The authors analyze the applicability of the Nord Pool Spot (NPS) prices of Finland to the electricity market of Latvia, and, consequently, the appropriateness of using the electricity forwards from NPS for price estimates in Latvia. They propose a concept of electricity price regulation for public supply in Latvia based on the price forecasts of NPS forward contracts taking into account the cross-border congestions. Additionally, good correlation has been obtained between the marginal costs of a coal-fired power plant and the electricity forwards for the Finland’s NPS area.