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New natural gas tariffs approved in Latvia; those who use more gas will pay less

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe Public Utilities Commission has approved AS Gaso’s submitted natural gas transmission system’s tariff project, which provides for the introduction of a fixed fee for connection to permitted load regardless of the consumed gas volume.

It is planned that the new tariffs, which will come into force 1 January 2019, will motivate end consumers to use their connection more efficiently. At the same time, new tariffs are meant to secure the company with the option to perform the necessary investments in the gas transmission network.

Major gas consumers to benefit the most

According to estimates from AS Gaso, the price of gas transmission will decline 11% to 52% for most consumers. The price will decline for those who consume more gas.

The total price will, however, increase for ‘zero’ clients – those who are supplied with gas but do not consume it.

Gas bills of households that consume gas to prepare food will grow from 0 to EUR 1.77, tariff authors say.

What fees consumers should watch out for?

Until now gas consumers were differentiated based on their annual consumption without taking into account connection output and efficiency. From now on, differentiation of consumers will also depend on permitted output and the efficiency of connection’s use. «The goal of the transmission operator will be ensuring safe and uninterrupted gas supply, and the new tariff structure will help achieve this goal,» says AS Gaso chairperson Ilze Pētersone-Godmane.

According to the new tariff project, consumers who use gas to power an oven or heat up water or for heating will be applied with a unified and fixed fee in the following categories:

EUR 1.77 a month fixed fee for volume 6 m3/h;

EUR 6.63 a month fixed fee for volumes from 6 to 10 m3/h;

EUR 10.60 a month fixed fee for volumes from 10 to 16 m3/h;

EUR 16.17 a month fixed fee for volumes from 16 to 25 m3/h;

EUR 24.02 a month fixed fee for volumes from 25 to 40 m3/h;

EUR 39.76 a month fixed fee for volumes from 40 to 65 m3/h.

The fixed fee will be calculated for every unit of permitted load for gas consumers whose permitted load is greater than 65 m3/h (such clients form only 0.01% from 1st and 2nd segment) and industrial clients (3rd to 8th segment). Application of a fixed fee is planned to be used in contracts using specific load value.

For example, the fixed fee amount for the largest households will be EUR 6.60 annually for every 1 m3/h, which means consumers whose load volume is 70 m3/h will be applied with a fixed fee of EUR 441 and those whose volume is 80 m3/h – EUR 504, the company explains.

Tariff project calculator is available at www.gaso.lv.

The reasons for the changes

Businesses stress – to guarantee security of gas supplies, the more than 5,200 km long gas transmission network needs to be updated by means of regular investments.

Current tariffs are outdated and no longer meet requirements of the market situation. They also create an unfair situation for gas consumers, because more than 20,500 clients have either ‘zero’ or very low consumption connections. «It will be necessary to update the infrastructure for these empty connections as well,» as mentioned in the company’s statement.

AS Gaso chairperson Ilze Pētersone-Godmane says new tariffs are needed to adapt to the current situation on the market and ensure compliance with gas network security standards through investments in gas transmission network’s maintenance.


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