Gas prices set to fall from May

Take note – story published 1 year ago

The Latvijas Gāze (Latvian Gas, LG) company will announce the prices of its universal natural gas service in the next few days for households, which will be effective from May, but has already suggested that the price of natural gas will be some 20-40% lower than at present.

The representatives of LG told the LETA news agency that from May 1, 2023, when the natural gas market is fully opened, LG will continue to provide customers with natural gas supply at the market price.

The chairman of the company's board, former Prime Minister Aigars Kalvītis, said the company currently has more than 360,000 household customers and the universal service offer has been developed in accordance with the new regulations of the Cabinet of Ministers. It is expected that customers will not have to change their contracts, while the price of natural gas will be fixed for six months.

"What we can tell our customers right now is that the price of natural gas for the universal service will be lower – in the range of 20% to 40%, depending on the user group, compared to the currently regulated tariff. After the rapid increase in natural gas prices in August of last year, the first three months of this year marked a more favorable market situation and a significant drop in prices. At the moment, we can buy natural gas cheaper, its price on the Western European exchange has dropped to the pre-war price, which is affected by the decrease in natural gas consumption as the summer season approaches, and much larger natural gas stocks in Europe than expected," said Kalvītis.

On May 1, the natural gas market for households will be fully opened and the public trader that offers the service at a regulated price will no longer exist.

The natural gas market in Latvia was opened in 2017, but in order to ensure its gradual opening, household users have had a choice in recent years - to continue receiving natural gas as a connected user from LG at a natural gas tariff approved by the Public Service Regulatory Commission (PSRK) or to purchase natural gas at the market or unregulated price from other merchants registered in the register of natural gas traders.

The market is set to become more competitive from May with the entrance of Estonian company Elenger, as previously reported.

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