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Wednesday 21.03.2018 | Name days: Una, Unigunde, Dzelme, Benedikts

Changes to natural gas tariffs in Latvia; bills expected to increase

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUNew natural gas transmission system tariffs will allow more efficient use of connections, said chairperson of Latvijas gāze’s subsidiary Gaso Ilze Pētersone-Godmane in an interview to Latvijas Radio on Wednesday, 14 March.

She reminded that Gaso has submitted the new tariff project to the Public Utilities Commission. It is planned to review the project at the 14 March meeting.

Pētersone-Godmane explained that the last time gas tariffs had undergone changes was ten years ago. Because of that, it was necessary to develop a new tariff, because the situation with gas consumption has changed since 2008. Consumption rates have declined by approximately 30% in the last ten years due to changes in the industrial sector, increased energy efficiency, increased availability of renewable energy resources and climate change. There are also around 20,000 clients in Latvia with gas supply connections. However, these clients do not consume gas.

She mentioned that in spite of gas consumption, Gaso has a duty to secure safe and efficient infrastructure – this requires investments. The current tariff does not help with the situation. Because of that, it has been decided to introduce a fixed fee for gas supply connection. It will be EUR 1.77 a month for households regardless of their consumption.

Pētersone-Godmane mentioned that the new tariff is «a reasonable and balanced step» that will have households and businesses alike to review their gas supply outputs. It is expected that the clients who do not consume gas will refuse connections, thereby making the gas supply infrastructure more efficient.

Game manager notes that for households that only use gas for cooking the tariff will grow only slightly. For households that use gas for heating the tariff will either remain unchanged or grow slightly. For companies tariff changes will depend on the frequency of gas consumption.

On 14 March, a meeting will be held at the Public Utilities Commission’s seminar hall in Riga, Ūnijas Street 45 to discuss the tariff project submitted by Gaso.

During the meeting, Gaso representatives will explain the core and economic justifications behind the tariff project. All participants of the discussion will be allowed to provide proposals and comments on the tariff project.

Once proposals have been compiled, Public Utilities Commission will carefully evaluate them.

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