Latvia's electricity utility Latvenergo on June 3 signed an agreement with the Finnish IT company Tekla Corporation to introduce geographical information system software in the utility's power distribution network.
The geographical information system involves electronic mapping of electricity grids, which allows service personnel to pinpoint the exact location of damaged lines, make accurate determination of load, optimum development of lines, and so on.
The project will also allow to improve the network's documentation for the purposes of information analysis.
Latvenergo said that the tender for introducing the system was originally announced in 2002 and that apart from Tekla, two Latvian companies - TietoEnator and Envirotech - also bid for the contract.
The agreement signed on June 3 states that the contract price must not exceed 520,000 lats (784,000 euros), VAT exclusive.
Tekla said in a statement on the Helsinki Stock Exchange that cooperation with Latvenergo began two years ago when the Tekla Xpower system was introduced in the area surrounding Riga.
Under the latest agreement, the system will be implemented in 12 new electricity distribution districts in Latvia, after which Tekla Xpower will be used in network operations covering about half of Latvia's electricity customers.
The agreement also includes an option to extend the use of the system to cover all of Latvia.
Tekla's responsibilities under the agreement include software deliveries and services such as training and consultation.
The Finnish IT company said that Tekla Xpower had fully satisfied Latvenergo expectations and needs.
The Tekla Xpower system is being used by more than 70 companies worldwide.
Tekla is the largest supplier of IT solutions to northeastern European energy companies. Its turnover in 2002 reached 41.5 million euros.