bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Ceturtdiena 17.08.2017 | Name days: Oļegs, Vineta
LatviaLatvia

Experts: integrated market equalizes prices in Baltic States

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUFollowing the launch of NordBalt and LitPol Link connections, the price of electricity on the market had reduced significantly, and the average expected price calculated based on exchange quotations is 34.14 EUR/MWh.

The reduction of the price and enhancement of the connection network are the most notable changes that appeared after the liberalization of the electricity market. The opening of the gas market, expected to take place next year, will provide consumers with more options. Before the upcoming Energy – 2016 conference, which is expected to address topical matters of the energy industry, specialists have compiled the most notable advantages of an open electricity market and perspectives for the liberalization of Latvia’s gas market.

The liberalization of Latvia’s electricity market has contributed much to the country’s overall energy sector. The market continues to fulfil its main goal – supply electricity to consumers at appropriate market prices, admits Chairman of the Board of Latvenergo Aris Zigurs.

«One other important event that is expected to have an effect on enterprises and most households in Latvia is the opening of the gas market. Similar to the electricity market, multiple suppliers will appear to supply gas to households and enterprises. In addition, it is no less important to fulfil the European Commission’s requested separation of sales and supplies of gas. This will provide consumers with a transparent and appropriate market price for all components – tariffs for trade and supplies of natural gas,» – explains Latvenergo production director Maris Kucinskis.

The previously predicted merging effect in conditions of a free electricity market surfaced quickly: market statistics show that electricity price in Latvia had come close to prices present in Scandinavia in February and March – around 30 EUR/MWh. Three or four years ago, on the other hand, the price was close to 50 EUR/MWh.

«In 2016, the biggest influence on the market was provided by the Lithuania-Sweden connection, which has effectively equalized electricity procurement prices for Latvia and Lithuania with Estonia. We expect the price fluctuation amplitude will increase in the future. This means that daytime amplitude will no longer be higher than before. On top of that, night-time amplitude may become lower than it is now,» – admitted Aris Zigurs.

With that, Baltic States have become the most integrated region in Europe after the launch of NordBalt and LitPol connections. This opens new procurement opportunities for traders and consumers in Scandinavian countries. Ten years ago, Baltic States were somewhat isolated in the field of energy. Now, on the other hand, the region is not only well-connected with other countries, but is also an important transit point for electricity supplies.

A single exchange for Latvia and neighbouring countries makes the price on electricity clear, transparent and comparable.

«Market price is the best price. It is a valuable advantage for all consumers – the population and legal persons: the option to pay for electricity as much as it is worth. Furthermore, it is clear now which factors form end tariffs. Conditions have changed – now regulated prices do not make the wrong impression as to how much electricity truly costs,» – explains energy expert Reinis Aboltins.

Speaking of conditions for supplies, experts remind that two electricity tariff components are regulated by the government. Regulations are currently in the process of improvements. With that, consumers can expect certain changes.

The main benefit for consumers provided by the liberalization of the electricity market, and the gas market soon, is the ability to choose traders. All traders offer equal supply conditions. Because of that, consumers should pay attention to prices, contract conditions, payment method convenience and other services related to the supply of electricity.

A free market often affects the lifestyle of the population: while it was a regular utility payment in the past, now consumers can use ‘personal energy efficiency programmes’ to cover payments for electricity at market prices.

Consumers are free to review and change their habits in using electricity, reducing its consumption at peak hours. The beneficial package is currently in the hands of consumers who have smart counters installed and who procure electricity at market prices, admits Aboltins.

Ref: 102.109.109.7872


Leave a reply

Latvia’s export growth was moderately rapid in the first six months of 2017

Compared with the same period of 2016, Latvia experienced a moderately rapid export growth in the first six months of 2017, according to data published by Eurostat on Thursday, 17 August.

Latvia’s annual inflation in July was one of the highest in Europe

Inflation indexes in Latvia and the UK both reached 2.6% in July, which is one of the highest indexes in the European Union, according to data published by Eurostat on Thursday, 17 August.

Kirsis withdraws his candidacy in favour of Aseradens

Riga City Council member Vilnis Kirsis has decided to withdraw his candidacy from the race to become chairman of Unity in favour of a different candidate – Economy Minister Arvils Aseradens.

Rinkevics expresses Latvia’s interest in maintaining political consultations with Palestine

On Thursday, 17 August, Latvia’s Foreign Affairs Minister Edgars Rinkevics met with the leader of Palestine’s diplomatic mission in Latvia, ambassador Taissir Al Adjouri, to discuss mutual relations between Latvia and Palestine and the peace process in the Middle East.

Putin grins to the world’s seven billionth baby, Lithuania wary of border incidents

Russian President Vladimir Putin paid a visit this Wednesday to Kaliningrad, the westernmost point of Russia, but the reports about his trip in the Russian enclave and over the border in Lithuania were strikingly different.

Survey: red considered the safest colour for a car

Most Latvian drivers consider red to be the safest colour for a car. The most popular, however, is black, according to results of a survey by Virši-A fuel trader.

airBaltic’s number of carried passengers reaches a record in second consecutive month

Latvian airBaltic airline carried 393,312 passengers in July 2017, which is 21% more than the same period last year. The number of passengers carried by airBaltic remains the highest it has ever been in the airline’s history, BNN was informed by the company.

Brivais vilnis: nearly all fish processing companies are experiencing losses

Currently nearly all fish processing companies in Latvia are experiencing major or minor losses, says Brivais vilnis chairman Arnols Babris.

American helicopters to perform low-altitude flights within Latvia’s airspace

U.S. Air Force Brigade’s Task Force Phoenix helicopters, which are stationed in Latvia as part of Atlantic Resolve operation, will be performing low-altitude flights from 16:00 to 18:00 from Lielvarde to Dobele on Friday, 18 August.

Healthcare Ministry’s state secretary Karlis Ketners may be replaced

Latvian Healthcare Ministry may replace its state secretary Karlis Ketners. It is possible he will be transferred to work at Finance Ministry, as reported by LTV.

Suspects in Europe's insecticide egg scandal before Dutch court

In the Netherlands, two men have been in court in relation to the scandal of eggs containing banned insecticide that has caused an EU-wide health scare and cost millions of euros of damages.

Indian national with fake documents apprehended on Latvian border

An Indian citizen travelling from Moscow on a bus was caught at Terehovo border control point in Latvia for presenting officers a fake EU family member’s resident card. No criminal process was launched. The person returned to the country he was travelling from.

Latvijas dzelzceļš will not have to pay dividends from last year’s profits

The government decided on Wednesday, 16 August, that Latvijas dzelzceļš will not have to pay dividends from last year’s profits, which were EUR 880,998.

Latvian citizenship provided to 103 people

The Cabinet of Ministers has issued an order to provide Latvian citizenship to 103 people through naturalization.

Estonian Inbank's profits reach EUR 5.7 million in six months

Estonian financial services' provided Inbank made a profit of 5.7 million euros in the first half of 2017, which is a 429.4% increase compared to the respective period in 2016.

Agriculture Ministry invites residents to sign up for measures to support fisheries

From 21 August onward, Rural Support Service plans to start accepting applications for projects to receive support from European Maritime and Fisheries Fund’s action plan for development of fisheries in 2014-2020 as part of projects Innovation, Productive Investments in Aquaculture and Fishing and Aquaculture project processing.

Estonia seeks to improve reputation of state as employer

As the Estonian Ministry of Finance wishes to boost the reputation and brand of the Baltic country's public sector, it has announced a procurement tender aimed at preparing an action plan for reaching these goals.

Warning: there may be short-term problems with Swedbank internet banking functionality

Because of Swedbank’s planned IT modernization work scheduled for the night to Thursday, 17 August, there may be short term problems with payment card and internet banking functionality, the bank warns.

Aseradens: neither Usakovs nor Lembergs should be allowed to become prime minister

If he became chairman of Unity, Economy Minister Arvils Aseradens would mobilize democratic forces to prevent the possibility of either Aivars Lembergs or Nils Usakovs becoming prime ministers, Aseradens said in an interview to 900 seconds programme of LNT.

Caksa believes increasing wages for doctors would improve politicians’ credibility

The planned wage increase in healthcare could be the first step towards improving politicians’ credibility, says Healthcare Minister Anda Caksa.

Bill Gates donates USD 4.6 billion, reduces shares in Microsoft

The co-founder of the U.S. computer software firm Microsoft, Bill Gates, has allocated to charity 4.6 billion U.S. dollars (3.9 billion euros), which is the philanthropist's highest donation since the year 2000.

LOSP proposes using electronic packing slip system to reduce fraud

An electronic packing slip system for goods would be invaluable for agricultural goods, because it would help push out and reduce VAT fraud, says Latvian Agricultural Organisation Cooperation Council.

Latvia and Russia agree on exchange of additional 3,000 universal permits for cargoes

Latvia and Russia will exchange 7,000 universal permits for international cargo transports in 2017. This will be the largest universal permit volume in the past 15 years, as reported by Road Directorate.

Sierra Leone hit by tragic mudslide

A tragic mudslide has taken place in Sierra Leone, where flooding in the capital Freetown caused a mudslide, in which nearly 400 people have been have died.

Talks with potential KVV Liepājas metalurgs buyers to conclude in August

Talks with potential buyers of the insolvent KVV Liepājas metalurgs will conclude at the end of August, says representative of the company’s insolvency administrator Dzintars Hmielevskis.

Newest comments