Natural Gas Tariff-Maiking Principles in Latvia and It’s Affecting Factors
2010
Vladimirs Didenko, Anatolijs Magidenko

The article presents the main principles of natural gas tariff-making in Latvian Republic and describes affecting factors on this process as well. Tariffs development for natural gas in Latvia has a number of features. The statement and regulation of gas tariffs is engaged by regulator - Public Utilities Commission (PUC). Regulation of gas tariffs is connected with a monopoly position of joint-stock company "Latvijas Gāze" in natural gas industry. The majority of factors affecting gas tariffs have link with a procurement price of gas and they are not under control to JSC "Latvijas Gāze". Cost of natural gas in the final tariff of realization is 80 % average, and the other 20% are expenses of adjustable services. Expenses of adjustable services are affirm by regulator for the period of action of tariffs and do not change, therefore factors affecting these 20 % expenses are not so essential. The constant control over influencing factors helps to lower risks of possible losses for the company.


Keywords
Natural gas purchase price, sale end-user tariffs, regulated service tariffs, regulated asset basis, influencing factors.

Didenko, V., Magidenko, A. Natural Gas Tariff-Maiking Principles in Latvia and It’s Affecting Factors. Economic Research in Business. Vol.8, 2010, pp.9-15. ISSN 1691-0737.

Publication language
Latvian (lv)
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