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Wednesday 23.08.2017 | Name days: Valgudis, Ralfs, Vitālijs

Latvia's electricity market to be liberated this April

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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.


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  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.

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  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?

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    • jj says:

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

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  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…

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  4. JPR says:

    Liberated???? Or maybe HIJACED!

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  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!?

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