Changes in audited annual report compared to unaudited report.
Following auditor’s suggestions and guidance in IAS 16.24 and IAS 27.13, changes were made in Investment in subsidiary and Reserves and previous years retained earnings.
2017 was a year of changes and transition for the JSC “Latvijas Gāze” (further – the Company):
- At the beginning of the year in line with the amendments to the Energy Law adopted by the Saeima of the Republic of Latvia on 11 February 2016 the Company’s natural gas storage and transmission business was spun-off into the newly founded and fully independent company the JSC “Conexus Baltic Grid”;
- On 3 April 2017 the Latvian natural gas market was opened to competition bringing to an end the former monopoly position of the JSC “Latvijas Gāze”;
- On 1 December 2017, the Company spun-off its distribution business into a 100 % subsidiary with the name JSC “Gaso”. The JSC “Gaso” is a legally, structurally and operationally separate company with an own and independent Board of Management and Council. Together the JSC “Latvijas Gāze” and the JSC “Gaso” form Latvijas Gāze group.
Since 3 April 2017 several new players have entered the Latvian natural gas market actively competing with the former incumbent the JSC “Latvijas Gāze” for market share. At the end of 2017 in total 37 companies were officially registered as gas trading companies in Latvia.
As a consequence of market opening the JSC “Latvijas Gāze” not only delivers natural gas directly to its customers but also sells natural gas at the Virtual Trading Point and at the Inčukalns Underground Gas Storage Facility. At the same time the Company actively prepared entering into the neighbouring natural gas markets in Lithuania and Estonia. Subsequently, on 17 August 2017 the JSC “Latvijas Gāze” received a license for natural gas trading in Lithuania and on 23 August 2017 the Company was granted a natural gas trading license for Estonia.
For the future Latvijas Gāze group remains fully committed to retaining its position as the most reliable natural gas supplier for market customers and households alike and to expand its sales activities in the Baltic region.
Information prepared by:
Madara Pundure
Head of Finance and accounting division
+ 371 67 369 281
madara.pundure@lg.lv
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