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Sunday 18.03.2018 | Name days: Ilona, Adelīna

Swedbank: gas tariff rise to affect majority of households

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Gas tariff increase from July 1, this year, will affect the majority of Latvian households, according to Swedbank Private Financial Institute’s estimates.

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUNatural gas tariff rise will not only affect residents using natural gas daily, for instance, in stoves, water heaters or boilers, but also those people using central heating – heating and hot water. This means that majority of Latvia’s families already have to take into account possible monthly payment increase in the next heating season, says Diāna Krampe, deputy director of Swedbank’s Private Financial Institute.

The natural gas tariff for households using natural gas in stoves has surged by seven santims per cubic meter (from 0.48 to 0.55 lats/m3), while for families using natural gas for heating – by five santims (from 0.29 to 0.34 lats/m3). The increase is mainly linked to amendments to the tax law, revoking the reduced value added tax on natural gas supplies, instead applying the excise tax.

The statistics show that families using natural gas at stoves and water heaters – overall about 386 thousand households – currently pay an average of three lats per month for natural gas. Along with tax hikes, the monthly bill for such households will rise by 44 santims, or 5.28 lats a year. While for households using natural gas for heating – nearly 48 thousand households – and currently paying monthly an average of 62 lats, the bill will grow by around 11 lats a month or 130 lats a year.

However, these are average figures, and in many households the bill for natural gas usage is higher. These families will most affected by the tariff raise, points out Krampe.

The excise tax will also be applied to natural gas, so gas tariffs will increase for heating companies, accordingly boosting the costs of central heating for residents.

According to the Latvian Union of Municipalities’ provided data and forecasts for oil prices on global stock exchanges, the overall rise in heating supply service prices could range between 15 – 17% in the next heating season, including 7 – 9% due to tax changes.

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  1. Ivars says:

    Sutch a stupid decision The unpaid bills will climb up As for me I give up using gas for heating next winter I will use the timber I am collecting every day in the forest and I encourage Latvians to do so.

    Thumb up 0 Thumb down 0

  2. Joyce says:

    Got it! Thanks a lot again for hlepnig me out!

    Thumb up 0 Thumb down 0

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