of commercial meter in accordance with the procedure laid down by the distribution system operator;

30.2. a place for daily accounting where a telemetering system has been installed for automated remote reading of provisional data of commercial meters, the distribution system operator shall take and communicate readings of commercial meter to the natural gas trader in accordance with the procedure laid down in the system service contract.

31. Upon the termination of natural gas trade contract the system user shall:

31.1. perform the final settlement of payments for the received natural gas, as well as the received system and other services within the time period specified in the natural gas trade contract;

31.2. pay the fee for early termination of the contract, if such is provided for in the natural gas trade contract;

31.3. in order to discontinue the supply of natural gas, ensure access of the distribution system operator to the natural gas supply system in the gasified object, with regard to which the natural gas trade contract is terminated.

31.1 If the system user has lost the proprietary, usage, or possessory rights to the gasified object and the owner of the gasified object does not ensure that representatives of the distribution system operator may, without hindrance, access the natural gas supply systems in the gasified object, the fact that the system user cannot comply with the requirement referred to in Sub-paragraph 31.3 of this Regulation may not be the grounds for the natural gas trader to refuse termination of the natural gas trade contract with such system user.

[21 January 2020]

32. Where, upon the termination of the use of natural gas in a gasified object, the system user has failed to inform the natural gas trader about this termination and has failed to terminate the natural gas trade contract for the relevant gasified object in accordance with the procedures laid down in this Regulation, the system user shall be responsible for the settlement of payments for the consumed natural gas and the received system services until the moment the said contract is terminated.

33. The natural gas trader may unilaterally terminate the natural gas trade contract by sending a written notification of this to the distribution system operator and the system user to the address specified in the natural gas trade contract, if:

33.1. the household consumer has requested to temporarily suspend the supply of natural gas to the gasified object without terminating the natural gas trade contract, and the natural gas trader has received a request from another person who has proprietary, possessory or usage rights to the gasified object to restore the supply of natural gas to the gasified object and enter into a natural gas trade contract with this person, and the household consumer has failed to confirm the wish to continue the use of natural gas within seven working days after sending of the notification;

33.2. the circumstances referred to in Sub-paragraph 107.3 of this Regulation exist.

34. The natural gas trader shall inform:

34.1. the system user of the expiry of the natural gas trade contract at least six weeks in advance in accordance with the procedures laid down in the trade contract, except for the case when duration of the natural gas trade contract is shorter than six weeks;

34.2. the system user of the expiry of the natural gas trade contract at least 10 days in advance in accordance with the procedures laid down in the trade contract, provided that it is planned to terminate the trade in natural gas;

34.3. the distribution system operator of the expiry of the natural gas trade contract at least 10 days in advance in accordance with the procedures laid down in the distribution system service contract.

35. Natural gas shall be supplied to the system user to the proprietary border of natural gas supply system of the system user by the distribution system operator on the basis of the distribution system service contract which has been entered into with the natural gas trader.

36. Natural gas shall be supplied to the proprietary border of the distribution system by the transmission system operator on the basis of the cooperation contract between the distribution system operator and the transmission system operator or on the basis of the transmission system service contract.

37. The system user whose gasified object has been connected to a natural gas distribution system shall enter into a contract with the distribution system operator for the distribution system services, provided that transportation of the natural gas belonging to the system user includes transmission and distribution system services.

38. The proprietary border of the natural gas supply system in gasified objects shall be a place immediately behind the inlet closing device, provided there is no border statement developed for a gasified object which specifies other proprietary border of the natural gas supply system.

38.1 If the natural gas supply system of the liquefied natural gas system user is directly connected to the liquefied natural gas facility, the liquefied natural gas system user and the liquefied natural gas system operator shall mutually agree on the conditions for connecting the respective systems and providing the liquefied natural gas service.

[10 August 2021]

IV. Trade in Natural Gas to Household Consumers and Captive Consumers

39. The trade in natural gas to household consumers shall be subject to the regulation contained in Chapter III of this Regulation, insofar as this Chapter does not provide otherwise.

40. The natural gas trader shall include the following information in the natural gas trade offer for a household consumer who is not a captive consumer:

40.1. the duration of the natural gas trade contract, the natural gas trade period, the procedures for early termination of the contract, including fee for early termination of the contract if any;

40.2. the price of natural gas or the procedures for determination thereof, the procedures for settlement of payments and type thereof, and the procedures for the examination of claims;

40.3. the total anticipated costs of natural gas per kilowatt-hour (hereinafter - kWh) and cubic metre or the average monthly consumption of natural gas in a gasified object by separately indicating the price of natural gas, the fee for system services and taxes in the cost calculation.

41. The natural gas trader shall include the provisions of the natural gas trade contract, which do not differ from the offer issued to the system user, in the contract with a household consumer that is not a captive consumer and, in addition to the information referred to in Paragraph 26 of this Regulation, shall provide for the following:

41.1. the natural gas trader may apply the fee for early termination of the natural gas trade contract or amendment of trading provisions to the household consumer only in the first two years of the trade period if the natural gas trade period determined in the natural gas trade contract exceeds two years;

41.2 the household consumer is entitled to terminate the natural gas trade contract without the application of the fee for early termination of the contract if the contractual provisions are changed during the first two years of the natural gas trade period;

41.3. the fee for early termination of the contract shall be determined in proportion to the natural gas trade period until the early termination of the contract by dividing it in at least three-month periods if a fee for early termination of the contract is provided for in the natural gas trade contract entered into with the household consumer for a definite period of time;

41.4. the household consumer may terminate the natural gas trade contract by informing the natural gas trader thereof at least seven working days in advance and indicating the time when the natural gas trade contract shall be terminated.

42. The public trader shall provide the captive consumer with the natural gas trade service in accordance with the natural gas trade contract and shall provide the household consumer with the service of supply of last resort for six months at the price set for the captive consumers in accordance with the procedures laid down in the Energy Law.

[10 August 2021]

42.1 If the recipient of the service of supply of last resort has failed to, within six months from the day of sending the information referred to in Sub-paragraph 46.4 of this Regulation, comply with the obligation to enter into the natural gas trade contract, then the provider of the service of supply of last resort shall provide the service of supply of last resort at the double price set for the captive consumers in accordance with the procedures laid down in the Energy Law.

[10 August 2021]

43. In addition to the provisions of Paragraph 26 of this Regulation, the public trader shall provide for the following in the natural gas trade contract with the captive consumer:

43.1. the captive consumer has the right to terminate the natural gas trade contract without the application of the fee for early termination of the contract;

43.2. the trade in natural gas shall be ensured for the captive consumer for the price determined for captive consumers in accordance with the procedures laid down in the Energy Law.

44. A household consumer shall be considered as a captive consumer if this system user has entered into a natural gas trade contract with the public trader for trade in natural gas.

45. It shall be an obligation of the natural gas trader who ensures the natural gas trade service to the largest number of household consumers to provide natural gas trade services to captive consumers in the territory of Latvia.

46. The public trader shall:

46.1. enter into a distribution system service contract with the distribution system operator for the provision of distribution system services by agreeing upon the scope of the necessary information and the procedures for the exchange thereof, as well as the procedures for the payment of the distribution and transmission system services;

46.2. apply the price of natural gas determined for captive consumers in accordance with the procedures laid down in the Energy Law;

46.3. be responsible for the correct application of the price of natural gas determined for captive consumers;

46.4. after receipt of the information referred to in Sub-paragraph 49.2 of this Regulation, send to the gasified object information on the supply of natural gas within the scope of the service of supply of last resort and the obligation to enter into the natural gas trade contract within six months;

46.5. control the receipt of payments from captive consumers;

46.6. settle payments with the distribution system operator for the services provided by the distribution operator to captive consumers according to the tariffs approved for distribution system services;

46.7. use the following types of settlement of payments - an invoice for the period for the settlement of payments and a balanced payment;

46.8. no charge shall be applied to sending an invoice by post if the average monthly consumption of natural gas of the captive consumer over a 12-month period in the gasified object is 42 kWh per month (4 m3 per month) or less.

[10 August 2021; 6 September 2022]

47. In case of change of the public trader, the new public trader shall ensure trade in natural gas to the captive consumer and inform the distribution system operator of the change of the public trader, and this distribution system operator shall register captive consumers with the new public trader from the moment of receipt of information.

48. The distribution system operator shall inform the captive consumers of the change of the public trader by publishing information in the official gazette Latvijas Vēstnesis.

49. The distribution system operator shall:

49.1. after establishment of the connection for the captive consumer and installation of a commercial meter provide information to the public trader which is necessary for starting to settle payments for the consumed natural gas, and ensure the information on the natural gas supplied to the captive consumers which is necessary for the settlement of payments;

49.2. inform the public trader of the household consumer who is to be provided with the service of supply of last resort;

49.3. registers trade in natural gas within the scope of the service of supply of last resort for the household consumer referred to in Sub-paragraph 49.2 of this Regulation;

49.4. unless the distribution system operator is the provider of the service of supply of last resort, inform the provider of the service of supply of last resort of the system user who is other than the captive consumer, who does not have a valid natural gas trade contract and who continues consuming natural gas until the moment of entering into thereof, or who has a valid natural gas trade contract with such natural gas trader that terminates or has terminated the trade in natural gas, and register trade in natural gas within the scope of the service of supply of last resort for the respective system user.

[10 August 2021]

50. Where a household consumer that is not a captive consumer does not wish to be a natural gas market operator and wishes to use the possibility to become a captive consumer, the household consumer shall change the natural gas trader in accordance with the procedures laid down in this Regulation.

51. Where the price of natural gas has changed for a captive consumer and he or she fails to communicate readings of a commercial meter in accordance with the procedures laid down by the distribution system operator after the changes in price, the public operator shall apply the new price of natural gas to the consumed volume of natural gas from the moment of the changes in the price of natural gas.

52. The public trader has the rights and obligations of the natural gas trader provided for in this Regulation, insofar this Chapter does not provide otherwise.

53. The captive consumer has the rights and obligations of the system user provided for in this Regulation, insofar this Chapter does not provide otherwise.

53.1 The provider of the service of supply of last resort shall, after receipt of information from the distribution system operator, inform the recipient of the service of supply of last resort of the supply of natural gas within the scope of the service of supply of last resort and the obligation to enter into the natural gas trade contract within six months.

[10 August 2021]

V. Change of the Natural Gas Trader and the Balancing Responsibility

54. The system user has the right to change the natural gas trader on the first date of the month in accordance with the procedures referred to in Paragraphs 55 and 57 of this Regulation.

55. If the system user has selected another natural gas trader, it is an obligation of the selected natural gas trader to notify the distribution system operator of the entering into of a natural gas trade contract until the fifteenth date of the previous month prior to the intended change of the natural gas trader by indicating an identifier of a balancing portfolio of the transmission system user to which the concluded trade contract shall be attached.

56. The natural gas trader selected by the system user has the right to revoke the notification referred to in Paragraph 55 of this Regulation on the change of the natural gas trader until the twentieth date of the previous month prior to the intended change of the natural gas trader.

57. Until the twenty-fifth date of the previous month prior to the change of the natural gas trader the distribution system operator shall inform the current natural gas trader of the system user about this change.

58. The distribution system operator shall, upon request of the natural gas trader, provide information on the history of consumption of natural gas of the system user and the amount of the permitted load in the objects of the system user which is necessary for the natural gas trader to draw up a natural gas trade offer or contract if such information is at the disposal of the distribution system operator and the natural gas trader has received consent of the system user to the transfer of such data.

[21 January 2020]

59. Only one transmission system user may assume balancing responsibility in one gasified object.

60. Where the supply of natural gas in a gasified object takes place within the scope of the natural gas trade contract, the natural gas consumer who is a transmission system user may assign balancing responsibility to the natural gas trader by agreeing thereon in the natural gas trade contract and notifying the transmission system operator in accordance with the procedures laid down in the terms of use of the transmission system.

61. A non-household consumer who is not a transmission system user and enters into a natural gas trade contract with several natural gas traders shall be responsible for an agreement with one of the natural gas traders on balancing responsibility by including this obligation of the natural gas trader in the natural gas trade contract.

62. The provider of the service of supply of last resort shall assume balancing responsibility for natural gas consumers who receive natural gas within the scope of the service of supply of last resort.

63. The transmission system user whom the balancing responsibility is given shall settle payments with the transmission system operator for imbalance of the natural gas supply system of the user in accordance with the terms of use of the natural gas transmission system.

VI. Service of Supply of Last Resort

64. Supply of natural gas within the scope of the service of supply of last resort shall be provided for a period not exceeding six calendar months to the following:

64.1. the system user if it has a single valid natural gas trade contract with the trader that has terminated trade in natural gas;

64.2. the owner of the gasified object if natural gas is used in the gasified object without a valid natural gas trade contract and the system user or the owner of the gasified object has not provided the distribution system operator with a possibility to discontinue the supply of natural gas in the gasified object.

[10 August 2021]

65. The non-household consumer shall be provided with natural gas within the scope of the service of supply of last resort by the following:

65.1. a natural gas trader selected by the distribution system operator with which an agreement on the provision of the service of supply of last resort has been reached;

65.2. the distribution system operator, if no agreement on the provision of the service of supply of last resort has been reached with the natural gas trader or the trader is unable to provide such service.

66. A household consumer shall be provided with natural gas within the scope of the service of supply of last resort by the following:

66.1. a public trader;

66.2. the provider of the service of supply of last resort referred to in Paragraph 65 of this Regulation, if the public trader has terminated the trade in natural gas.

[10 August 2021]

67. The distribution system operator shall indicate the information on its website on the selected provider of the service of supply of last resort (the name, registration number and contact details of the merchant).

68. A system user has an obligation to, within the time periods laid down in accordance with the procedures for the settlement of payments approved by the provider of the service of supply of last resort, settle payments with the provider of the service of supply of last resort for the natural gas, system services and other services received within the scope of the service of supply of last resort, as well as for imbalance of the received natural gas in accordance with the terms of use of the natural gas transmission system.

69. The provider of the service of supply of last resort has:

69.1. the obligation to publish on its website the price of the service of supply of last resort applicable in the period for the settlement of payments 21 days before the beginning of the relevant period for the settlement of payments;

69.2. the right to request payment of an invoice within the time period which does not exceed 10 working days from the day of the sending of the invoice;

69.3. the rights and obligations of the natural gas trader provided for in this Regulation, insofar this Chapter does not provide otherwise;

69.4. the obligation to, upon receipt of information from the distribution system operator, inform the recipient of the service of supply of last resort of the supply of natural gas within the scope of the service of supply of last resort and the obligation to enter into the natural gas trade contract within six months.

[10 August 2021]

70. Within the scope of the service of supply of last resort, a system user has:

70.1. the obligation to notify readings of a commercial meter in accordance with the procedures and within the time period specified by the distribution system operator, and also to enter into a natural has trade contract with the natural gas trader within six months;

70.2. the rights and obligations of the system user provided for in this Regulation, insofar this Chapter does not provide otherwise.

[10 August 2021]

VII. Rights and Obligations of the Trader

71. Prior to the commencement of natural gas trading activity in the operation area of a licence of the distribution system operator, the natural gas trader shall enter into a distribution system service contract with the distribution system operator.

72. Upon the commencement of operation in the natural gas market, the natural gas trader has the following obligation:

72.1. to inform the system user of the economic activity, experience and possibilities thereof, as well as provide other information requested by the system user for the identification of the particular natural gas trader;

72.2. to indicate clearly and unequivocally the period of validity of the offer.

73. If the natural gas trader uses the information about the scope, quality, prices of the services of the system operator or other similar information in its presentation materials, conversations with system users or offers, it has the right to request such information from the distribution system operator. The trader shall be responsible for the accuracy and correctness of the information included in the presentation materials.

74. In order to ensure its recognition, the natural gas trader shall:

74.1. use the details indicated in the received merchant's registration certificate when taking marketing measures or carrying out activities of informative nature. Representatives of the natural gas trader shall refer to the registered natural gas trader whom they represent and in the name of whom they act;

74.2. ensure the following publicly available information about itself:

74.2.1. the name of the merchant in accordance with the Commercial Register;

74.2.2. the telephone number, legal address, electronic mail address, website of the natural gas trader where potential or existing natural gas consumers may become acquainted with the information provided by the trader;

74.2.3. the registration number in the Register of Natural Gas Traders.

75. The natural gas trader shall ensure confidentiality of the information received from the system users in accordance with the laws and regulations governing the protection of personal data and commercial secrets of legal persons.

76. The natural gas trader is entitled to request the system user to pay the late payment interest in the amount of up to 0.15 % from the sum not paid in time for each day of late payment in accordance with the procedures laid down in the Civil Law.

77. The natural gas trader has the following obligation:

77.1. to settle payments with the distribution system operator for the system services provided to the system user in the period for the settlement of payments according to the existing tariffs for system services by the date specified in the distribution system service contract;

77.2. to, at least five working days in advance, inform the distribution system operator of the termination of trade in natural gas and the household consumers that are parties to a valid natural gas trade contract at the moment of the said termination of trade in natural gas.

VIII. Rights and Obligations of the System Operator

78. The distribution system operator shall ensure continuous supply of natural gas to the proprietary border of the natural gas supply system of the system user within the limits of the permitted maximum load.

79. The distribution system operator does not have the obligation to ensure supply of natural gas to the system user if:

79.1. the system user fails to comply with the conditions of this Regulation, natural gas trade contract or receipt of the service of supply of last resort and has been informed about this in writing by the natural gas trader;

79.2. the system user uses the natural gas pipework, facilities and appliances thereof that are not put into operation in accordance with the procedures laid down in laws and regulations or fail to comply with the requirements laid down in laws and regulation during operation;

79.3. the non-household consumer has failed to enter into a contract with the natural gas trader who is given balancing responsibility, and the consumer is not a transmission system user.

80. The distribution system operator shall be responsible for the control of the compliance of quality parameters of the natural gas to be supplied with the permissible value thresholds indicated in Annex 1 to this Regulation, and is entitled to refuse the supply of natural gas or replacement gas if it fails to comply with the respective quality requirements.

[10 August 2021]

81. The distribution system operator has the right to access the natural gas supply system and commercial meters of the system user in order to fulfil its obligations laid down in laws in regulations. For the fulfilment of the said obligations, the representative of the distribution system operator shall present a service identification document which indicates the right to access the natural gas supply system in a gasified object. A sample of the service identification document shall be posted on the website of the distribution system operator.

82. The distribution system operator has the following obligation:

82.1. to provide the necessary information to:

82.1.1. the natural gas trader for drawing up the natural gas trade offer and trade contract, provided that the distribution system operator has a possibility to make certain of the veracity of the consent given by the system user;

82.1.2. the public trader for drawing up the natural gas trade contract;

82.1.3. the provider of the service of supply of last resort for ensuring the said service to the natural gas consumer;

82.1.4. the system user in relation to the access to the natural gas supply system and use of the system services;

82.2. to develop and publish on its website standard consumption profiles, the procedures for natural gas accounting and notifying readings of commercial meters, and also for determining and calculating quantity of the consumed natural gas, and other information intended for the system user;

82.3. to ensure registration of the duration and reasons for disruptions in or restrictions to the provision of distribution system services;

82.4. to register damage applications in the case of accident or damage in the natural gas supply system, and ensure the prevention of damages as soon as possible;

82.5. to ensure free of charge, upon request of the system user, that the distribution system operator has information at its disposal on the consumption of natural gas of the system user in the gasified object over the last three years.

[21 January 2020; 10 August 2021]

83. If due to damage the supply of natural gas is concurrently suspended for more than 1000 system users, the distribution system operator shall inform the system users of this through mass media.

84. The distribution system operator shall be responsible for the maintenance of the natural gas emergency service and technical provision thereof, as well as localisation and rectification of accidents.

85. If the distribution system operator has information at its disposal which suggests natural gas leakage in natural gas system of the system user and indicates an emergency situation, employees authorised by the distribution system operator have an obligation to immediately inform the system user of the said situation, as well as notify the State Police and the State Fire and Rescue Service, and invite officers of the State Police to, in accordance with the procedures laid down in the law, access premises or territory of the system user at any time of the day for rectification of the emergency situation.

86. If the distribution system operator establishes non-compliance of the installation or operation of the natural gas supply system of the system user with the requirements of laws and regulations, the distribution system operator shall inform the system user of this fact in accordance with the procedures for using distribution system services, as well as specify a time period for the elimination of deficiencies.

87. If during the inspection of the natural gas system of the system user the distribution system operator establishes an arbitrary installation of connection before a commercial meter, use of natural gas by the system user without a commercial meter, a damaged commercial meter or seal, and as a result of any of the said activities the amount of natural gas consumption reading has been reduced or a possibility has been created to use natural gas free of charge, the system operator shall draw up a statement on the established fact in two copies. One copy of the statement shall be kept by the distribution system operator, while the other shall be given to the system user or the representative thereof.

88. Due to the infringement referred to in Paragraph 87 of this Regulation the system operator shall calculate the quantity of the consumed natural gas as follows:

88.1. for a non-household consumer - on the basis of the quantity of natural gas actually consumed under similar circumstances over a similar period of time;

88.2. for a household consumer in the gasified objects containing a gas cooker and centralised hot water supply or for a household consumer in the gasified objects containing a gas cooker but no water heaters and centralised hot water supply - taking into account the differentiated monthly and annual consumption rates of natural gas referred to in Annex 2 to this Regulation;

88.3. for a household consumer whose natural gas facilities and appliances can be used for heating and for a household consumer who has installed gas water heaters - on the basis of the quantity of natural gas actually consumed under similar circumstances over a similar period of time.

[10 August 2021]

89. In case of establishing the infringement referred to in Paragraph 87 of this Regulation, the distribution system operator shall make a recalculation of the used natural gas and distribution system services by using the following formula:

K = (PDG - UDG) x (Tm + CDG) where

K - a recalculation of the used natural gas and distribution system services;

PDG - the quantity of consumed natural gas which has been calculated in accordance with Paragraph 88 of this Regulation;

UDG - the quantity of natural gas recorded with a commercial meter in the period in which the infringement referred to in Paragraph 87 of this Regulation has occurred;

Tm - the variable part of the tariffs for the distribution system services (according to the consumption group);

CDG - the price of natural gas in the amount of the price of the supply of last resort in the month when the infringement was established.

[10 August 2021]

89.1 [10 August 2021]

90. [10 August 2021]

91. The distribution system operator shall be responsible for the correct application of tariffs for the distribution system services. If the system user uses the applied load in the gasified object in accordance with Paragraph 4.1 of this Regulation, the distribution system operator shall apply the tariff which corresponds to the applied load when calculating the fees for the distribution system services.

[21 January 2020]

92. The distribution system operator and the transmission system operator have an obligation to enter into a cooperation contract under which mutual exchange of information is ensured, including exchange of information on the activities and circumstances which may affect the safety of the natural gas distribution system, as well as to provide an obligation for the distribution system operator to communicate to the transmission system operator and the natural gas trader the data on the quantity of the natural gas distributed in the distribution system per day, as well as to agree upon the procedures for communicating such data.

93. The distribution system operator and the transmission system operator shall ensure mutual exchange of information on the activities and circumstances which may affect the safety of the natural gas distribution system.

94. The distribution system operator has the right to request and receive all the necessary information from the system users and natural gas traders for the purposes of fulfilment of the obligations laid down in this Regulation and concluded contracts.

95. The transmission and distribution system operator and also the liquefied natural gas system operator shall ensure the confidentiality of the information received from the natural gas trader and the system user of the relevant system in accordance with the laws and regulations governing the protection of data of natural and legal persons and trade secrets.

[10 August 2021]

95.1 The liquefied natural gas system operator shall ensure provision of the liquefied natural gas service by performing liquefaction of natural gas or receipt, unloading, storage, and conversion of liquefied natural gas into gaseous state for further supply to the natural gas transmission system or to the system user within the limits of the permitted maximum load.

[10 August 2021]

IX. Rights and Obligations of the System User and the Owner of the Gasified Object

96. The system user and the owner of the gasified object shall be responsible for disruptions in the supply of natural gas to other consumers due to its fault.

97. The system user has the following obligations:

97.1. to provide correct information on readings of a commercial meter;

97.2. to settle payments for the consumed natural gas and provision of system services within the time periods specified in the trade contract, as well as other payments laid down in this Regulation and laws and regulations;

97.3. to ensure preservation of the installed commercial meters and seals;

97.4. to notify the distribution system operator of the established damages to commercial meters or seals immediately but not later than within 24 hours;

97.5. to cover expenses related to the harm caused to the distribution system operator, including the caused losses, provided that arbitrarily changes have been made in the natural gas supply system or damage has been caused to the natural gas supply system or commercial meter or seals thereof;

97.6. to comply with the written instructions of the distribution system operator referred to in Paragraph 86 of this Regulation within the time period specified by the distribution system operator about changes in the installation or operation of the natural gas supply system of the system user in order to ensure that natural gas is used in compliance with the requirements laid down in the natural gas trade contract and laws and regulations;

97.7. to observe the permitted maximum load of the gasified object or objects of the system user;

97.8. to inform the distribution system operator or the natural gas trader in accordance with the procedures laid down in the trade contract immediately but not later than within the relevant day when the receipt of natural gas of inadequate quality has been established;

97.9. to provide the distribution system operator and the natural gas trader with the requested information, so that the distribution system operator and the natural gas trader can, without hindrance, fulfil their obligations and exercise their rights provided for in laws and regulations and natural gas trade contract;

97.10. to ensure that the distribution system operator may access the natural gas supply system of the system user.

98. In addition to the obligations provided for in Paragraph 97 of this Regulation, the non-household consumer has the following obligations:

98.1. to ensure that representatives of the distribution system operator may, without hindrance, access natural gas systems in a gasified object and commercial meters at any time of the day, so that the distribution system operator can, without hindrance, fulfil its obligations and exercise its rights provided for in laws and regulations and natural gas trade contract;

98.2. to register and communicate data on the quantity of the consumed natural gas in accordance with the procedures and within the time period specified by the distribution system operator;

98.3. to make payments for the received natural gas and system services within the time periods, in a manner and in full amount provided for in the natural gas trade contract or in accordance with the procedures for the settlement of payments of the provider of the service of supply of last resort;

98.4. to coordinate a schedule for the receipt of the system services with the natural gas trader and follow it;

98.5. to replace the commercial meter installed in a gasified object within the time period specified by the distribution system operator.

99. In addition to the obligations provided for in Paragraph 97 of this Regulation, the household consumer has the following obligations:

99.1. to ensure that representatives of the distribution system operator may, without hindrance, access natural gas systems in a gasified object and commercial meters during day (from 8.00 to 21.00), so that the distribution system operator can, without hindrance, fulfil its obligations and exercise its rights provided for in laws and regulations and natural gas trade contract;

99.2. to communicate readings of commercial meters in accordance with the procedures specified for communicating readings of commercial meters;

99.3. to make payments for natural gas and system services in full amount according to the tariffs and in accordance with the procedures for the settlement of payments approved by the natural gas trader, public trader, or the provider of the service of last supply and within the time periods specified and in the manner determined thereby.

[21 January 2020]

100. The owner of the gasified object has the following obligations:

100.1. to survey the gasified object in its possession on a regular basis;

100.2. to ensure compliance of the technical condition and operation of the natural gas system and facilities located on the premises for common use of a multi-apartment residential building with the requirements of laws and regulations;

100.3. to ensure preservation of the commercial meters and seals installed on the premises for common use of a multi-apartment residential building and immediately notify the distribution system operator of damaged commercial meters, torn-off seals, and possible mistakes of the readings of commercial meters;

100.4. to immediately notify the distribution system operator of the damages established to the natural gas system;

100.5. to ensure that representatives of the distribution system operator may, without hindrance, access natural gas systems in a gasified object and commercial meters, so that the distribution system operator can, without hindrance, fulfil its obligations and exercise its rights provided for in laws and regulations;

100.6. the owner of the gasified object is responsible for the settlement of payments for the natural gas consumed in the gasified object and for system services, and also for the fulfilment of other obligations referred to in this Regulation if no natural gas trade contract has been entered into in the gasified object or it has become invalid;

100.7. to request that the distribution system operator discontinues the supply of natural gas in the gasified object if the system user violates the rules of safe use of the natural gas supply system and this may cause an emergency situation or an accident.

[21 January 2020]

101. The system user has the following rights:

101.1. to receive natural gas in accordance with the natural gas trade contract or within the scope of the service of supply of last resort;

101.2. to request the necessary information from the relevant market operator on the connection to the natural gas supply system, use of the system services and transfer of balancing responsibility to the trader, as well as verify and compare readings of commercial meters;

101.3. to change the natural gas consumption mode specified in the natural gas trade contract after coordination with the natural gas trader, if necessary;

101.4. to receive information from the natural gas trader or the distribution system operator on disruptions in the supply of natural gas and possible time of restoration of the supply of natural gas.

101.1 If the system user has exceeded the applied load which is used in accordance with Paragraph 4.1 of this Regulation, the system user shall be obliged to pay the additional charge for exceeding the applied load that is calculated by the distribution system operator. The additional charge for exceeding the applied load shall be calculated by using the following formula:

Pm = (Ck - Cp) x 3 where:

Pm - the additional charge for exceeding the applied load in the period for the settlement of payments;

Cp - the fixed monthly payment applicable to the system user for the applied load;

Ck - the monthly payment applicable to the system user according to the actual maximum load established in the gasified object in the period for the settlement of payments.

[21 January 2020]

102. The owner of the gasified object has the right to, at least 10 working days in advance, request that the distribution system operator discontinues the supply of natural gas in the gasified object, if the construction or repair is carried out in the natural gas system of the gasified object or the gasified object itself.

103. The distribution system operator shall examine the request from the owner of the gasified object to discontinue the supply of natural gas and, if it is established that the grounds for the request comply with Paragraph 102 of this Regulation, shall, at least five working days in advance, inform the system user and the natural gas trader in writing about the disruption in supply by indicating the reasons for and the time of this disruption.

X. Discontinuing, Restriction and Restoration of the Supply of Natural Gas

104. The distribution system operator is entitled to immediately discontinue or restrict the supply of natural gas if an accident has occurred or an emergency situation has been established.

105. The distribution system operator is entitled to immediately discontinue the supply of natural gas by informing the natural gas trader or the provider of the service of supply of last resort and drawing up a relevant statement in two copies (one of which shall be kept by the distribution system operator, while the other shall be given to the system user or the representative thereof) in the following cases:

105.1. the system user fails to comply with the permitted maximum load;

105.2. commercial meters or related telemetry or telemechanic systems or seals have been arbitrarily taken off or damaged in the gasified object;

105.3. the distribution system operator has established infringement due to which the recorded quantity of the consumed natural gas has been reduced for the system user or the possibility has been created to consume natural gas free of charge;

105.4. the natural gas supply system of the system user has been arbitrarily transformed or interference with the operation thereof has occurred, and the natural gas facilities or appliances of the system user have been arbitrarily connected, replaced or installed without complying with the requirements specified by the distribution system operator, including before a commercial meter;

105.5. upon a request of the owner of the gasified object, if:

105.5.1. the system user violates the rules of safe use of the natural gas supply system and this may create an emergency situation or an accident;

105.5.2. the contract for rent or lease of the gasified object has been terminated with the system user, and the said fact can be confirmed;

105.6. a possibility is not provided for a representative of the distribution system operator to install, replace or control readings of commercial meters, read readings and fulfil, without hindrance, other obligations and exercise other rights provided for in laws and regulations or the natural gas trade contract;

105.7. neither the owner of the gasified object nor any of the persons who use natural gas in the gasified object has entered into a natural gas trade contract or receives natural gas within the scope of the service of supply of last resort;

105.8. the use of natural gas in the gasified object has been commenced or restored arbitrarily;

105.9. the non-household consumer has failed to replace the commercial meter installed in the gasified object within the time period specified by the system operator, or the household consumer has failed to provide a possibility for the system operator to replace the commercial meter installed in the gasified object within 10 working days;

105.10. the instructions of the system operator referred to in Paragraph 86 of this Regulation on the changes in the natural gas supply system, the installation or operation of natural gas facilities or appliances have not been complied with in order to ensure that natural gas is used in accordance with the natural gas trade contract and the requirements laid down in laws and regulations.

106. The natural gas trader may send a notice to the system user on the discontinuation of the supply of natural gas after expiry of the period for the settlement of payment specified in the payment document. If the system user fails to make payments within the specified time period, which is not less than five working days, the natural gas trader shall request to and the system operator shall discontinue the supply of natural gas to the system user.

107. The distribution system operator shall discontinue the supply of natural gas by informing the relevant natural gas trader and drawing up a relevant statement in two copies. One copy of the statement shall be kept by the system operator, while the other shall be given to the system user or the representative thereof, if:

107.1. the natural gas supply system of the non-household consumer has been equipped with such commercial meters which do not comply with the metrological requirements laid down in laws and regulations, the requirements specified by the system operator or agreed upon in the connection contract, and the system user has failed to remedy the non-compliance of the commercial meters with the metrological requirements laid down in laws and regulations or the requirements specified by the system operator and agreed upon in the connection contract within the time period specified by the system operator;

107.2. the system user has failed to fulfil the obligation referred to in Paragraph 14 of this Regulation to assign a person responsible for the gas-handling facility in the gasified object, and has failed to inform the distribution system operator about this person;

107.3. the natural gas trader, the public trader or the provider of the service of supply of last resort has, at least five working days in advance, given a notice to the system user of the discontinuation of the supply of natural gas, and the distribution system operator has received a written notification from the natural gas trader, the public trader or the provider of the service of supply of last resort on the following:

107.3.1. the system user fails to make payments for the received natural gas or the received distribution system services in accordance with the procedures for the settlement of payments laid down in this Regulation, approved by the natural gas trader, the public trader or the provider of the service of supply of last resort, or within the relevant time periods, fails to make other payments related to the enforcement of the procedures for the settlement of payments approved by the natural gas trader, the public trader or the provider of the service of supply of last resort, or has failed to make a prepayment or make or restore security deposit, if such has been determined for the system user;

107.3.2. the system user has lost its proprietary, usage or possessory rights to the gasified object.

108. If the service of supply of last resort is provided by the distribution system operator and the system user fails to make payments within the time period of notice referred to in Paragraph 107 of this Regulation, the distribution system operator is entitled to discontinue the supply of natural gas to the system user and restore the supply of natural gas within five working days after making of the relevant payments.

109. The distribution system operator shall restore the supply of natural gas to the system user within five working days after it has established the following:

109.1. the reasons for the discontinuation of the supply of natural gas referred to in Paragraph 105 and Sub-paragraph 107.1 of this Regulation have been addressed;

109.2. upon the receipt of an appropriate written notification from the natural gas trader, the public trader or the provider of the service of supply of last resort:

109.2.1. the payment has been made for the consumed natural gas, provided distribution system services and other payments specified in laws and regulations;

109.2.2. other payments related to the enforcement of this Regulation and the procedures for the settlement of payments approved by the natural gas trader, the public trader or the provider of the service of supply of last resort have been received (including late payment interest, debt recovery costs, payment for restoration of security deposit, compensation);

109.3. the payment for the expenses of the discontinuing and restoration of the supply of natural gas calculated by the distribution system operator has been received;

109.4. the requirements for further safe use of natural gas have been complied with.

110. The system user who fails to make payments in due time shall be required by the natural gas trader to cover the costs related to the discontinuation and restoration of the supply of natural gas, provided that the relevant information has been received from the distribution system operator. The distribution system operator shall restore the supply of natural gas after covering such costs.

111. The trader and the provider of the service of supply of last resort shall publish the fee for the discontinuation and restoration of the supply of natural gas specified by the distribution system operator on the website, and this fee shall correspond to the actual costs of the discontinuation and restoration of the supply of natural gas.

112. If the supply of natural gas is discontinued in the gasified object in accordance with Paragraph 105 or Sub-paragraph 107.1 of this Regulation, the distribution system operator has, prior to the restoration of the supply of natural gas, in addition to the provisions of Paragraph 109 of this Regulation, the right to request changes in the natural gas supply system of the gasified object, including installation of an additional closing device, commercial meter or telemetry or telemechanic system for automated remote reading of data, or relocation of the commercial meter in a place coordinated with and freely accessible to the distribution system operator.

113. The changes in the natural gas supply system of the gasified object requested by the distribution system operator and referred to in Paragraph 112 of this Regulation shall be made by the system user, the owner of the gasified object or the distribution system operator upon mutual agreement on the cost recovery from financial resources of the system user and the owner of the gasified object. If an agreement cannot be reached, the relevant changes shall be made by the distribution system operator, and the related costs shall be covered from financial resources of the system user or the owner of the gasified object.

114. The distribution system operator shall give notice to the system user of a disruption in the supply of natural gas due to planned disconnection of the natural gas supply system within at least five working days in advance via telephone, by texting, using e-service portal or in writing. The distribution system operator has the right to give notice to the household consumer of the disconnection of the natural gas system of the consumer by placing a notification in the household consumer's mailbox, or where it is impossible, by placing the relevant notification at the immovable property where the gasified object is located, or by giving notice through the owner of the gasified object or an authorised person thereof. If within five working days after the notice has been given the distribution system operator fails to coordinate the time for the discontinuation of the natural gas supply system with the non-household consumer the distribution system operator shall specify this time independently and inform the system user respectively.

115. In order to take emergency measures for rectification of an accident, emergency situation or established damages, the distribution system operator has the right to immediately disconnect the natural gas supply system of the system user and natural gas facilities and appliances at any time of the day. Then the distribution system operator shall, as a matter of urgency, inform the system user about the disruption in the supply of natural gas and reasons for it via telephone, by texting, using e-service portal or in writing. The distribution system operator has the right to give notice to the household consumer of the disconnection of the natural gas system of the consumer by placing a notification in the household consumer's mailbox, or where it is impossible, by placing the relevant notification at the immovable property where the gasified object is located, or by giving notice through the owner of the gasified object or an authorised person thereof.

116. The distribution system operator shall not be responsible for any disruptions in the supply of natural gas, if they are caused by malfunction of safety devices of internal or external system of the supply of natural gas in the gasified object, or act or omission of the system user or third parties.

117. The distribution system operator shall not be responsible for any disruptions in the supply of natural gas or harm, including losses incurred by the system user due to the discontinuation of the supply of natural gas, if the distribution system operator has discontinued the supply of natural gas to the system user in the cases laid down in this Chapter.

118. The system user is entitled to request to suspend the supply of natural gas for a period not longer than one year without terminating the natural gas trade contract. Expenses related to the discontinuation and restoration of the supply of natural gas shall be covered by the system user.

XI. Natural Gas Accounting for the Settlement of Payments for Natural Gas

119. The quantity of the natural gas consumed by the system user shall be recorded in cubic metres (hereinafter - m3). If commercial meters have been equipped with temperature and pressure conversion devices, accounting data shall be determined under standard circumstances.

120. For the purposes of the system user's settlement of payments with the natural gas trader for the consumed natural gas, as well as the received distribution system services, the distribution system operator shall re-calculate the recorded quantity of natural gas as kWh by using the data published on the website of the transmission system operator regarding the average weighted gross calorific value of natural gas under standard circumstances per gas day.

121. The transmission system operator shall ensure that the distribution system operator has access to provisional online data of commercial meters which record the quantity of natural gas supplied to the distribution system and determine parameters of natural gas in order to enable the identification of volume and content of natural gas supplied to each calorific value area of natural gas on a daily basis. The procedures for accessing data and the division of the transmission system in areas shall be determined by the distribution system operator and the transmission system operator in the mutually entered into contract. The distribution system operator shall publish the division of the transmission system in calorific value areas of natural gas on its website.

122. The distribution system operator shall develop the procedures for determining the number of calorific value areas of the distribution system and the gasified objects belonging to each area, and publish this information on its website.

123. Calorific value of the natural gas which has flown into the distribution system shall be determined by using the following formula:

 

H1 × V1 + H2 × V2 +…+ Hn × Vn

where

 
 

V1 + V2 +…+ Vn

 

H - the average daily weighted calorific value of the gas in the distribution system;

H1, H2, .. Hn - the average daily weighted gross calorific value of the natural gas which has flown into the system through the first, second, .. n entry point of the distribution system;

V1, V2, .. Vn - volume of the natural gas which has flown into the system through the first, second, .. n entry point of the distribution system in the relevant day and measured at the relevant exit point of the transmission system and point of connection of the distribution system.

The average calorific value of natural gas in the calorific value area of the distribution system per gas day shall be calculated by determining the average daily weighted calorific value of the natural gas which has flown into the calorific value area through all entry points.

124. The natural gas consumed by the system user in m3 shall be re-calculated by the distribution system operator as kWh by using the following formula:

E = V x Hs where

E - the natural gas supplied in the period for the settlement of payments, kWh;

V - the natural gas supplied in the period for the settlement of payments, m3;

Hs - the average weighted gross calorific value of natural gas under standard circumstances in the period for the settlement of payments (kWh/m3) for the relevant calorific value area.

125. The distribution system operator shall determine the natural gas consumed in the period for the settlement of payments in gasified objects with a place for non-daily accounting as kWh by multiplying the quantity of natural gas recorded in the period as m3 by the average monthly weighted gross calorific value of gas in the calorific value area.

126. The natural gas supplied in the period for the settlement of payments in gasified objects with a place for daily accounting as kWh shall be determined by multiplying the actual quantity of natural gas measured in each day as m3 by the average weighted gross calorific value per gas day in the calorific value area of the distribution system and aggregating quantity of energy per gas day in the calorific value area of the distribution per each gas day. If it has been impossible to determine the actual measured quantity of natural gas per gas day in gasified objects with a place for daily accounting, the quantity of natural gas read by commercial meters as m3 shall be determined by multiplying the average monthly weighted gross calorific value of gas in the calorific value area for the days when the quantity of the consumed natural gas was not measured in the period for the settlement of payments.

127. For the purposes of forecasting, the quantity of natural gas distributed in the distribution system per day shall be calculated by aggregating the following data:

127.1. the consumption received or submitted by the system users from places for daily accounting;

127.2. the consumption calculated by the distribution system operator or submitted by the non-household consumer regarding the quantity of natural gas consumed per gas day in places for non-daily accounting;

127.3. the quantity of the natural gas distributed to household consumers per day in places for non-daily accounting and calculated by the distribution system operator.

128. In order to determine the quantity of the distributed natural gas in the distribution system in the period for the settlement of payments for the purpose of settling the payments for the distribution system services, the distributed quantities of natural gas shall be aggregated by using the following data:

128.1. the consumption data of commercial meters received from the automated remote data reading (telemetry) system which have been acquired from a place for daily accounting (or the consumption data submitted by the system user, if the remote data reading (telemetry) system does not exist or does not function);

128.2. the data received (or calculated) by the distribution system operator regarding the quantity of the distributed natural gas from places for non-daily accounting of the system users (except for household consumers);

128.3. the quantity of the natural gas distributed to household consumers in places for non-daily accounting which has been calculated by the distribution system operator (according to the consumption standard profile given to the specific place for non-daily accounting).

129. The distribution system operator shall produce a forecast for consumption of the following day in places for non-daily accounting of the distribution system, and send it to the natural gas trader for inclusion in the nomination of power of the following day.

130. The distribution system operator shall send the data on the consumption of the previous day from places for daily accounting to each transmission system user with regard to the gasified objects attached to the balancing portfolios of the user.

131. The system user shall settle payments for the consumed natural gas according to the volume of the natural gas recorded by commercial meters as m3 which has been re-calculated as kWh.

132. If the system user fails to communicate readings of commercial meters in accordance with the procedures specified for communicating readings of commercial meters, the distribution system operator shall calculate the quantity of the consumed natural gas according to the consumption standard profile.

133. If a commercial meter is damaged or disconnected for repair, verification or inspection thereof, the quantity of the natural gas consumed per each gas day shall be determined according to the average load of a natural gas facility under similar circumstances over a similar time period, or calculated according to the system user's maximum permitted consumption of natural gas per hour.

134. If the natural gas supply system of the system user is not equipped with a commercial meter or equipped with a commercial meter which does not comply with the metrological requirements for measuring instruments specified in laws and regulations or the requirements specified in the connection contract, the quantity of the natural gas consumed per each gas day shall be calculated according to the consumer's maximum consumption of natural gas per hour.

135. In gasified objects where natural gas is consumed by several renters or owners of a residential building or apartment and consumption of natural gas is recorded by a single natural gas commercial meter, payments for the received natural gas and system services shall be settled by the responsible person who is specified by the owner of this gasified object. Disputes between renters or owners of the gasified object regarding settlement of payments and use of the internal system of the supply of natural gas shall be settled in accordance with the procedures laid down in the Civil Procedure Law.

136. If a commercial meter has not been installed on the proprietary border of the natural gas supply system, losses of natural gas in gas pipes (if any) from the proprietary border of the natural gas supply system to the place of installation of the commercial meter shall be determined as follows:

136.1. if the commercial meter has been installed on the side of the system operator before the proprietary border, the losses of natural gas which have occurred in the section between the place of the installation of the commercial meter and the proprietary border shall be deducted from the quantity of the natural gas supplied to the system user;

136.2. if the commercial meter has been installed on the side of the system user before the proprietary border, the losses of natural gas which have occurred in the section between the place of the installation of the commercial meter and the proprietary border shall be added to the total quantity of the natural gas supplied to the system user.

137. The distribution system operator shall register the commercial meters installed in gasified objects.

138. The commercial meters installed for the natural gas supply system of a household consumer shall be the property of the distribution system operator. The commercial meters installed for the natural gas supply system of the non-household consumer shall be the property of the system user, except for the case where they have been purchased and installed by the distribution system operator.

139. The distribution system operator has the right to install its commercial meter in the gasified object for accounting of the natural gas supplied to the system user, or replace the commercial meter installed in the gasified object for accounting of the natural gas supplied to the system user, as well as equip the commercial meter of the system user with a telemetry or telemechanic system for automated remote reading of data in order to use readings for the settlement of payments for natural gas.

140. If both commercial meters owned by the system user and by the system operator are installed concurrently for the natural gas supply system of the non-household consumer, commercial accounting of natural gas shall be performed according to the readings of the commercial meter owned by the distribution system operator.

141. The owner of meters shall be responsible for the purchase, installation, replacement, repair, maintenance and compliance of the commercial meters with the laws and regulations governing metrological requirements for measuring instruments, and cover the related expenses.

142. A separate commercial meter shall be required for accounting of natural gas consumption, if the system user uses natural gas as fuel for motor vehicles. If it is established that a separate commercial meter has not been installed for accounting of consumption of the natural gas intended for motor vehicles, the distribution system operator may discontinue the supply of natural gas to the system user without a prior notice. A statement shall be drawn up on the established fact in two copies. One copy of the statement shall be kept by the distribution system operator, while the other shall be given to the system user or representative thereof.

143. The distribution system operator shall:

143.1. inspect connection of a commercial meter of the non-household consumer after installation or replacement thereof in the gasified object by sealing places where it has been connected;

143.2. install or replace commercial meters (by sealing places where they have been connected) in the gasified object for a household consumer.

144. If the access is not ensured to the natural gas supply system of a household consumer, as specified in Sub-paragraph 99.1 of this Regulation, the household consumer shall, upon a request of the distribution system operator made via telephone, by texting, using e-service portal or in writing, as soon as possible notify the time when representatives of the distribution system operator may access the natural gas supply system of the household consumer.

145. If a commercial meter cannot be accessed or the household consumer fails to respond to the request of the distribution system operator, the distribution system operator may:

145.1. discontinue the supply of natural gas in the relevant gasified object or further calculate the quantity of the consumed natural gas on the basis of consumption standard profile;

145.2. request the system user to cover expenses related to the visit of the distribution system operator to the relevant gasified object.

146. Changes in the scheme for connection of a commercial meter, replacement, relocation, repair and inspection of the said equipment shall be coordinated by the system user with the distribution system operator. It is forbidden for any person to affect functioning of a commercial meter.

147. The installed commercial meters shall comply with the metrological requirements for measuring instruments specified in laws and regulations, as well as the requirements specified in laws and regulations for the procedures for approving a type of measuring instruments, performing initial verification thereof and monitoring market. The place where the commercial meter is connected shall be sealed with a seal of the distribution system operator.

148. The distribution system operator shall, in accordance with the procedures laid down in laws and regulations, perform early verification of the commercial meter installed in the object of the system user or inspection thereof during operation:

148.1. if the distribution system operator has reasonable suspicions that the commercial meter fails to comply with the specified requirements or has been damaged (activities have been carried out or ancillary devices have been used due to which the reading of natural gas consumption has been reduced or a possibility has been created to use natural gas free of charge). If it is established during the early verification or inspection that the commercial meter has not been valid for use and damage thereof has been caused as a result of the failure of the system user to fulfil the obligations provided for in this Regulation, the expenses related to the early verification or inspection of the commercial meter of natural gas, as well as the expenses incurred by the system operator for the installation of a new commercial meter of natural gas in the gasified object shall be covered by the system user;

148.2. if the household consumer has doubts about the precision of the commercial meter installed in the gasified object. If during the early verification or inspection requested by the household consumer it is established that:

148.2.1. the commercial meter has been valid for use, the expenses related to the early verification or inspection of the commercial meter, as well as the expenses incurred by the distribution system operator for installation of a new commercial meter of natural gas in the gasified object shall be covered by the household consumer;

148.2.2. the commercial meter has not been valid for use, the expenses related to the early verification or inspection of the commercial meter shall be covered by the distribution system operator.

149. The distribution system operator shall, in accordance with the procedures laid down in laws and regulations, perform early verification of a commercial meter in an accredited inspection authority. In case of suspicion of a criminal offence, the distribution system operator shall report a potential criminal offence to a law enforcement institution and hand over the commercial meter for an independent expert-examination. The system user has the right to become acquainted with the statement drawn up by the distribution system operator and opinion of the expert-examination, unless laws and regulations provide otherwise.

[10 August 2021]

149.1 If the reading of the annual consumption of natural gas of the household consumer has changed by more than 30 % in comparison to the previous year, the distribution system operator shall, upon its own initiative or request of the household consumer, verify the accuracy of operation of the commercial meter not marked with the European Community type-approval mark or CE conformity marking at the maximum flow Qmax ≤ 3 m3/h. Costs of the verification of the commercial meter shall be covered by the distribution system operator. If an accuracy error of the reading of the commercial meter exceeds the maximum permitted error specified in laws and regulations, the distribution system operator shall replace the commercial meter installed in the gasified object and cover the costs related to the replacement.

[10 August 2021]

150. In addition to a commercial meter, the system user may install control meters. Control meters shall be the property of the system user, and installation thereof shall be coordinated with the distribution system operator. Control meters shall be installed in the natural gas supply system of the system user behind a commercial meter. Readings of control meters may not form the basis for the settlement of payments for the received natural gas.

151. The non-household consumer shall replace the commercial meter installed in the gasified object within the time period specified by the distribution system operator upon a request of the distribution system operator if:

151.1. metrological characteristics of the commercial meter installed in the gasified object do not correspond to the actual natural gas consumption in the gasified object;

151.2. the commercial meter installed in the gasified object does not comply with the requirements laid down in laws and regulations, including fails to ensure the precision specified in laws and regulations regarding metrological requirements.

152. The system user shall ensure that the commercial meter is freely accessible, not subject to damage and no objects are placed thereon.

153. The distribution system operator shall specify requirements for integration of remotely readable data of commercial meters and conversion devices thereof with the systems of the distribution system operator to ensure change of natural gas traders, and publish them on its website.

XII. Settlement of Payments of the System Users for the Received Natural Gas and System Services

154. The information provided by the distribution system operator on consumption of natural gas which has been specified in accordance with the types referred to in Chapter XI of this Regulation shall form the basis for the settlement of payments between the system user and the natural gas trader for the volume of natural gas consumed in the gasified object.

155. The natural gas trader shall include the fees for distribution system services in the system user's invoice on the basis of the calculations of the consumption of natural gas in the gasified object provided by the distribution system operator which have been made in accordance with the types referred to in Chapter XI of this Regulation and according to the tariffs approved in accordance with the procedures laid down in the Energy Law.

156. Tariff on the system service shall be applied to each gasified object individually. The tariff on the system service determined according to the total consumption of natural gas in several gasified objects shall be applied to several gasified objects of one system user in the settlement of payments, provided the said objects:

156.1. are located at one address and receive system service in one location of the distribution system connection (or several locations of the distribution system connection if it is technically impossible to ensure the system service necessary for the system user in one location of the distribution system connection);

156.2. are interconnected with a unified natural gas supply system of the relevant system user or located at one address.

157. The tariff of the system service which has been determined according to the total consumption of natural gas in the gasified objects of a heating merchant in the administrative territory of a local government shall be applied to the merchant that provides centralised heating services in the administrative territory of a local government, and this is certified by the relevant local government.

158. For the consumed natural gas, received system services and taxes:

158.1. the system user shall settle payments in accordance with the procedures for the settlement of payments specified in the natural gas trade contract;

158.2. the captive consumers shall settle payments in accordance with the procedures for the settlement of payments approved by the public trader;

158.3. the system users who receive natural gas within the scope of the service of supply of last resort shall settle payments in accordance with the procedures for the settlement of payments approved by the provider of the service of supply of last resort.

159. The procedures for the settlement of payments, as well as amendments thereto shall, not later than 30 days prior to the coming into force thereof, be published by the public trader and the provider of the service of supply of last resort in the official gazette Latvijas Vēstnesis and on the website.

160. The natural gas trader is entitled to request that the non-captive consumer, or the person who wishes to enter into a natural gas trade contract or receives natural gas within the scope of the service of supply of last resort provides a security for the duly performance of contractual obligations in proportionate amount if:

160.1. the system user has failed to follow the procedures for the settlement of payments agreed on or approved by the natural gas trader and has delayed payments for the received natural gas or system services;

160.2. the consumer or the person who wishes to enter into a natural gas trade contract or receive natural gas within the scope of the supply of last resort is being liquidated or reorganised and will be liquidated according to a reorganisation plan;

160.3. the legal protection proceedings, extrajudicial legal protection proceedings have been instituted or insolvency proceedings have been declared for the consumer or the person who wishes to enter into a natural gas trade contract or receive natural gas within the scope of the supply of last resort;

160.4. the consumer that consumes more than 25 000 m3 of natural gas per year wishes to enter into a natural gas trade contract or receives natural gas within the scope of the supply of last resort.

[21 January 2020]

161. [10 August 2021]

162. If a captive consumer has delayed payments, the public trader may request that the captive consumer makes a prepayment amounting to average monthly payment, as well as specify shorter periods for settlement of payments, or request to provide a security for duly performance of contractual obligations.

163. If the system user has made a security deposit to the natural gas trader, the public trader, or the transmission system operator as a security for duly performance of contractual obligations in accordance with Paragraph 160 or 162 of this Regulation:

163.1. the system user has an obligation to, upon a request of the trader or the transmission system operator, restore the security deposit in full amount if it has been used to clear outstanding contractual obligations of the consumer;

163.2. the trader or the transmission system operator has an obligation to, within five working days, notify the system user that the system user's outstanding obligations are cleared by using security deposit;

163.3. the public trader has an obligation to repay the deposit to the captive consumer, provided it has followed the procedures for the settlement of payments approved by the public trader continuously for a year;

163.4. the natural gas trader or the transmission system operator has an obligation to repay the deposit to the system user that is not a captive consumer, provided it has followed the procedures for the settlement of payments agreed upon in the natural gas trade contract or specified by the natural gas trader continuously for two years;

163.5. upon expiry of the natural gas trade or the transmission system service contract or in the case of the termination thereof, the trader or the transmission system operator has an obligation to, within five working days, repay the system user the amount of the security deposit which has not been used to clear outstanding contractual obligations of the system user.

[10 August 2021]

164. If the system user detects a mistake in the payment documents of the last period for the settlement of payments, the system user shall inform the sender of the payment document in writing. The natural gas trader or the transmission system operator shall, within 10 working days upon the receipt of a written submission from the system user, verify the payment documents, communicate verification results to the consumer and make changes in the payment documents or the period for the settlement of payment, if necessary. A repeated submission for the relevant mistake in the payment document shall not release the system user from the obligation to make a payment within the specified time period.

165. If a reading of a commercial meter has been read incorrectly, the system user shall notify the distribution system operator of this in writing. The distribution system operator shall, within five working days after the receipt of the written submission from the system user, verify readings of the commercial meters, and make a re-calculation of the supplied natural gas and the fee for the received distribution system services, if necessary. The verification results shall be communicated to the system user and the natural gas trader, the public trader or the provider of the service of supply of last resort that makes changes in the payment documents or the payment period, if necessary.

166. If the natural gas trader or the distribution system operator detects a mistake in the payment document, the natural gas trader or the distribution system operator shall make a re-calculation for the last period for the settlement of payments.

167. If the distribution system operator detects a mistake in payment accounting or calculations regarding the supplied natural gas and the distribution system services, the distribution system operator shall make a re-calculation for the last period for the settlement of payments or the time period, which does not exceed a year from the day of the relevant detection, and indicate the re-calculation in the period for the settlement of payments when the re-calculation is made or mistake is corrected.

168. If the distribution system operator establishes that the flow rate of natural gas through commercial meter in the gasified object is lower than the lowest permissible threshold of the commercial meter, the distribution system operator has the right to make a re-calculation of the received natural gas for the time period when the flow rate of natural gas is lower than the lowest permissible threshold of the commercial meter of the system user, assuming that the amount of flow rate is equal to the lowest threshold of the specific meter, unless the natural gas trade contract provides otherwise.

XII.1 Procedures for Applying the Reduction of Payments for the Consumed Natural Gas and for Paying the Compensation

[6 September 2022]

168.1 The compensation shall be paid to the natural gas trader for the applied reduction of payments within the time period and in the amount specified in the law or regulation regarding the application of the reduction of payments to specific system users.

[6 September 2022]

168.2 The natural gas trader shall ensure that, irrespective of the type of settlement of payments selected by the system user, the system user obtains the reduction of payments specified in the law or regulation regarding the application of the reduction of payments in each period for the settlement of payments. The natural gas trader shall ensure that the system user obtains the reduction of payments for all natural gas consumed in the period for application of the reduction of payments the volume of which is determined in accordance with the information provided by the system operator on the natural gas consumed by the system user in the gasified object.

[6 September 2022]

168.3 Unless otherwise provided for in the law or regulation regarding the application of the reduction of payments, the natural gas trader shall not apply the reduction of payments for the consumed natural gas:

168.3 1. in the cases referred to in Paragraph 87 of this Regulation;

168.3 2. if the system operator establishes that the system user has provided false information about readings of the commercial meter in respect of the period for application of the reduction of payments;

168.3 3. if the system user has failed to comply with the requirement referred to in Sub-paragraph 97.10 of this Regulation;

168.3 4. in other cases specified in laws and regulations.

[6 September 2022]

168.4 Where the reduction of payments is applied, the natural gas trader shall indicate the following information in the invoice issued to the system user:

168.4 1. the time period for which the reduction of payments is applied;

168.4 2. the amount for which the reduction of payments is determined and the source of financing.

[6 September 2022]

168.5 The system user whose gasified object is an apartment residential house shall be obliged to apply the reduction of payments to the settlement of payments with households of the apartment residential house for the consumed natural gas by applying to the natural gas trader for the reduction of payments not later than by the last day of the month from which the reduction of payments is to be applied and by submitting a certification of households of the apartment residential house and consumption thereof.

[6 September 2022]

168.6 The compensation shall be paid to the natural gas trader in accordance with the following procedures:

168.6 1. the natural gas trader shall, by the twentieth day of the current calendar month, calculate, prepare, and submit to the State Construction Control Bureau a calculation of the compensation for the previous calendar month and a corresponding invoice by applying value added tax;

168.6 2. if the State Construction Control Bureau establishes any errors in the calculation referred to in Sub-paragraph 168.6 1 of this Regulation, it shall request the natural gas trader to specify the calculation and re-submit the calculation and a corresponding invoice within five working days;

168.6 3. the State Construction Control Bureau shall, by the end of the current calendar month, pay the compensation (including value added tax) in accordance with the invoice of the natural gas trader referred to in Sub-paragraph 168.6 1 of this Regulation;

168.6 4. upon expiry of the period for the application of the reduction of payments, the natural gas trader and the State Construction Control Bureau shall, by the end of the calendar year, perform the final settlement of payments if there is a need to adjust the compensation payments.

[6 September 2022]

168.7 The State Construction Control Bureau has the right to request and the natural gas trader is obliged to provide all the necessary information related to the application of the reduction of payments.

[6 September 2022]

168.8 If the State Construction Control Bureau establishes any non-compliance in the actions of the natural gas trader with regard to the application of the reduction of payments, it shall:

168.8 1. set a deadline by which the natural gas trader must remedy the established non-compliance or submit additional information;

168.8 2. be entitled to defer payment of the invoice of the natural gas trader referred to in Sub-paragraph 168.6 1 of this Regulation until the established non-compliance is fully remedied.

[6 September 2022]

168.9 If the State Construction Control Bureau establishes that the compensation has been requested and paid unjustifiably, it shall take the decision on the repayment of the compensation paid unjustifiably.

[6 September 2022]

XIII. Settlement of Payments of the Traders for the Distribution System Service

169. The natural gas trader shall settle payments for the natural gas distribution system service according to the tariffs approved in accordance with the procedures laid down in the Energy Law under the distribution system service contract.

170. The information provided by the distribution system operator on the volume of the consumed natural gas, which has been calculated in accordance with Chapter XI of this Regulation, shall form the basis for the settlement of payments between the natural gas trader and the distribution system operator.

171. The natural gas trader shall pay the distribution system operator the late payment interest in the amount of up to 0.15 % from the sum not paid in time for each day of late payment in accordance with the procedures laid down in the Civil Law.

172. The distribution system operator is entitled to request that the natural gas trader who wishes to enter into a contract for the receipt of the distribution system services or has a valid distribution system service contract with the distribution system operator provides a security for duly performance of contractual obligations in proportionate amount if:

172.1. the natural gas trader has failed to comply with the procedures for the settlement of payments specified by the distribution system operator and delayed payments for the provided distribution system services;

172.2. the natural gas trader is being liquidated or reorganised and will be liquidated according to a reorganisation plan;

172.3. the legal protection proceedings, extrajudicial legal protection proceedings have been instituted or insolvency proceedings have been declared for the natural gas trader.

173. The system operator shall publish the procedures for applying security for duly performance of contractual obligations on its website.

174. If the natural gas trader has made a security deposit to the distribution system operator as a security for duly performance of contractual obligations in accordance with Paragraph 172 of this Regulation:

174.1. the natural gas trader has an obligation to, upon a request of the distribution system operator, restore the security deposit in full amount if the distribution system operator has used it to clear outstanding contractual obligations of the natural gas trader;

174.2. the distribution system operator has an obligation to, within five working days, notify the natural gas trader that the trader's outstanding obligations are cleared by using security deposit;

174.3. the distribution system operator has an obligation to repay the deposit to the natural gas trader, provided it has followed the procedures for the settlement of payments specified by the distribution system operator continuously for two years;

174.4. upon expiry of the system service contract on in the case of termination thereof, the distribution system operator has an obligation to, within five working days, repay the natural gas trader the amount of the security deposit which has not been used to clear outstanding contractual obligations of the natural gas trader.

175. If the natural gas trader detects a mistake in the payment documents, the natural gas trader shall inform the distribution system operator in writing. The distribution system operator shall, within 10 working days upon the receipt of a written submission from the natural gas trader, verify the payment documents, communicate verification results to the natural gas trader and make changes in the payment documents or the period for the settlement of payment, if necessary. A repeated submission for the relevant mistake in the payment document shall not release the natural gas trader from the obligation to make the payment within the specified time period.

176. If the distribution system operator detects a mistake in payment accounting or calculations of the supplied natural gas and the distribution system services, the distribution system operator shall make a re-calculation for the last period for the settlement of payments or the time period, which does not exceed a year from the day of the relevant detection, and indicate the re-calculation in the period for the settlement of payments when the re-calculation is made or mistake is corrected.

XIV. Closing Provisions

177. Until the moment the household consumer enters into a natural gas trade contract with the trader or the public trader, natural gas shall be traded to the household consumer by the public trader for the price specified in accordance with the procedures laid down in the Energy Law.

178. Until the moment of entering into a natural gas trade contract, but not later than until 1 July 2017, the natural gas shall be traded to a non-household consumer by the natural gas trader with which the non-household consumer had a valid natural gas supply contract at 2 April 2017 according to the final differentiated tariff for trade in natural gas which was applied to the non-household consumer on 1 April 2017.

179. If the price of natural gas is not approved for a captive consumer in accordance with the procedures laid down in the Energy Law by 3 April 2017, the public trader shall, until approval of the said price, trade natural gas to the captive consumer according to the final differentiated tariff for trade in natural gas which was applied to the household consumer on 1 April 2017. The captive consumer shall additionally pay to the public trader the fixed part specified in the tariff for the distribution system service for the period for the settlement of payments.

[21 January 2020]

180. The service of supply of last resort shall, not later than three months after the separation of the distribution system operator in an independent company, be provided by the natural gas trader that holds a valid licence for trade in natural gas at 10 February 2017 for the average price of natural gas for captive consumers specified in accordance with the procedures laid down in the Energy Law by multiplying it by coefficient 1.2.

181. Paragraphs 45, 47 and 48 of this Regulation shall come into force on 1 January 2019.

181.1 The public trader shall, by 31 March 2023, change the type of settlement of payments applied to the captive consumers from the balanced payment to the invoice for the period for the settlement of payments, except for the case where the captive consumer does not agree to this. The public trader shall, not later than 30 days before the change of the type of settlement of payments, inform the captive consumers of the change of the type of settlement of payments and the possibility to refuse it, provided that the captive consumer has fulfilled all contractual liabilities which have fallen due.

[6 September 2022]

181.2 In changing the type of settlement of payments referred to in Paragraph 181.1 of this Regulation, the public trader shall not, until 31 December 2022, apply the charge to sending an invoice by post to the captive consumers whose average monthly consumption of natural gas over a 12-month period in the gasified object exceeds 42 kWh per month (4 m3 per month).

[6 September 2022]

182. The Regulation shall come into force on 3 April 2017.

Informative Reference to European Union Directive

[10 August 2021]

The Regulation contains legal norms arising from:

1) Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC;

2) Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC.

Prime Minister Māris Kučinskis

Deputy Prime Minister,
Minister for Economics Arvils Ašeradens

 

Annex 1
Cabinet Regulation No. 78
7 February 2017

[10 August 2021]

Gas Quality Characteristics in the Natural Gas Distribution System

No.

Characteristics

Unit of measurement

Value

1.

Wobbe index - WS,b

under reference temperature conditions (combustion/measurement) 25/20° C

MJ/m3

47.02-51.98

kcal/m3

11231-12415

kWh/m3

13.06-14.44

2.

Gross calorific value (GCV)

20° C and 101.325 kPa under reference temperature conditions (combustion/measurement) 25/20° C

MJ/m3

≥ 34.87

kcal/m3

≥ 8329

kWh/m3

≥ 9.69

3.

Net calorific value (NCV)

20° C and 101.325 kPa under reference temperature conditions (combustion/measurement) 25/20° C

MJ/m3

≥ 31.82

kcal/m3

≥ 7600

kWh/m3

≥ 8.83

4.

Relative density - d  

0.55-0.70

5.

Sulphur in total - S (without odour component)

g/m3

≤ 0.03

6.

Hydrogen sulphide + carbonyl sulphide H2S + COS

g/m3

≤ 0.007

7.

Mercaptans - RHS (without odour component)

g/m3

≤ 0.016

8.

Methane - CH4

mol %

≥ 90

9.

Nitrogen - N2

mol %

≤ 3

10.

Oxygen - O2

mol %

≤ 0.02*

≤ 1.0**

11.

Carbon dioxide - CO2

mol %

≤ 2.5*

≤ 4.0**

12.

Methane number  

≥ 65

13.

Mechanical impurities

g/m3

≤ 0.001

14.

Hydrocarbon dew point - HC DP, at 1-70 bar

°C

≤ -2

15.

Water dew point - H2O DP, at 40 bar

°C

≤ -10

16.

Hydrogen - H2

mol %

≤ 0.1

17.

Odour component

mg/m3

≥ 3

points

≥ 3

Notes.
1. * Quality characteristics of the input, transportation and replacement gas in the natural gas transmission system.
2. ** Quality characteristics of the input, transportation and replacement gas in the natural gas distribution system, provided the distribution system is not connected with underground gas storage facilities or related to gas supply system of other countries.

Deputy Prime Minister,
Minister for Economics Arvils Ašeradens

 

Annex 2
Cabinet Regulation No. 78
7 February 2017

Differentiated Monthly and Annual Consumption Rates of Natural Gas for Household Consumers

[10 August 2021]

No.

Month

Consumption rate of natural gas (m3) for a household consumer in the gasified objects containing a gas cooker and centralised hot water supply

Consumption rate of natural gas (m3) for a household consumer in the gasified objects containing a gas cooker but no water heaters and centralised hot water supply

Consumption rate of natural gas (kWh) for a household consumer in the gasified objects containing a gas cooker and centralised hot water supply (the amount of natural gas shall be converted to energy units by using the actual gross calorific value of 10.538 kWh/m³)

Consumption rate of natural gas (kWh) for a household consumer in the gasified objects containing a gas cooker but no water heaters and centralised hot water supply (the amount of natural gas shall be converted to energy units by using the actual gross calorific value of 10.538 kWh/m³)

1.

January

5.41

8.97

57

95

2.

February

5.15

8.61

54

91

3.

March

5.36

8.95

56

94

4.

April

4.79

8.01

50

84

5.

May

4.37

7.26

46

77

6.

June

3.40

5.63

36

59

7.

July

2.52

4.25

27

45

8.

August

2.65

4.38

28

46

9.

September

3.61

5.97

38

63

10.

October

4.60

7.70

48

81

11.

November

5.08

8.51

54

90

12.

December

5.45

9.08

57

96

Annual total

52.39

87.33

552

920



Translation © 2023 Valsts valodas centrs (State Language Centre)

 
Document information
Title: Dabasgāzes tirdzniecības un lietošanas noteikumi Status:
In force
in force
Issuer: Cabinet of Ministers Type: regulation Document number: 78Adoption: 07.02.2017.Entry into force: 03.04.2017.Publication: Latvijas Vēstnesis, 44, 28.02.2017. OP number: 2017/44.2
Language:
LVEN
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