Electricity market operation principles

The operation of the electricity market consists of two parallel stages:

  • physical supply of electricity by wires from electricity producers to customers. This supply is provided by transmission and distribution networks.
  • electricity trade transactions: producers sell the generated electricity on the electricity exchange where electricity traders buy it to resell it to their customers – electricity consumers.


Sadales tīkls provides distribution system services and payments for these services are made in accordance with the tariffs for the distribution system operator’s services approved by the Public Utilities Commission.

The role of Sadales tīkls in the electricity market includes:

  • high-quality and safe electricity supply;
  • new connections implementation;
  • electricity consumption metering at objects and transferring these data to electricity users and traders.