NATURAL GAS TRADE AGREEMENT

General terms

 

  1. TERMS USED IN THE AGREEMENT
    1. Trader – SIA “Ignitis Latvija”, registration number 40103642991, legal address: Gustava Zemgala gatve 74A, Riga, LV-1039.
    2. User – a household user who, pursuant to this Agreement, purchases and uses natural gas and Services from the Trader in their household for their own needs (final consumption), and not for any commercial or professional activities.
    3. Party – the Trader or the User individually. Parties – the Trader and the User collectively.
    4. Agreement – this natural gas trade agreement, consisting of the Special Terms (ST), General Terms (GT), Annexes to the Agreement (if attached), amendments to the Agreement (if concluded), as well as the terms of use for the Trader’s self-service portal and mobile application, distance contract terms, and other documents specified in the Agreement.
    5. Natural Gas or gas – a mixture of hydrocarbons obtained from underground, which under standard conditions is in a gaseous state.
    6. Gas Delivery Point – Users propriety border of the natural gas supply system and the connection point to the distribution system, through which the distribution system operator (DSO) delivers gas to the User and the User receives this gas.
    7. Gasified Object – the building(s), part(s) of a building, or equipment connected to the gas supply system as specified in the ST of this Agreement, over which the User has ownership, possession, or usage rights.
    8. Services – balancing services and any other services specified in this Agreement necessary for ensuring gas supply, regardless of whether these services are provided by the Trader or any other third party.
    9. Total Gas Quantity in Energy Units – the quantity of gas expressed in kilowatt-hours (kWh), using the gross calorific value of gas.
    10. Commercial Meter – a gas measuring instrument or a system of gas measuring instruments for the accounting of gas consumption for the purposes of settlement of payments and control of the permitted maximum load (i.e., maximum gas flow per hour) and gas parameters.
    11. Day – a period of time starting at 07.00 in the morning and ending the following morning at 07.00 (starting at 05.00 in the morning and ending the following day at 05.00 in the morning according to Universal Time Coordinated (UTC) during winter time, and starting at 04.00 in the morning and ending the following day at 04.00 in the morning during summer time).
    12. Year – a period of time starting at 07.00 in the morning on January 1st of a calendar year and ending at 07.00 in the morning on January 1st of the following year.
    13. Billing Period – a time period for which payments are settled. The Billing Period is 1 (one) month long. Each Billing Period begins at 07.00 in the morning on the first day of the calendar month and ends at 07.00 in the morning on the first day of the next calendar month.
    14. Transmission System Operator or TSO – the gas transmission system operator.
    15. Distribution System Operator or DSO – the gas distribution system operator.
    16. Propriety border of the gas supply system – the place of division of ownership and responsibility between the natural gas supply systems of the DSO and the User.
    17. Gas Trade Period – the time period specified in ST Clause 2 of this Agreement, during which the Trader sells gas to the User for the agreed price.
  2. SUPPLY OF NATURAL GAS
    1. The Trader shall commence and ensure the supply of gas to the User at the gas Delivery Point in accordance with this Agreement and applicable legal acts, provided the User’s Gasified Object is connected to the gas supply system and the gas delivery service can be provided to the respective Gasified Object.
    2. The specified Gasified Object, Gas Delivery Point, address, ID number, purpose of gas use, permitted maximum load, and the lowest measurement limit set for the Commercial Meter at each of the User’s Gas Delivery Points are determined in the ST of the Agreement. The User is obliged to notify the Trader of changes in the ownership, possession, or usage rights of the Gasified Object no later than five  (5) working days prior to making such changes.
    3. The Trader ensures gas supply to the User if the User has made all payments and fulfilled other obligations towards the Trader provided for in this agreement for which the deadline for performance has arrived.
    4. Ownership rights to the gas pass from the Trader to the User at the Propriety border of the gas supply system.
    5. For billing purposes, the User shall read and submit the readings of the Commercial Meter to the DSO at the time specified by the Trader or the DSO. If the User does not submit the readings of the Commercial Meter to the DSO in a timely manner, the User’s gas consumption shall be determined in accordance with applicable legal acts.
    6. The total quantity of gas is expressed in energy units (kWh), which the Trader must supply to the User during the Gas Trade Period specified in the Agreement. The DSO performs the conversion of the gas quantity consumed by the User (m³) into energy units (kWh).
    7. The User may receive information from the Trader relating to the sale of gas to the User in accordance with the applicable legislation, as well as submit questions or claims to the Trader regarding the execution of the Agreement.
    8. If the User fails to make payments for the received gas within the term or amount specified in the Agreement, the Trader may request the DSO to fully or partially suspend gas supply to the User.
    9. The User shall immediately report to the DSO regarding damage to the Commercial Meters, broken seals, and possible errors in the readings of gas Commercial Meters.
  3. SYSTEM OPERATOR SERVICES
    1. The Trader concludes contracts with the relevant system operators to ensure the system services necessary for the User (transmission, storage, liquefied natural gas services, and distribution services), as well as balancing services (if necessary), and make payments to the system service providers.
    2. For system services (transmission, distribution, and storage services), the User shall pay the amount determined by the respective Latvian system operators at the time of gas delivery.
    3. The fee for gas transmission, storage, or liquefied natural gas services outside Latvia, as well as the entry fee into the Latvian transmission system, is included in the gas price specified in the ST of the Agreement. In addition to the gas price indicated in the ST of the Agreement, the User pays for system services: (i) use of the gas transmission system and (ii) use of the gas distribution system in accordance with the approved service tariffs. The respective fee will be calculated and applied in the month following the Billing Period in which the services were used. Current distribution and transmission system service tariffs are available on the websites of the DSO and TSO respectively.
    4. The DSO delivers gas to the gas supply system boundary point in accordance with applicable regulatory acts and according to the permitted maximum load (i.e., maximum permissible gas flow per hour). In relations with the DSO, the User is responsible for compliance with regulatory acts and any procedures and requirements established by the DSO.
    5. The User may not exceed the permitted maximum load. The permitted maximum load is determined in accordance with data provided by the DSO.
    6. The User is informed that under certain circumstances stipulated in regulatory acts and this Agreement, which may or may not depend on the User, the DSO may restrict or suspend gas supply to the User, for which the Trader is not liable.
  4. PAYMENT PROCEDURE
    1. The Trader issues an invoice to the User for gas consumed during the Billing Period as well as for related system and additional Services by the 15th calendar day of the month following the billing month, in accordance with the data provided by the Commercial Meter, the DSO and TSO, and other competent  institutions or persons.
    2. The User is obliged to submit Commercial Meters readings to the DSO within the terms and order specified in regulatory acts and by the DSO. The procedure established by the DSO is published on the DSO’s website.
    3. The Trader has the right to apply a discount to the price of gas supplied to the User if the User simultaneously uses gas and electricity trading services provided by the Trader, as well as in other cases provided for in regulatory acts. If a discount has been granted to the User for the use of multiple types of services offered by the Trader and the User ceases the use of any one service, the Trader has the right to discontinue applying the discount to the gas price henceforth, starting from the next Billing Period.
    4. The User makes payments for gas consumed in the Billing Period and for system and additional Services, including covering expenses for the transfer of funds, based on an invoice issued by the Trader, which is issued by the 15th calendar day of the month and which the User pays by the 21st day of the month. All payments are considered executed on the day the respective amount of money is received in the Trader’s settlement account.
    5. The Trader issues and sends the invoice for gas consumed in the Billing Period to the User electronically, and such invoice is valid without a signature.
    6. The User has the right to apply via the Trader’s self-service portal to receive invoices via postal services. An additional fee is applied for sending invoices via postal services in accordance with the Ignitis price list.
    7. The Trader is not liable for issuing an invoice after the deadline specified in the Agreement if the DSO fails to fulfill its obligations to provide data necessary for invoicing in a timely manner.
    8. If the User delays payment of the invoice, the Trader has the right to charge late payment penalty of 0.15% of the unpaid amount for each day of delay.
    9. Any payment by the User is credited in the following order: first, the late payment penalty is extinguished, then the User’s principal debt, then the Agreement early termination fee (if applicable), and finally other payments related to the execution of this Agreement and other agreements concluded between the Parties. If the invoice issued by the Trader includes payments for several services provided by the Trader under this and/or other agreements and the payment made by the User is insufficient, the received amount is proportionally distributed among the relevant agreements according to the uncovered amount on the day of receipt of payment.
    10. The Trader uses all overpayments made by the User to cover the payment for the next Billing Period or to cover other future payments of the User. If the User requests a refund of the overpaid amount, the Trader shall perform it within 5 (five) working days from the day of receipt of the User’s written request.
    11. If the last day of the payment term falls on a weekend or an official holiday determined as a holiday at the payer’s place of registration, the last day of payment is the next working day.
    12. If the User fails to make payments for gas or system operator services within the specified term, the Trader may send a warning to the User regarding the suspension of gas supply at the Gasified Object. If the User does not make payments within the term indicated in the warning, which is not less than 5 (five) working days, the Trader requests and the DSO suspends gas supply to the Gasified Object. Gas supply is restored within 5 (five) days after the Trader has received payments in full.
    13. If the DSO has established that the readings of the Commercial Meter in the respective Billing Period(s) or the gas consumption calculated by the DSO differs from previously notified readings or calculations, and due to this the invoice(s) for the respective Billing Period(s) must be corrected between the Trader and the User, the established and/or calculated difference shall be reflected in the next invoice, the payment of which is to be made in accordance with the terms of the Agreement.
    14. If the DSO detects an error in settlements for its services regarding the User, as a result of which the DSO recalculates the amounts the Trader must pay to the DSO, the Parties must perform corresponding recalculations and mutual settlements.
  5. PROCESSING AND PROTECTION OF PERSONAL DATA
    1. Within the framework of the Agreement, information on data protection is regulated in accordance with Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 (GDPR). The Parties acknowledge that for the purpose of fulfilling the obligations under this Agreement, the processing of certain personal data of each Party is necessary and, if necessary, such data will be processed for the purpose of executing the Agreement, in accordance with the subject of the Agreement and personal data protection regulations. The Trader processes received personal data in accordance with the Trader’s Privacy Notice, which is available on the Trader’s self-service portal and the Trader’s website Privacy Notice | Ignitis.
    2. The User is informed that the Trader, as a data controller, receives, processes, and stores any information and data necessary for the execution of the Agreement. By signing this Agreement, the User authorizes the Trader to request and receive from the DSO and TSO any information regarding the User’s gas consumption, including consumption of the trading interval on the day of submission of the request or for previous periods.
    3. The User is informed that in the event of non-fulfilment of the User’s payment obligations specified in the Agreement, their personal data may be transferred without prior warning to a debt recovery service provider for debt collection, and information about the User and their debt may be entered into a credit history database.
    4. The User shall not transfer identifiers assigned to them and/or passwords created to third parties. The User assumes full responsibility for the actions of third parties and the consequences caused if such information has come into the possession of said persons as a result of the User’s actions.
  6. VALIDITY AND AMENDMENTS OF THE AGREEMENT
    1. This Agreement enters into force on the day of its mutual signing and gas is supplied and Services are provided during the Gas Trade Period specified in the ST of the Agreement. The Agreement is valid until the full fulfilment of the obligations of the Parties.
    2. The Trader has the right to make amendments to the GT of the Agreement, the terms of use of the Trader’s self-service portal and mobile application, and distance contract terms, as well as other documents specified in the Agreement, by informing the User of the changes at least 30 (thirty) days in advance. The respective amendments enter into force and become binding after the publication of their updated version on the Trader’s website.
    3. In the event that the User does not agree to amendments to the GT of the Agreement and they are made in the first two years of the Gas Trade Period, the User has the right to terminate the Agreement in the order specified in Section 8 of the GT. If the Trader does not receive the User’s notice of unilateral withdrawal from the Agreement, it is considered that the amendments are binding on the User.
    4. Regarding changes in the data of the Parties, the respective Party has the obligation to inform the other Party in writing no later than within 10 (ten) calendar days.
    5. The Trader may make changes to the ST of the Agreement in accordance with information provided by the DSO.
  7. EXTENSION OF THE AGREEMENT
    1. The Trader shall inform the User 6 (six) weeks before the end of the Gas Trade Period and, using electronic means of communication and/or the Trader’s self-service portal and mobile application, send the User a written offer for the subsequent period. If the User does not express objections to the Trader’s offer before the end of the Gas Trade Period or the Parties have not agreed in writing on other terms, the Agreement is extended for a period equal to the initial term of the Agreement.
  8. TERMINATION OF THE AGREEMENT
    1. The User has the right to withdraw from the Agreement within 14 days from the day of concluding the Agreement, if the Agreement is concluded using means of distance communication. The User reports the exercise of the right of withdrawal to the Trader by calling       or sending a completed withdrawal form (available here ) to the Trader’s e-mail address [email protected] or legal address, signing it electronically with a secure electronic signature or submitting it signed in paper form.
    2. The User may terminate the use of gas at the Gasified Object by informing the Trader at least 7 (seven) working days in advance and indicating the time of termination of the Agreement, as well as paying the Agreement early termination fee, if such is applicable.
    3. If the User unilaterally terminates the Agreement before the end of the Agreement term, the Trader has the right to apply the Agreement early termination fee specified in the ST of the Agreement. The Trader has the right to request a fee for early termination from the User in accordance with the ST of the Agreement also in the case where the Agreement concluded for a specific term is terminated early by the Trader based on Clauses 8.5.1.-8.5.6. of the Agreement.
    4. The User does not have to pay the Agreement early termination fee in accordance with the ST of the Agreement if:
      1. the User renounces the universal service;
      2. the User terminates the Agreement later than two years after the start of the Gas Trade Period and the Gas Trade Period is determined to be longer than 2 years;
      3. the User terminates the Agreement in connection with amendments to the GT terms of the Agreement made by the Trader in the first two years of the Gas Trade Period provided for in the ST of the Agreement. In such case, the User may terminate the Agreement within 30 (thirty) days after the moment of receipt of the Trader’s notice regarding amendments. The respective provision does not apply to changes made based on technical connection data provided by the DSO; regulatory acts (including regarding the amount of a mandatory payment, tax, or duty, the procedure for its payment, administration, or application of exemptions and reliefs); decisions of supervisory institutions and court judgments, and other circumstances independent of the Trader due to which the Trader has an obligation to amend the terms of the Agreement.
    5. The Trader is entitled to unilaterally withdraw from the Agreement and/or suspend gas supply temporarily, informing the User at least 5 (five) calendar days in advance, if:
      1. it is established that gas at the Gasified Object is used for purposes not related to household needs;
      2. the Trader receives information from the DSO that the User has changed the gas trader or terminated gas usage;
      3. the User does not fulfil obligations specified in the Agreement and does not make payments for gas after the suspension of gas supply to the User in the order specified in Clause 4.12 of the GT of the Agreement;
      4. the system services agreement concluded between the User and the DSO is terminated or its execution is suspended due to the User’s fault;
      5. the Trader learns that the User no longer has ownership, possession, or usage rights to the Gasified Object; however, the Trader is entitled at its own discretion to terminate the Agreement only regarding the specific Gasified Object;
      6. gas supply and usage at the Gasified Object has not occurred for longer than a year;
      7. in other cases specified in regulatory acts.
    6. Regardless of the reason for termination of the Agreement, the User shall make payment to the Trader for consumed gas, received Services, pay late payment interest fees if such have arisen, and other payments arising from the Agreement. In any case where the Agreement is terminated (regarding one, several, or all Gasified Objects) or gas supply is suspended to one, several, or all Gasified Objects, the User must notify the DSO of the Commercial Meter readings on the day of termination of the Agreement or suspension of gas supply in accordance with DSO regulations.
    7. The User must reimburse the Trader for DSO or TSO costs for the suspension and restoration of gas supply to the User, if gas supply has been suspended due to the User’s fault, due to the User’s delayed payments, or for other reasons for which the User is responsible.
    8. If the time of termination of the Agreement is not notified in accordance with the terms of the Agreement, the Agreement is considered terminated on the last day of the calendar month or on the day when the DSO (or in exceptional cases – the TSO) has terminated the provision of system service to the User, depending on which of the events occurs first.
    9. The Parties agree that the obligation to perform recalculations and settlement corrections for gas consumed and Services provided in accordance with the Agreement, if the justification for making such recalculation is established after the termination of the Agreement, is binding on the Parties also after the termination of the Agreement. The time period in which the obligation to perform recalculation and settlement corrections is in effect cannot be longer than specified in regulatory acts.
  9. LIABILITY OF THE PARTIES
    1. The Trader is not liable for delays in commencing gas supply if the reason for such delay is that the User has not provided correct information to the Trader or third parties on timely or in a proper manner, to the extent such information is necessary for the Trader to be able to sell gas to the User. The DSO is responsible for the actual supply of gas to the User’s Gasified Objects and for the quality of gas supplied to the User.
    2. The Parties are released from liability for partial or complete non-fulfilment of obligations if this non-fulfilment has arisen as a result of force majeure circumstances. Force majeure circumstances are considered to be circumstances of an extraordinary nature which make the execution of the Agreement impossible and which the respective Party could not and should not have foreseen, and which the respective Party could not prevent with reasonable means.
    3. A Party unable to fulfil its obligations due to force majeure circumstances shall inform the other Party in writing within 3 (three) working days after the occurrence of such circumstances. If such notice is not sent, the respective Party cannot be released from liability for the non-fulfilment or improper fulfilment of its Agreement obligations due to force majeure circumstances.
    4. If force majeure circumstances, due to which a Party cannot fulfil its obligations, last longer than thirty (30) calendar days, the other Party is entitled to terminate the operation of the Agreement by notifying the second Party in writing 1 (one) working day in advance.
    5. The Parties hereby certify that all information regarding this Agreement is confidential and may not be disclosed to third parties without receipt of the Trader’s prior written consent, unless such information or the Agreement must be submitted to state institutions or courts in the cases and order specified in the regulatory acts of the Republic of Latvia, or to third parties to ensure the execution of the Agreement, to professional consultants, or in connection with the Trader’s presence in the public market.
  10. OTHER PROVISIONS
    1. The legal acts of the Republic of Latvia apply to the Agreement.
    2. If a contradiction is found between the terms of the Agreement and the current legal framework, the regulatory acts of the Republic of Latvia apply first, then the ST of the Agreement, and finally the GT of the Agreement.
    3. The titles of the structural parts of the Agreement are formed to ensure its overview but do not affect its interpretation.
    4. All disputes and disagreements arising in connection with the fulfilment of Agreement obligations are to be resolved by mutual agreement of the Parties or by using out-of-court dispute resolution options for consumers, by submitting a claim to the Trader in writing in accordance with Clause 10.5 of the Agreement. If agreement is not possible, disputes and disagreements are to be submitted for adjudication in the court of the Republic of Latvia in the order specified in regulatory acts.
    5. The User has the right to submit complaints or questions arising from the Agreement to the Trader using the means of communication specified in the ST of the Agreement or the Trader’s self-service portal or mobile application. If complaints or questions are submitted sent by e-mail or via postal services, the Trader undertakes to review such complaints or questions within 14 (fourteen) days.
    6. All related notices and other correspondence between the Parties must be sent in writing and are considered properly submitted if: a) submitted on the Trader’s self-service portal; b) sent by registered letter; c) sent using e-mail: to the User - contact persons indicated in the ST; to the Trader at [email protected]. Notices and other correspondence submitted via e-mail or on the Ignitis self-service portal, if the other Party has received them by 16.30 on a working day, are considered received on the same working day, but if received after 16.30 – considered received on the next working day. Notices and other correspondence sent by registered letter are considered received after 7 (seven) calendar days from the day of dispatch.
    7. In the event of any discrepancies between this English version of the Agreement and the Latvian version, the Latvian version shall prevail.