17 out of 21 co-generation plants have appealed license annulment

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17 out of 21 cogeneration plants, which have had their licenses pulled by the Economics Ministry, have appealed these decisions, said Economics Ministry’s deputy state secretary Janis Patmalnieks at the Saeima national economy, rural, environment and regional policy committee meeting on June 19.

The ministry’s spokeswoman Evita Urpena told LETA that so far the ministry’s decision has been appealed by E Strenci, Elektro Ridzene, Energo Fortis, Madonas Eko, M Parks, Tektus, E Seda, Briedis Buve, Atauga-G, Digne, AM Energy Solution, Baltekogen that runs three plants, Rigas Energija and Pellets Energy.

Among the 40 audited cogeneration plants, four cases are still being inspected, but in 15 cases the ministry decided that the license should not be annulled.

As reported, the Latvian Economics Ministry so far has annulled licenses to a total of 21 renewable resources cogeneration plants.

The Economics Ministry has estimated that in this way it has prevented the total costs of the mandatory purchase component (MPC), which is the part of the electricity price used to subsidize green energy producers, from growing by €334.8 million in the next decade.

Following the reports on possible fraud in several cogeneration plants, the Economics Ministry conducted inspections at several companies and found that they were not generating any power. It's likely the power plants had been turned on just for the necessary 72-hour test period to get their licenses approved.

The Economics Ministry has proposed amendments to the Cabinet of Ministers regulations and increase control over the process.

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