Supervisory Board

During the intervals between shareholder meetings, the interests of the shareholder of AS ‘Augstsprieguma tīkls’ (AST) are represented by the AST Supervisory Board, which uses carefully selected and effective management tools to supervise the activities of the AST management board and ensure that the value of the company increases.

The number of AST Supervisory Board members is determined by the Cabinet of Ministers, in accordance with the indicators showing the size of AST. The term of office of AST Supervisory Board members is determined by applicable binding laws and regulations.

The Supervisory Board participates in the strategic development of AST and supervises its finance and risk management system. The key principles for the operation of the Supervisory Board, and its main tasks, duties, and responsibilities, are governed by laws, the AST articles of association, and the bylaws of the Supervisory Board.

The AST Supervisory Board fulfils its duties and adopts decisions in a fair and objective manner, in compliance with laws and regulations, and the actions of the Supervisory Board comply with the highest standards of professional practice and ethics.

The salaries of the chairman and members of the AST Supervisory Board are determined in accordance with the Law on Governance of Capital Shares of a Public Person and Capital Companies and the Cabinet Regulations issued on its basis, including recommendations from the guidelines issued by the Cross-Sectoral Coordination Centre. The applicable laws and regulations set up a uniform framework for determining the remuneration of the Supervisory Board chairman and Supervisory Board members.

Authorisation agreements are concluded with the AST Supervisory Board chairman and Supervisory Board members, and they are not subject to the provisions of the AST collective bargaining agreement.

The AST Supervisory Board chairman and Supervisory Board members are not paid any bonuses, and they do not receive any retirement benefits or other compensations of any kind.

To further enhance the efficiency of Latvia’s transmission system operator JSC “Augstsprieguma tīkls” (AST), its shareholder – the Ministry of Climate and Energy – 27.12.2024 has decided to further reduce the number of supervisory board members. While AST’s statutes permit a five-member supervisory board, the current four-member structure has proven effective in overseeing the management board’s activities. Starting in 2025, the supervisory board will be reduced to three members.

In addition to reducing the number of supervisory board members, and in line with good governance principles, the shareholder has decided to hold an open competition for the vacant supervisory board positions. During the competition process, Līga Rozentāle will temporarily serve on the supervisory board. To ensure the continuity of energy sector expertise and experience, as well as the effective strategic oversight of AST, Olga Bogdanova has been re-elected for a new term of office in accordance with applicable law*.

Once the amendments to the law “On the Prevention of Conflicts of Interest in Activities of Public Officials” come into force, the requirement to comply with these amendments until August 31, 2025 will be introduced, ensuring effective corporate governance of the company.

* The law “On the Prevention of Conflicts of Interest in Activities of Public Officials” (Par interešu konflikta novēršanu valsts amatpersonu darbībā").