On 26 September Shareholder’s Meeting of Latvenergo AS decided to terminate Latvenergo participation in Nordic Energy Link AS that performs connecting power transmission cable operations between Estonia and Finland. It is expected to conclude the deal by the end of this year.

According to the European Parliament and Council Directive (2009/72/EC) on 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive (2003/54/EC), Latvenergo AS needs to perform activities so that after 31 December 2013 as an electricity producer and trader it would not continue, to be an owner of the electricity transmission infrastructure including the Nordic Energy Link AS owned power cable of 350 MW connecting Estonia and Finland. To implement the above, one of the solutions is the termination of partnership in Nordic Energy Link AS that has been done accordingly.   

According to the signed Founding contract on 15 June 2004, Latvenergo AS holds 25% shares of Nordic Energy Link AS - a joint stock company registered in the Republic of Estonia. The ownership structure of Nordic Energy Link AS consists of: Eesti Energia AS 39,9%, Latvenergo AS 25%, Lietuvos Energia AB 25%, Finestlink Oy 10,1%.

The main reason why Latvenergo decided to participate in Nordic Energy Link project in 2004 was to use the interconnection for commercial purposes and trade electricity in Scandinavian market in the Nord Pool Spot exchange by selling electricity during the floods as well as importing electricity from Finland during low price periods. At the moment negotiations are conducted between the members of the project for the final agreement and the most favourable transaction process.       

Additional information:

Jānis Irbe

Group Treasurer

Phone: +371 67 728 239

E-mail: investor.relations@latvenergo.lv

www.latvenergo.lv/investors/eng

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) and Liepājas enerģija SIA (thermal energy generation and supply, electricity generation), as well as Elektrum Latvija SIA (electricity supply), a subsidiary of Elektrum Eesti OÜ.