20. Article

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.