bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 23.07.2018 | Name days: Magda, Magone, Mērija
LatviaLatvia

Enefit: Latvia reduces electricity price difference with neighbouring countries

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIn recent years, Latvia has managed to reduce the electricity price difference with other Baltic neighbouring countries, as reported by Enefit Chairman Janis Bethers.

«Although Latvian households still pay the most for electricity, these expenses will continue declining. The price difference with Estonia, which historically has the lowest wholesale prices, has declined nearly twice,» says Bethers.

According to him, analyzing electricity costs in every Baltic state, it is clear that new connections and integration of Baltic electricity market into Scandinavia’s energy market, as well as reviewed tariff structure, has brought a positive result in Latvia.

But the question remains topical if Latvia can create competitive electricity costs without relying solely on electricity price decline, but rather focusing on continued reduction of other components.

«A major decline of electricity costs in Latvia was secured by the reduced price on the wholesale market, which was thanks to last year’s established NordBalt cable between Lithuania and Sweden. This provides cheaper electricity for Latvia and Lithuania and helps equalize price differences with Estonia,» says Bethers.

At the same time, electricity prices on Latvia’s and Lithuania’s open markets have dropped significantly over the course of the past year.

He also notes that neither Latvian nor Lithuanian households have yet to experience any major positive changes. Latvia’s market does not have sufficient competition, which is the main factor for price changes on an open market. Only some households use products using prices tied to the exchange.

Lithuania still has regulated prices. Because of that, households’ electricity expenses are 27% and 20% lower in the comparison with Latvia and Estonia.

«Lithuanian politicians stand before brave decisions, because it is clear that electricity prices included in the regulated tariff does not comply with the actual situation on the market and is heavily subsidized,» adds Enefit manager.

While the fluctuation of electricity prices is a global process, the second half of the price component – connection service – is affected by local decisions and each country’s choices. «This is proven by the fact that all Baltic States have reviewed their transmission system tariffs and have introduced fixed connection fees, which had resulted in immediate changes for electricity bills. Compared with average transmission service costs, Lithuanian households’ payments to their transmissions system operators are the smallest,» Bethers says.

He says it is important to find a solution to reduce MPC pressure on electricity price level and resolve the matter entirely, not keep it divided among different consumer groups.

Ref: 225.109.109.4144


Leave a reply

Nearly 10% of HIV infected in Latvia are youngsters

Latvia is currently the leader among newly uncovered HIV cases in Europe. On top of that, nearly 10% of all HIV infected are youngsters, says public health specialist Baltic HIV Association member Anda Ķīvīte.

In pictures: Large wildfires in Sweden continue

In Sweden, record summer temperatures and weeks without rain have caused series of wildfires across the vast country.

Lursoft: catering sector in Latvia – how much industry leaders earn and pay in taxes

Using a study and compiling data on companies’ business activities for the past three years, Lursoft wanted to find out if it is true catering companies in Latvia work with losses, and what their tax contribution is.

Shooting attack in Canada claims lives

A shooting attack has taken place in Toronto, Canada, with two people having been killed died and 13 others injured.

Farmers in Estonia active in Open Farm Day

Estonian farmers have held their fourth Open Farm Day as over 250 farms in the Baltic country invited everyone interested to experience growing and making of domestic food and agricultural products.

Police commence investigation of an offshore network owned by Lembergs’ daughter

Latvian State Police has commenced an investigation following journalists’ publication of materials about an offshore network owned by suspended Ventspils Mayor Aivars Lembergs’ daughter.

Polish Sejm rushes to change defiant chief Judge of Supreme Court

Poland's legislators have passed rules to hasten the changing of a new Supreme Court chief as part of far-reaching judicial reform that has been criticised by the European Commission among others.

Heat wave to continue in Latvia along with thunderstorms and heavy rain at times

The heat wave active in Latvia will not back off this week – days will remain hot and night-time air temperature will not drop below +20° C. Heavy rain and thunder will be observed nearly every day this week, according to Environment, Geology and Meteorology Centre.

Bulgarian parliament opposes readmission of migrants from EU countries

Bulgarian parliament prohibited the its government from signing bilateral agreements with other European Union member states on readmitting migrants first entered the bloc in Bulgaria.

Week in Lithuania. Liberals ex-leader fails to recover confiscated cash

Eligijus Masiulis, a former Liberal Movement leader on trial in a major political corruption case, has failed to recover cash that was found and seized during searches of his home.

BNN summary of the week: open presidential election in Latvia and no more plastic bags for shoppers

BNN offers a summary of this week’s topical news in a variety of categories: Future; Change; Fight; Decline; Business; Progress.

SRS: cash register reform still stagnates, but has become much faster than it was last year

The cash registers reform continues stagnating. However, it has become much faster than it was a year ago, as reported by State Revenue Service.

Specialists to search for solutions to topical environmental problems in Ventspils

On Friday, 20 July, a meeting was held between Ventspils Commercial Port representatives and specialists from State Environment Service.

Children with functional disorders to receive services financed by EU funds

Child invalids will have access to social services intended to improve their social skills and mobility. More than EUR 4.2 million has been allocated for this goal from the European Social Fund, as confirmed by Latvia’s Central Financing and Contracting Agency.

Producer price level in industry up 4.3% in Latvia

Compared to June 2017, the average level of producer prices in Latvian industry increased by 4.3 % in June 2018. Prices of products sold on the domestic market rose by 4.8 % and those of exported products by 3.7 %.

Total tax debts in Latvia in July – 1.212 billion euros

At the beginning of July total tax debts in Latvia, including outstanding debts, halted debts and debts applied with repayment term extensions, accounted for EUR 1.212 billion, which is 0.8% less than a month prior, according to data from the State Revenue Service.

Survey: every third Latvian resident has received illegal loan offers

Nearly every third resident in Latvia or 31% of respondents admit having received offers to use illegal loan services, as concluded in a survey performed by Latvian Alternative Financial Services Association and SKDS.

Libya opposed to EU's idea to establish migrant centres in North Africa

Libya is against the solution of the European Union to set up migrant centres in the North African country as a means to keep migrants from arriving in the bloc and Libya would not be convinced with financial support, its Prime Minister Fayez al-Sarraj has noted.

Arrest warrant on Catalan ex-President cancelled by Spain

The Supreme Court of Spain cancelled a European arrest warrant for former Catalan regional leader Carles Puigdemont, as Germany refused to extradite him to face accusations of rebellion for declaring the independence of Spain's region, Catalonia in 2017.

Latvian government plans to allow handing expired food to charity

Latvia’s Agriculture Ministry has prepared amendments to the Law on the Supervision of the Handling of Food that provide permission to hand over certain types of food products to charity after the end of their expiry date.

Estonian industrial producer prices up 2.9% since June 2017

Estonian industrial producer price index has risen by 2.9% between June 2017 and the first summer month this year, resulting in an increase of export prices as well, Estonian statisticians have estimated.

Putin urges NATO to quit «irresponsibly» developing ties with Ukraine, Georgia

Russia's President Vladimir Putin cautioned NATO against developing deeper relations with Ukraine and Georgia, evaluating such a policy was irresponsible and would have consequences for the military alliance.

Latvian parliament not in a hurry to support president Vejonis for a second term

Political parties represented in the Saeima are not eager to support President Raimonds Vējonis for his remainder for a second term.

Weather in Latvia will remain warm and even hot at times

Weather in Latvia in the nearest couple of days will be dictated by a cyclone. Because of that the sky will be partially covered by clouds; thunderstorms are also expected, as reported by State Environment, Geology and Meteorology Centre.

Hungary sued in EU Court for criminalising help to illegal immigrants

The European Union's executive body has stated that a law in Hungary that criminalises support for illegal immigrants is in breach with EU law and Hungary has now been referred to the European Court of Justice for the alleged non-compliance.