Made amendments to Articles of Association and composition of the Board of Latvijas elektriskie tīkli AS

Today, 13 January, the meeting of the shareholders of Latvijas elektriskie tīkli AS (LET) was held. The meeting adopted amendments to the Articles of Association and composition of the Board of Latvijas elektriskie tīkli AS. The current Chairman of the Board Guntis Stafeckis will continue to work in the management of LET and be the only member of the Board from 1 February, following the redistribution of LET functions and their partial transfer under the supervision of Augstsprieguma tīkls AS (AST). The former members of the Board Jānis Kirkovalds and Vita Andersone will continue their work as part of the management team of LET.


Riga, 2015-01-13 14:14 CET (GLOBE NEWSWIRE) -- In line with the legislation, from 1 January 2015 Augstsprieguma tīkls AS takes over the majority of functions implemented until now by Latvijas elektriskie tīkli AS. This means that from the beginning of the year 430 skilled professionals in the field will continue their work as employees of Augstsprieguma tīkls AS. Their responsibilities will include ensuring the operation and routine maintenance of the transmission network (330 kV and 110 kV transmission lines and substations/distribution points) managed so far by Latvijas elektriskie tīkli AS, as well as construction of new networks and reconstruction or renewal of the existing networks.

In turn, Latvijas elektriskie tīkli AS will implement the function of the transmission system asset management and provide funding for the network development.

Guntis Stafeckis, Chairman of the Board at Latvijas elektriskie tīkli AS: “Starting from 1 January, the company’s operation is related most directly to the supervision of the value and condition of the transmission assets, while attracting funds required for renewing the assets. I am confident that together with our colleagues from AST we will be able to secure a reliable electricity supply to customers and foster the development of the high-voltage network by building new lines and refurbishing the substations”.

In accordance with Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and the Electricity Market Law, Latvijas elektriskie tīkli AS transfers a number of functions to Augstsprieguma tīkls AS.

These conditions require that starting from no later than 30 January 2015 Augstsprieguma tīkls AS, which is not engaged in the production, trade and distribution of electricity, is to perform the servicing and maintenance of the transmission system assets, as well as development of the transmission system, construction of new networks, and refurbishment and reconstruction of existing networks.

The activities of LET in the subsequent periods are set in three key areas:

  • asset management (lease, entry of new assets, evaluation of asset value growth and analysis of return on assets);
  • fund raising to maintain the value of assets and create new assets, attraction of funding for projects co-financed by the European Union (EU) and control over the spending. Entry of the value of the constructed connection assets into the transmission asset base;
  • technical supervision of assets, monitoring of project implementation (acceptance of the activities performed by the lessee and harmonization of the planned investment) and monitoring of projects co-financed by the EU.

The performance of these tasks does not require a large number of employees. Since 1 January 2015, Augstsprieguma tīkls AS has taken over most of the functions of Latvijas elektriskie tīkli AS and the existing employees. Therefore, the number of the Board members of LET has been reduced to one member of the Board.

Augstsprieguma tīkls AS is a Latvian independent transmission system operator, which ensures the reliable operation of the transmission network and electricity supply in the Latvian electricity system, provides the transmission service based on published tariffs for transmission service, secures free third-party access to the transmission network, conducts the operational management of the transmission system for and provides reliable and stable transmission of electricity. Following the legislative changes, AST is an operationally competitive, professional and responsible provider of the effective functioning of the Latvian electricity transmission system, while securing its maintenance and development. The company maintains and develops high-quality, reliable and environmentally friendly installations, equipment and technology to ensure the sustainable development of the company and contribute to a balanced and sustainable economic development. The shareholder of Augstsprieguma tīkls AS is the Ministry of Finance of the Republic of Latvia.

Latvijas elektriskie tīkli AS is a subsidiary of Latvenergo AS that provides supervision and management of the Latvian transmission network assets, as well as funding for maintenance of the existing networks and construction of the new ones. The shareholder of Latvijas elektriskie tīkli AS is Latvenergo AS. In turn, all shares of Latvenergo AS are owned by the state and are held by the Ministry of Economics of the Republic of Latvia whose interests are represented at the shareholders’ by the State Secretary of the Ministry of Economics.

Additional information:
Jānis Irbe
Group Treasurer
Phone: +371 67 728 239
E-mail:
investor.relations@latvenergo.lv

www.latvenergo.lv

About Latvenergo

Latvenergo Group is a pan-Baltic energy company, engaging in electricity and thermal energy generation and supply, electricity distribution services and management of transmission system assets. Latvenergo Group holds one-third of the entire Baltic electricity market, thus ensuring its leadership in the Baltic electricity supply. Latvenergo AS has been acknowledged as the most valuable company in Latvia for several years in a row. International credit rating agency Moody’s has assigned Latvenergo AS an investment-grade credit rating of Baa3/stable.

Latvenergo Group includes the parent company Latvenergo AS (electricity and thermal energy generation and supply) and its subsidiaries Latvijas elektriskie tīkli AS (management of transmission system assets), Sadales tīkls AS (electricity distribution), Elektrum Eesti OÜ (electricity  supply in Estonia), Elektrum Lietuva UAB (electricity supply in Lithuania), Enerģijas publiskais tirgotājs AS (administration of electricity mandatory procurement process) and Liepājas enerģija SIA (electricity and thermal energy generation and supply), as well as Elektrum Latvija SIA (electricity supply), a subsidiary of Elektrum Eesti OÜ.