EC agrees on the possible impact of Gazprom on Conexus – in Latvia – News

The SPRK has received the EC opinion on a draft decision concerning the certification of Conexus

The EC agrees with the conclusion that Gazprom's involvement in Latvian gas and Conexus could have an effect on Conexus operations.

The regulator will have to make a final decision on Conexus' compliance with the certification requirements within two months

As PUC recalls, he indicated in his draft decision that there was a risk of conflict between the two. Interests between the two financial actors, Marguerite. the risk that the controller of natural gas trader "Latvijas gāze", Gazprom, also a shareholder of Conexus, has the opportunity to directly or indirectly control Conexus. At the same time, Gazprom continued to play an important role in the Latvian natural gas market and is still a shareholder of Latvijas Gáze. As a result, Gazprom's stake in both companies could have an impact on Conexus' business.

Similarly, PUC has previously stated that Marguerite Gas I, a shareholder of Conexus, through its parent company, Marguerite Holdings, is badociated with the regulator, the participation of these shareholders in both companies. provision of energy creates a conflict of interest, which led the PUC Committee to conclude that Conexus only partially fulfilled the certification requirements imposed by the economic operator

. Gazprom may retain its membership in the transmission system operators if this participation does not give rise to any "right" [2] ie a pbadive participant without a majority shareholder without the right to vote or to appoint members of the directory.

Similarly, the EC shares the view of the PUC that the constitutional restrictions of Conexus with respect to shareholders the right not to exercise the right to vote or to appoint members of the board Is not legally valid, they must be considered voluntary. On the other hand, the voluntary commitment is insufficient to meet the requirements of the Gas Directive. Therefore, the EC agrees with the regulator's conclusion that Gazprom's participation in Conexus can not be considered compatible with the requirements of the Gas Directive.

The EC also supported the opinion of PUC. participation in the two energy supply companies – Conexus and the natural gas supplier "Latvijas gāze" operating in a geographical area. As a result, Marguerite's participation is inconsistent with the requirements of Article 9 of the Gas Directive.

As the PUC points out, the regulator has a duty to take fully into account the EC's opinion in the final Conexus certification decision. The regulator will have to make a final decision on Conexus' compliance with the certification requirements within two months of receipt of the EC's notice, ie. at the end of September. In order to meet the certification requirements, Conexus is obliged to eliminate the conflict of interest caused by the simultaneous participation of Marguerite Gas I and Marguerite Gas II in both Conexus and Latvijas Gāze, and of S & C. ensure that Gazprom is not able to implement direct or indirect control over Conexus

As it has been reported, SPRK, in its badessment of Conexus' compliance with the certification requirements, concluded in May that the company has only partially fulfilled them.The SPRK drafted a draft harmonization decision. [ad_2]
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