This document sets out the Special Regulatory Environment Rules adopted by the Public Utilities Commission. The Rules establish a legal framework that allows public service providers to test new or significantly improved products, technologies, or services within a limited and controlled setting. Under this “special regulatory environment,” the regulator may temporarily allow deviations from existing regulatory requirements to support innovation, provided that such testing serves regulated sectors, improves the performance of public service obligations, and delivers identifiable benefits to users.
The Rules define eligibility criteria and application procedures for companies wishing to participate. Applicants must demonstrate the innovative character of the product or service, justify the need for testing in a special environment, and show that the testing can accelerate market deployment while protecting users’ interests. Detailed documentation is required, including a risk assessment, user protection measures, and a testing plan. Certain entities are excluded, notably those subject to sanctions, insolvency proceedings, or control by Russian or Belarusian state-related persons. The regulator decides on applications within one month of receiving complete documentation and specifies the scope, duration, and applicable regulatory flexibilities.
The document further regulates implementation, supervision, and termination of the special regulatory environment. Testing may last up to three years, with a possible one-year extension, and companies must submit semi-annual progress reports and immediately notify the regulator of new risks. The regulator may amend or revoke the authorization if conditions are breached or user interests are threatened. After testing ends, companies must submit a final report, which the regulator evaluates to determine whether regulatory amendments are needed to facilitate wider innovation deployment. The rules enter into force the day after publication in the official journal Latvijas Vēstnesis.