bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Wednesday 23.08.2017 | Name days: Valgudis, Ralfs, Vitālijs
LatviaLatvia

Latvia's electricity market to be liberated this April

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUWith the complete liberalization of Latvia’s electricity market this April, 850,000 households in Latvia will be able to become active electricity market participants and buy energy in a free market.

Those consumers who do not wish to change their provider and consider other options will not be required to review their current contracts, as reported by Economy Ministry.

The main benefits from opening the electricity market include larger competition in the sector and larger freedom of choice for consumers.

Electricity tariffs will no longer be regulated, and traders will offer consumers different options. Consumers will be able to choose the most beneficial options in terms of prices and comparison with other market offers.

Procurement principles will also change along with the market. For example, current practice has consumers pay only for the supply of electrical energy. Starting with April 2014, however, will allow traders to provide other services along with supply of electrical energy: telephone communications + internet + television + electricity. This will allow residents to save money on commission payments for other services and receive an altogether better offer. Electricity is a product that will be allowed to be offered along with other services and products in the near future.

If households do not plan to change their electricity supplier or choose a new offer, their supplier is expected to supply electricity in accordance with universal service requirements.

Universal service requirements state – the 12-month trade contract that has a fixed electricity supply tariff for the whole of the contract’s stated time period is to be terminated. The customer has the right to terminate this contract before its expiration date without being obligated to pay a termination fee.

All customer service will be provided by the chosen trader. AS Sadales tīkls will only work with technical problems. All other communication will be required to be carried out with the trader.

In order to reduce price rise risks for poor households, the 2014 state budget includes the allocation of EUR 3.2 million for price rise compensation. Welfare Ministry is hard at work developing requirements for support mechanism for households that will not be able to pay for utilities, including electricity. The ministry has developed a set of rules that provide for the allocation of support for partial compensation of costs related to electricity price rise. This set of rules is currently being coordinated with other ministries and municipalities.

Public Utilities Commission will also serve as a regulator, evaluating and approving tariffs and approving mandatory procurement component. Any electricity trader will be allowed to work in the free market. This is expected to contribute to the development of competition.

There will be a gradual liberalisation of the electricity market across Europe. Estonia’s electricity market has been open since January 1, 2013. All Estonian households buy electricity in accordance with their needs and from their trusted suppliers.

Ref: 102.109.109.3733


Leave a reply

  1. K. says:

    Maybe a good thing, but the heating system is what really needs a liberalization.

    Everyone can save on electricity if they want/need. But your heating bill is the same even if you turn down the heating.

    The Germans use individual meters on their radiators. We should learn from them.

    Thumb up 0 Thumb down 0

  2. Josh says:

    Total con by the energy companies, if I turn the radiator “off” in my apartment my bill never changes…it would be the same as someone in the next apartment to me who has their radiators turn on all the time. ! the government needs to step in and force these companies to install individual meters per individual apartment, this simply is not fair! Germany, France, UK, etc all have individual gas, electricity and water meters per apartment. Rip off Latvia once again. Why do we accept this?

    Thumb up 0 Thumb down 0

    • jj says:

      new buildings do get individual meters.
      If you want individual meters then ask for them and you will get them!

      Thumb up 0 Thumb down 0

  3. ciris says:

    c’mon guys… government makes their living on heating in Riga. just stop dreaming or gather for liberalization demands either this is individual gas heating or good old-timer wood as alternative for those who don’t want centralized supply. although you have to consider all suburbs with dwelling buildings are just incapable for installation of individual heating, so…

    Thumb up 0 Thumb down 0

  4. JPR says:

    Liberated???? Or maybe HIJACED!

    Thumb up 0 Thumb down 0

  5. Bob L. says:

    Where can I see a list of Electricity Suppliers in Latvia?? I can’t find anything other than Latvenergo – how odd!?

    Thumb up 0 Thumb down 0

Antane admits the situation with Latvia’s transit industry is tragic

Baltic Association – Transport and Logisics President Inga Antane describes the situation with Latvia’s transit industry as tragic. Cargo volume decline has been continuing since 2012. Antane also mentions that, looking at the recent past, 2016 was one of the worst in Latvia’s transit history, Antane said in an interview to RigaTV24.

Daugavpils party decides to leave coalition shared with Harmony

Daugavpils political party Mūsu partija, in which Rihards Eigims is the leader, has decided to leave the established coalition with Harmony in Daugavpils City Council.

Pulks: lunches in Riga’s kindergartens should be free

Riga City Council’s Unity faction leader Olafs Pulks has sent a letter to the city council’s Education, Culture and Sports Department’s Director Guntis Helmanis, asking him to immediately perform calculations and prepare proposals for Riga’s budget project for 2018 to secure free lunches for all children of the capital’s kindergartens.

Study: poor households will gain very little from the tax reform

Poor households will gain very little from the recently approved tax reform. There is a large number of unemployed people who will not the change with PIT, according to results of a study performed by Stockholm School of Economics in Riga and economic policy research centre Biceps.

Puce: either Kucinskis has a memory like a goldfish, or he doesn’t take his own words seriously

Political party For Latvia’s Development invites Prime Minister Maris Kucinskis to prove the promise he once gave to Latvian taxpayers to not change taxes in the next three years. This invitation was extended, considering information that was voiced at the 22 August meeting of the Cabinet of Ministers in relation to the search for ways to expand fiscal space.

Brivais vilnis: grey economy’s presence in fishing industry may be 40%

The total proportion of grey economy in Latvia’s fishing industry may be around 40%, says fish processing company Brivais vilnis chairman Arnolds Babris.

SRS: violations uncovered at restaurants mostly associated with illegal employment

Most of the violations uncovered by Latvian State Revenue Service during inspections at restaurants in Riga and Jurmala are associated with illegal employment and non-declaration of revenue, said SRS Director Ilze Cirule in an interview to Rīta Panorāma this morning 23 August.

Europe commemorates victims of Nazism and Stalinism

Nine years ago, MEP Inese Vaidere and four of her foreign colleagues accomplished that the European Parliament officially approved and issued a written declaration on declaring 23 August the Day of Remembrance of the Victims of European Stalinism and Nazism.

FCMC allows Latvian Central Depository to function as service provider

Finance and Capital Market Commission has decided to allow Latvian Central Depository to start providing services as a central securities depository starting from 18 September.

Without cheap labour, Liepaja prison construction may take a while

Because projects submitted by different construction companies for Liepaja prison exceed the funding that is available for the project, it is planned to cease the procurement. A new one will be announced soon, said Justice Ministry’s state secretary Raivis Kronbergs after a government meeting on Tuesday, 22 August.

Sudraba claims KNAB investigated oligarch case to the maximum extent

Investigators of the so-called oligarch case, which continue working at the Corruption Prevention and Combating Bureau, performed their work responsibly. Information leak during the investigation, on the other hand, had impacted the investigation considerably, said head of the parliamentary investigation committee Inguna Sudraba as a visit to KNAB.

Survey: 43% of internet store users purchase something once a month

Overall, Latvian consumers are satisfied with the purchases they made on internet stores. 65.3% of respondents believe internet stores are safe and reliable. 44.7% of respondents say they have never had any problems when shopping on the internet, according to results of a survey performed by Gudriem.lv.

Government establishes prohibition to wear face-concealing clothes in public

On Tuesday, 22 August, Latvian government supported Justice Ministry’s proposed legislative draft on restrictions for face-concealing clothes, which prohibits residents from wearing such clothes in public places.

Experts explain why a teenager’s «I don’t know» is so dangerous

Most often we say things like «I don’t know» because we are afraid of making choices. Reaching their teens, youngsters become more independent, and the inability to make responsible decisions and say «no» can have serious consequences, says psychologist Sabine Vilcina and youth motivation programme «MOT. Izvēlies drosmi!» manager Ilze Paidere-Stake.

Traders: following VAT decline, prices of goods will decline as well

Latvian Association of Food Traders supports Agriculture Ministry’s proposal to reduce VAT rate for food and separate food product groups. Traders confirm that this step will also reduce food product prices in stores.

The most major risks and solutions for real estate purchase and rent with option to buy

To acquire housing in one’s property, often residents use rent with an option to buy. Sworn attorney Zanda Zaluma of Eversheds Sutherland Bitāns shares advice resident should keep in mind when signing real estate contracts.

Finance Minister: businessmen will be forced to pay larger wages

The current market situation shows that Latvia should speed up its education reform and think about attracting additional human resources from other countries, said Latvian Finance Minister Dana Reizniece-Ozola in an interview to Latvijas Radio.

Latvia to procure Stinger anti-air missile launchers

A mutual contract has been signed between Latvian Defence Ministry and Danish Defence Ministry for the procurement of anti-air missile launchers used by the Danish armed forces, as confirmed by Latvian Defence Ministry.

Oil prices and stock exchange indexes decline in Europe

On Monday, 21 August, oil prices declined. Exchange indexes in USA increased slightly, whereas exchange indexes in Europe declined because of concerns over the policy implemented by the administration of US President Donald Trump.

Terrorists in Barcelona were planning three explosions

Terrorists, who performed two attacks in Catalonia last week, were initially planning to blow up three shuttle buses in crowded areas in Barcelona, as reported by El Espano.

Lawyer: Maxima wants to earn by reducing compensations for the tragedy

Maxima Latvija and Zolitude 21.11 have reached an agreement on payment of EUR 900,000 to support victims of Zolitude tragedy – EUR 5,000 to EUR 75,000 to each person, as reported by Maxima Latvija.

Producer prices in industry in Latvia grew 0.4% in July

Compared to June, the level of producer prices in Latvian industry rose by 0.4 % in July 2017. The prices of products sold on the domestic market increased by 0.5 %, whereas the prices of exported products grew by 0.3 %.

Enefit: Latvia reduces electricity price difference with neighbouring countries

In recent years, Latvia has managed to reduce the electricity price difference with other Baltic neighbouring countries, as reported by Enefit Chairman Janis Bethers.

Farmers Saeima: butter price will not remain high for long

The high price on butter in Latvia will not remain so high for long, said Farmers Saeima Vice-Chairperson Maira Dzelzkaleja-Burmistre in an interview to 900 seconds programme of LNT.

Aseradens elected as chairman of Unity; Krisjanis Karins to lead party’s city council faction

Unity elected Economy Minister Arvils Aseradens as the new chairman of the party. MEP Krisjanis Karins has been elected as the party’s leader in Riga City Council with Santa Zarane as his deputy.