JSC  "Latvijas  Gāze" has submitted a draft tariff list for natural gas

to Public Utilities Regulator.

Due  to  increase  of  natural  gas  procurement prices in 2002 and the

immediate  need  to  implement  investment  programme,  "Latvijas Gāze"

recommends the following tariffs:

1)  starting  with  01.04.2002,  to  increase  natural  gas tariffs for

industrial  consumers  by 7.8%-10.3% in average, depending on quotation

price of heavy oil, and on the individual tariff group, based on annual

consumption volume;

2)  starting  with 01.04.2002, to have the natural gas price for retail

consumers

6.0  santimes per m3, retaining the present fixed subscribtion fee. The

average  tariff  increase  will  be 6% to 14%, depending on the type of

use:  population  having gas stoves will pay about 10 santimes more per

month  (including  VAT),  while population using individual gas heating

system  will  pay LVL 1.40 more per month, including VAT. Gas price for

retail consumers has not been increased since 1997;

3)  starting  with  01.07.2002,  to  make  changes  in Item 2.10 of the

Methodological  Guide  for  natural  gas tariff calculation, specifying

that,  for  industrial  users, price discounts upon reaching a specific

quoted  heavy oil price will be set according to gas consumption of the

object, instead of the total annual consumption of the legal entity.

The draft tariff list has been prepared without the proposed amendments

to Item

2.10 of the Methodological Guide.