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Friday 23.08.2019 | Name days: Valgudis, Ralfs, Vitālijs

Andrejeva: gas tariffs will not be raised

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Valentina Andrejeva (Valentīna Andrejeva)

The tariffs for heating should be neither raised nor changed until the New Year, the tariff in the sector of gas will not be changed as well.

According to a daily newspaper Diena the head of the Public Utilities Commission Valentina Andrejeva (Valentīna Andrejeva) indicates «The tariff is made as a grid and it is completely dependent on the trading price. Latvian Gas informs about the price of gas every month which changes for the large consumers and industrialists, but with regard to the households – the price changes once in a half-year. We predict that the price that was set in June for the large consumers will not change during the year, it could even be reduced a little.»

The price fluctuations of gas depend on the price of oil and the exchange rate of euro against dollar.  Andrejeva explained that the planned excise tax for gas would increase the price of gas by approximately 3-6% and that they think that it would only improve the situation, if they did not put such a burden on the shoulders of the consumers.

«The aim of the planned excise is budget revenue and the support of the renewable or the so called green energy. It should be clear that the renewable energy covers only the heating, because people at their homes could substitute gas oven with an electrical; however, they are unlikely to choose to change it to a wood-burning stove. There is different situation with the heating, if people could evaluate and select the supplier, which is the most convenient for them – there could be competition.» states Andrejeva.

She considers it not to be right to postpone the excise tax until the year 2014 and then apply the whole of it. She indicates «The fiscal effect that would be gained from the excise tax for gas, could be LVL 3-5 millions this year, which is not much. If it had been done a year ago, noone would have even noticed it. However, now it coincides with the Gazprom raised gas trading price; it is what causes all the nervousness.»

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