The companies providing heating in eight Latvian cities are prepared for a harsh winter. However, every year, before the heating season, data is collected on those residents who have not paid for heating in the last heating season. The total amount owed by municipalities has been accumulating for several years.
In previous winters Latvia has been close to an energy crisis, especially in 2022. This year, there are still debtors, but there are fewer of them. Last winter was milder and, consequently, there are fewer debts, according to the Latvian Association of Local Governments (LPS).
"They didn't call it by its real name, but we were not far from a crisis. There were also untargeted aids, which actually saved the economy," says Aivo Salmiņš, advisor to the LPS.
Now, however, the amount of debt has fallen or stayed the same, and fuel costs will be cheaper this year, according to the LPS.
The trend is also positive, according to the heating companies interviewed. For example, Rīgas siltums Ltd. responds that Riga residents' payment discipline is stable and has not changed significantly for several heating seasons. The total debt has also not increased.
Liepājas enerģija Ltd also replies that the trend is positive and only a small percentage of customers are late with their payments. Latvian Television received similar answers from Cēsis, Sigulda, Rēzekne and Daugavpils.
The Latvian Association of House Managers and Property Managers admits that it is not normal in Europe to see who owes what every year. In Latvia, these debts follow the owner, but in many places, it is not the person but the property that falls into debt. Then the solution and clearance of the debt can be much quicker, especially when the owner does not pay for heating intentionally.
"Estonians 10 years ago didn't understand what we were mulling here every autumn with our debts. Because, as I said, the bill is issued to the house and is 100% paid," says Ģirts Beikmanis, head of the association.
There is an option to repossess the property. The association has discussed this as a proposal in the Saeima several times, because even now debts accumulate for years, and recovery of funds from a person can backfire in insolvency proceedings. However, there have been counter-arguments that people should not lose their homes, exceptions should be agreed - such as families with children and senior citizens. This proposal has not been taken further.
