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Tuesday 19.09.2017 | Name days: Verners, Muntis
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EM: Latvia’s use of electricity connections becomes more effective

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RULatvian Economy Ministry has concluded that review of electricity transmission system’s tariffs and balancing of said tariffs has helped reach the desired goal – motivate a large number of users to reconsider the power output of their electricity connections and reject maintenance of unjustifiably high or unused connections.

The ministry notes that since June 2016 owners of 41,000 connections in cities and the countryside have reviewed their connections. Around 1,500 clients change the size of their connections in both directions every month. In addition, clients have dropped approximately 10,000 electricity network connections since June 2016.

This helps optimize the capacity of the country’s electricity network, opening the way for faster and cheaper connections. It also helps avoid situations when other users have to pay for unused connections.

In September 2016, the Cabinet of Ministers ordered Economy Ministry to write a report on the effect of electricity transmission tariffs on protected users.

«It should be said that 1 August 2016 marked the coming into force of Public Utilities Commission’s approved tariffs for Sadales tīkls electricity supply services. Unlike the previous tariff, when residents paid for supplies of each consumed kW/h, the balanced tariff price consists of two components: fixed monthly fee for connection and fee for electricity supply in accordance with consumed kWh. At the same time, the fee for electricity supply was reduced 22%, resulting in a situation when clients that effectively use their electricity connections had unchanged or even reduced electricity bills,» the ministry reports.

The ministry mentions that new transmission system service tariffs have ensured costs do not grow for protected users. Following the wholesale price decline observed in 2016, electricity traders have reduced prices for households as well. For example, Latvenergo’s Universal tariff’s electricity component has been reduced by 3.3% – from EUR 0.053 to EUR 0.0512.

With that, bills of households that use single-phase connections and consumer 50 to 100 kWh with Universal tariff have reduced by approximately 1.1-1.3%. Clients with contracts including other tariff plans with other traders may experience larger decrease of monthly bills, the ministry explains.

In addition, Economy Ministry says activities previously performed by Sadales tīkls and other involved sides have ensured better awareness for society about tariff changes and options to reduce monthly costs. It is worth mentioning that 50% of residents say tariff-balancing solution was fair.

Following the changing structure of electricity costs, which is associated with changes to regulated tariffs and payments, Economy Ministry advocates considering opportunities to review the established protected electricity users support  system to make sure it is maintained by state and municipal institutions and reduce the administrative burden for involved state and municipal institutions and businessmen.

The ministry also proposes expanding support system for socially unprotected groups of residents.

Ref: 224.109.109.5981


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