The Council of the Public Utilities Commission (PUC) of Latvia on 29th October 2020 has expressed support for the Baltic transmission system operator - AST, Elering AS and Litgrid AB submitted by the electricity transmission system operator AS Augstsprieguma tīkls (AST). the jointly developed Methodology for Calculation and Allocation of Transmission Capacity with Russia (Terms, Conditions and Methodology on Cross-Zonal Capacity Calculation, Provision and Allocation with Russia) (hereinafter - the Methodology) without objecting to the draft Methodology in its current version and encouraged the implementation of the Methodology from the moment the Belarusian nuclear power plant becomes operational.

PUC has reviewed the Methodology and has established that the solutions included in the Methodology for calculating capacity with Russia are justified and will ensure that electricity trade with Russia will not be interrupted. PUC points out that the Baltic TSOs, when developing the Methodology, have observed the capacity calculation methodology of the Baltic capacity calculation region that the calculation and allocation of capacity with third countries cannot affect (reduce) capacity at the internal borders of the Baltic capacity calculation region.

The Methodology includes the decision of the Cabinet of Ministers of 25th August 2020 and the instructions of the Ministry of Economics in accordance with the agreement reached at the meeting of senior energy policy officials of the Baltic Council of Ministers on 24th September 2020, as well as Article 13.1 of the Electricity Market Law. The main changes in the methodology compared to the current methodology for calculating and allocating transmission capacity with third countries are as follows:

• Request for proof of origin of electricity;
• Electricity will be allocated through LRI and LRE bidding areas;
• Reduction of electricity trade capacity due to the ban on the use of BY-LT cross-border interconnection for electricity trade;
• In electricity supplies, volumes are modeled to and from the Latvian power system;
• Optimization of the Estonian power system balance;
• The maximum electricity allocation capacity is linked to the Estonian-Russian cross-border interconnection.

Documents: Terms, Conditions and Methodology on Cross-Zonal Capacity Calculation, Provision and Allocation with Russia