bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Wednesday 20.03.2019 | Name days: Made, Irbe
LatviaLatvia

Latvian government receives plan for MPC cancellation in 2022

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RULatvian Economy Ministry has submitted to the Cabinet of Ministers Committee a report on solutions for support of electricity producers to allow for the cancellation of the mandatory procurement component from 2022 onward and provide fair support for green energy producers based on market principles.

The ministry claims that the proposed solutions for the cancellation of MPC system were evaluated from ecological and legal aspects, as well as with consideration in regards to the impact on the state budget. «If proposed measures are to be implemented fully, it will help balance public and national economy interest in the medium-term, as well as secure state electrical energy security and help achieve long-standing goals of Latvia’s energy policy,» Economy Ministry explains.

The proposed solutions include the following:

-prevent over-subsidization of all MPC power plants in 2019;

-reduce support for non-commissioned power plants in 2019;

-introduce stricter requirements for biogas stations’ raw materials in 2022;

-cease processing payments from end users to natural gas CHP plants, except for TEC 2 as a strategically important energy plant, in 2022.

At the same time, the ministry also offers a solution for the transition to market principle-based support mechanism for electricity producers. ‘It is important to note that there are currently no plans to provide support for new power plants; the market model will apply to honestly working existing power plants to help achieve the goal for renewable energy,’ adds the ministry.

Together with other involved sides, specialists of the ministry worked in different formats across 2018 to find ways to cancel the MPC system, which has become an uncontrollable burden for households and businesses. This hard work has resulted in a report containing several complex solutions for the cancellation of the MPC system by 2022.

«Inspections organized by Economy Ministry at different MPC plants showed that now is the time to put an end to this system. We have revoked permits for several dozen power plants, thereby preventing a potential cost increase of EUR 391 million,» the ministry explains.

Economy Ministry plans to submit amendments to the Electricity Market Law, which provide for replacing MPC system with a feed-in-premium system starting with 1 January 2022. The solution included in the report provides for the implementation of complex solutions to ensure that starting from 1 January 2022 state support for electricity production is based on market principles and the total support costs for production do not exceed 0.3% of GDP, which is consistent with other countries, especially when compared to Latvia’s 1% of GDP in 2017.

«Subsidized energy producers will have to prove they are able to work in market and fair competition conditions. We do expect objections and that there coordination process may take a long time. We also cannot completely exclude the possibility of legal action, because not everyone is prepared to drop privileges so readily. The planned changes also have to be coordinated with the European Commission. At the same time, I am certain that our proposed plan is the best possible one for the termination of this outdated system,» says Latvian Economy Minister Arvils Ašeradens.


Leave a reply

Latvian minister: we should work with convicts, not isolate them

People who are currently isolated from society in prisons should not be kept isolated – they should be allowed to re-socialize, said Latvian Justice Minister Jānis Bordāns at a press-conference about the study on former inmates’ abilities to re-socialize.

Brexit extension: Theresa May won’t as for more than 50 days

British Prime Minister Theresa May wants only a short Brexit term extension that will not exceed 50 days, as reported by The Guardian.

Business Index: 56.7% of businessmen in Latvia believe government hurt businesses

When asked about the influence Latvia’s government has on the country’s entrepreneurship, 56.6% of interviewed businessmen said the government interferes with the sector, whereas only 7.3% said the government provides assistance, according to results of Turība University’s Business Index.

Moody’s affirms Latvian energy company Latvenergo’s credit rating at Baa2

International credit rating agency Moody’s has affirmed the credit rating of Latvian energy company AS Latvenergo at Baa2 with a stable future outlook, as stated in Latvienergo’s announcement.

Teachers’ protest in Riga gathers 2,000 people

The protest act organized by Latvian teachers outside the Saeima building in Riga gathered approximately 2,000 people, according to Latvian public media.

Latvian Competition Council looks into scandalous «nano-water» case

The Competition Council in Latvia has acquired information regarding the so-called nano-water case, suggesting that municipal public transport company SIA Rīgas satiksme had taken part in a cartel agreement, coordinating an offer of one of the contenders and informing the company in advance of the happenings to ensure their victory in the procurement.

Latvian minister: EU cannot move away from multi-sided trade rules

The European Union cannot afford moving away from multi-sided trade rules, said Latvian Foreign Affairs Minister Edgars Rinkēvičs, participating in a meeting of the General Affairs Council in Brussels.

Latvian Prime Minister says MPC abolishment on 31 March may cost EUR 1 billion

If the mandatory procurement component system is abolished on 31 March, this could cost the country around EUR 1 billion, said Latvian Prime Minister Krišjānis Kariņš in an interview to LTV programme Rīta Panorāma.

Latvian politicians fail to find a way to increase wages for teachers yet again

A day before teachers’ planned protest act Latvian politicians failed to convince Latvian Trade Union of Education and Science Employees about the options to find money to increase wages of teachers this year. With that, teachers intend to go through with the plan to hold a protest on Wednesday, 20 March.

Latvia’s 2020 budget draft sent to the parliament for first viewing

On Tuesday, 19 March, Latvian Saeima’s Budget and Finance Committee conceptually supported this year’s state budget project and decided to submit it to the parliament for its first viewing. The committee decided to submit 14 additional legislative drafts associated with the budget, as reported by Saeima’s press-service.

Minister: Latvia needs representatives in EP the country can be proud of

«Latvian voters should keep in mind that Latvia is represented by only eight members in the European Parliament. It is vital to find candidates we would not be ashamed of. There is no other recipe – if you want to affect the composition of the European Parliament, it is important to remember that results from votes. Nothing will change if we stand on the sidelines,» said Latvian Culture Minister and MEP candidate Dace Melbārde in an interview to BNN.

Rigvir medication distribution in Latvia halted temporarily

Bio-technology company Rigvir has decided to halt distribution of Rigvir medication in Latvia temporarily, as confirmed by Rigvir Group CEO Kristīne Jučkoviča.

Finance commission’s head says Latvia has too many banks for its small market

It is clear there are too many banks for Latvia’s domestic market, said chairman of Finance and Capital Market Commission Pēteris Putniņš in an interview to LTV programme Rīta Panorāma on Tuesday, 19 March.

Latvian residents become more optimistic about government’s work

In one month’s time Latvian residents’ opinion of Prime Minister Krišjānis Kariņš’s government has improved, according to data from SKDS study.

Dutch authorities arrest Utrecht tram shooter

According to Dutch authorities, the man who opened fire in a tram in Utrecht, killing three and injuring five, has been arrested.

Parliament: Latvian universities should be among 500 best in the world

Latvia’s leading universities have a clear vision for the future. It is topical for continued development of the country’s education and science sector.

Latvian minister to request police investigation in public transport company

Latvia’s Environment Protection and Regional Development Ministry has finished its analysis of the audit performed in municipal public transport company SIA Rīgas satiksme. Soon the ministry plans to ask law enforcement institutions to provide their opinion on whether or not there had been fictive employment or other violations committed by the company, as reported by TV3 news.

Latvian prime minister urges sorting the system, not raising taxes

A number of sectors require reforms to avoid raising taxes to increase revenue, said Latvian Prime Minister Krišjānis Kariņš during a meeting of Saeima’s Budget and Finance Committee on Monday, 18 March.

Stoltenberg calls NATO the most successful alliance in world history

NATO is the strongest, most successful alliance in history, wrote NATO’s Secretary General Jens Stoltenberg in an article dedicated to the expansion of the North Atlantic Treaty Organization.

Heavy rainfall in Indonesia causes floods and landslides; death toll reaches 77

Approximately 77 people have been killed in mountain villages hit by floods and landslides caused by intense rainfall in Indonesia’s Papua Province, according to the latest information reported by Indonesian authorities.

Number of job vacancies in Latvia up 33.4% in 2018

In 2018, there were 22.7 thousand job vacancies in Latvia, which is 5.7 thousand vacancies or 33.4 % more than in 2017.

Swedbank: more than 1,400 Latvian families purchased property in regions last year

In 2018, Swedbank had issued more than 1,400 loans for property purchases within 50 km radius around Riga. This is an average of six loans issued every work day, as reported by Swedbank representative Jānis Krops.

Minister: Latvia may require radical image change because of finance sector’s problems

Considering the problems in the country’s finance sector, it will be necessary to work on radically changing the country’s image, says Latvian Foreign Affairs Minister Edgars Rinkēvičs.

Riga Mayor’s wife suspected of dubious employed in public water supply company

For eight years Riga Mayor Nils Ušakovs’ office manager Iveta Strautiņa-Ušakova worked as a consultant for municipal water supply company Rīgas Ūdens, as reported by LTV investigative journalism programme De Facto.

Latvian Centre Party to take part in European Parliament elections

A list of candidates compiled by Centre Party from Latvia has been submitted for European Parliament elections. The list is composed of fifteen candidates. This makes it the fifth list of candidates to be submitted for EP elections in Latvia so far, as reported by Central Election Commission.