PUK: The measures taken by Gasso last year to ensure independence were sufficient

On March 31, 2023, KYB received and evaluated “Gasso”‘s application for compliance with the operator’s independence requirements and supporting documents.

The Energy Law regulates that the persons responsible for the management of the natural gas distribution system operator cannot be involved in the structures of a vertically integrated natural gas merchant that is directly or indirectly responsible for the production, transmission, storage, supply of liquefied gas. natural gas services and trading.

According to the Energy Law, the natural gas distribution system operator must take appropriate measures to ensure that the persons responsible for the management of the natural gas distribution system operator can act independently.

According to the audit opinion of a certified information technology (systems) auditor dated March 15, 2023, it has not been determined that in 2022 “Gasso” information technologies will not guarantee the confidentiality of commercial information obtained by the system operator in the performance of his duties. “Latvijas gāze” has completely stopped sharing its customers’ consumption and payment systems with “Gaso”.

After evaluating the documents and information submitted by Gaso, KYB concluded that during the reporting period, Gaso complied with the requirements set out in the Energy Law section to ensure the independence of the natural gas distribution system operator. Among them, the “Gaso” council and board members were not involved in the structures of the vertically integrated natural gas trader – the “Latvijas gas” concern – directly or indirectly responsible for the production, transmission, storage of natural gas. , supply and trade of liquefied natural gas services.

Besides being able to act independently of the concern “Latvijas gāze”, the council and members of the “Gaso” board of directors, “Gaso” has been given the right to decide independently of the concern “Latvijas gāze” regarding the assets needed. operation, maintenance and development of the natural gas distribution network.

Likewise, the duties and measures to be taken by certain employees defined in the Compliance Program developed by “Gasso” do not allow discriminatory behavior and ensure that compliance with the “Gasso” Compliance Program is checked appropriately.

The PUK Council agreed that the measures taken by Gaso to achieve independence in 2022 were sufficient.

According to preliminary data, Gaso’s revenue last year was 52.46 million euros, 11.3% less than in 2021, and the company lost 1,751 million euros compared to its profit a year ago.

“Gasso” is the only natural gas distribution system operator in Latvia. The company provides the security of natural gas networks, technical services and natural gas consumption accounting. “Gaso” was established at the end of 2017 by separating the operation of the “Latvijas gas” distribution system and fulfilling the requirements of the European Union and the state to ensure the independence of the natural gas distribution system. According to “Firmas.lv” information, the capital of the company is 39.9 million Euros. Gaso’s sole shareholder is LG.