20. pants

One of our key objectives is

to advance utilities regulation and enhance competition in the

energy and telecommunications sectors over the medium term. To

this end, the PUC will, by end-April 2002, develop its strategy

paper and a detailed work program. Following the adoption by the

Cabinet of Ministers of a detailed restructuring program for

Latvenergo (which meets the requirements of EU Directive No.

92/96), we will establish by October 1, 2002 separate legal

entities for generation, transmission, and distribution; in

agreement with the World Bank, we have already established the

Transmission System Operator (TSO) as a separate legal entity,

enabling it to carry out its responsibilities independently. We

intend to complete the restructuring program of Latvenergo by

end-2002. We will also reduce the criteria for qualified

customers to 20 GWH by July 1, 2002. Finally, the Telecom Law was

enacted on November 1, 2001, which will pave the way to close the

acquis chapter on telecommunications.