OREANDA-NEWS. On 31 March 2009 was announced, that in Brussels the meeting of the CEOs of the European electricity sector organized by EURELECTRIC, the union of the largest European electricity companies, took place. During the meeting, the members of the organization — approximately 70 CEOs of the largest European power industry companies, including Kаrlis Mikelsons, the CEO of Latvenergo AS, signed the Declaration on Climate Change, Electricity Markets and Supply Security.

This Declaration has to be considered a future commitment to pay more attention to a proper and fair functioning of the electricity market, safety and reliability of power supply, as well as care for the environment, decreasing the amount of hazardous emissions that create the greenhouse effect.

The Declaration was signed by the CEOs of EURELECTRIC partner organizations, including the representatives of the largest Baltic electricity producers, i.e., Latvenergo AS, Eesti Energia AS and Lietuvos Energija.

The main emphasis of the Declaration is set on the provision of an integrated electricity market and operation in a market-based environment.

K. Mikelsons, the CEO of Latvenergo AS: “During this meeting, several crucial questions were addressed to the policymakers of the European Union, bankers and general public. First, the calculations made by the representatives of our industry state that till 2030 the demand for electricity in Europe will increase by 30%, and it will require 1.8 trillion EUR investments in new energy generation facilities.

Second, in the meeting of the union, there was one dominant opinion — the market undoubtedly is best measure to determine fair electricity price, and it has to be the main criterion for any electricity production type, as the market lets us to determine the real price of any goods or services. It is an important issue to understand when unpopular decisions have to be made on increasing prices for those who have to operate in a controlled environment.”

It should be pointed out that in Latvia, formally and practically, all requirements regarding the open market and fair competition policy are met. Since July 1, 2007 all electricity users in Latvia, including households, can choose electricity sellers suitable for them.

Currently approximately twenty legal entities have the rights to sell the electricity in the Republic of Latvia. This lets Lithuanian and Estonian electricity producers enter the Latvian market, while Latvenergo AS actually does not have a similar opportunity in these countries. The electricity market has not been opened neither in Estonia nor in Lithuania. In Estonia, the market is fully closed, but in Lithuania it does not operate. Thus Latvian companies do not have an opportunity to work in the market of neighboring countries that at large does not stipulate equal market development in the region.

Latvenergo AS is a full member of EURELECTRIC since year 2000.