"Latvenergo" to undergo reorganization
The Cabinet of Ministers today will review economic justification for reorganization of the state-owned joint-stock power company "Latvenergo" and decide on legal status for the operator of the transmission system.
The Cabinet of Ministers today will review economic justification for reorganization of the state-owned joint-stock power company "Latvenergo" and decide on legal status for the operator of the transmission system.
It is planned that a limited liability company or a joint-stock owned by "Latvenergo" will be established which will carry out the functions of the power transmission operator and will lease power grid lines from "Latvenergo."
The new operator is planned to be formed on December 31, 2001.
According to information from the Ministry of Economy, net value of additional profit accumulated from the reorganization (planned up to 2010) totals about LVL 1.4 million at this time following the merger of thermoelectric and hydroelectric stations and LVL 2.6 million - form establishing of a united power distribution system.
The ministry backed the decision made by "Latvenergo" board and council not to propose any changes in the company's reorganization plan. The deadline for proposals on usefulness of introduction of certain legal entities is set for July 1 but distribution and retail for October 1.
As reported, the plan for reorganization of "Latvenergo", drawn up by the Ministry of Economy, is aimed at making the state joint-stock a competitive company and preparing it for the free trade market, according to amendments to the Energy Law and the primary development tendencies in the European power market.
Jānis Silakalns LETA
It is planned that a limited liability company or a joint-stock owned by "Latvenergo" will be established which will carry out the functions of the power transmission operator and will lease power grid lines from "Latvenergo."
The new operator is planned to be formed on December 31, 2001.
According to information from the Ministry of Economy, net value of additional profit accumulated from the reorganization (planned up to 2010) totals about LVL 1.4 million at this time following the merger of thermoelectric and hydroelectric stations and LVL 2.6 million - form establishing of a united power distribution system.
The ministry backed the decision made by "Latvenergo" board and council not to propose any changes in the company's reorganization plan. The deadline for proposals on usefulness of introduction of certain legal entities is set for July 1 but distribution and retail for October 1.
As reported, the plan for reorganization of "Latvenergo", drawn up by the Ministry of Economy, is aimed at making the state joint-stock a competitive company and preparing it for the free trade market, according to amendments to the Energy Law and the primary development tendencies in the European power market.
Jānis Silakalns LETA
