The basis of operation of the Commission is set by the law “On Regulators of Public Services”. Amendments to the law “On Regulators of Public Services” were prepared during 2004 and approved by Saeima (Parliament) on December 2. These amendments envisage:

-         to strengthen the Commission’s status as a derived public person;

-         to change the existing responsibility regulation of public service regulators;

-         to delegate rights to the Cabinet of Ministers to set a stable rate of state duty for public service regulation and the payment procedure of state duty for public service regulation;

-         to introduce new efficient regulatory instruments, especially in cases when the public service provider does not abide by or violates the license conditions;

-         to delegate rights to the Commission to specify quality requirements for public service provision;

-         to harmonize the law with the Administrative Procedure Law, State Administration Structure Law and the Commercial Law, as well as perform editorial revisions.

After amendments to the law the new Commission’s statutes were prepared and approved on December 15.

The Commission continued to follow the “Strategy and Basic Principles of Operation of the Public Utilities Commission” approved in 2002, as well as the “Code of Ethics of the Public Utilities Commission” approved in 2003.

Specific Commission’s functions, tasks and rights in each regulated sector are specified by the respective sector laws – Energy Law, Postal Law, Electronic Communications Law and Railway Law. In 2004 amendments were made to the existing sector laws, as well as new laws were passed.

In 2004 work was done on the amendments to the Energy Law which were adopted in 2005, and Electricity Market Law was prepared on which work still continues in 2005.

Amendments to the Postal Law were adopted in February 2004, implementing the respective norms of the European Union directives on gradual opening of the postal sector to competition, licensing of postal service providers and issuance of general authorisations, tariff setting and complaint review.

On April 15, 2004 the Cabinet of Ministers issued regulations No.304 “Electronic Communications Law” according to the procedure of Article 81 of the Constitution and on October 28, 2004 the Saeima adopted the Electronic Communications Law which replaced the previous Law On Telecommunications. The Electronic Communications Law introduces new norms of EU directives in the communications sector, particularizes Commission’s functions and specifies new procedures for implementation of these functions. With the approval of the new law the Commission must develop about 40 new secondary legislation acts – regulations, methodologies, procedures and orders. In accordance with the tasks specified in the Electronic Communications Law, the structure of the Commission and the personnel list has also been changed.

Amendments to the Railway Law were adopted in March 2004 expanding the functions of the Commission. As long as the infrastructure manager also provides railway carriage services, public railway infrastructure usage fee must be set by the Commission.


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