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Sunday 22.07.2018 | Name days: Marija, Marika, Marina
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Half of households to pay more for electricity from April

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Baltic news, News from Latvia, BNN-NEWS.COM, BNN-NEWS.RU

Starting from April this year, electricity tariffs will increase for half of Latvia’s households, according to Latvenergo Board Member Uldis Bariss and the Ministry of Economics (ME) State Secretary Juris Pūce.

For 30% of households monthly bills for electricity will surge by one lat on average, while for 20% of households the tariff rise will be even larger.

The tariff growth will depend on the consumption, Latvenergo and ME’s representatives point out. Half of the households will not feel the tariff changes.

Latvenergo’s draft will be assessed by the Public Utilities Regulatory Commission (PURC). The PURC has to inform whether it considers the project as dismissible within 21 days after it is received. If the Regulator does not do it, the tariffs will enter into force. The PURC evaluates whether the tariff plan complies with the approved tariff forming components, excluding the ones for energy.

Tariffs will change for households and businesses purchasing electricity on the open market.

Latvenergo has previously noted the rise in tariffs is influenced by AS Sadales tīkls electricity distribution tariff increase by 20.8% on average starting from April 1, this year. The Regulator’s calculations indicate the end tariffs could spike about 9% to 10% due to changes in distribution system tariffs.

The tariff spike is also determined by other factors, such as the compulsory procurement component set by Latvenergo’s purchases from producers using renewable resources. The electricity tariff for households has remained flat since 2008.

So far, one kilowatt hour (kWh) cost 7.43 santims; however, starting from this year the full value added rate or 22% is applied to electricity; thus, 8.25 santims is to be paid for one kWh.

Previously, the ME told Latvenergo should take into account the low-income population’s purchasing capacity when calculating the final electricity tariff. Earlier Latvenergo promised to do its best in making the changes effect on these households as little as possible.


Leave a reply

  1. Kim says:

    Yet another increase in public utilities fees.

  2. Lily says:

    This is the result of the abolition of the reduced VAT rate.

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