Electricity rates to rise in July in Latvia

As of July, new electricity tariffs will come into force, which will significantly increase electricity bills, for households with more powerful connections rising by as much as 157%. Therefore, the “Distribution network” (Sadales tīkls, ST) calls on everyone to assess the effectiveness of their connection and possibly to save by changing it, Latvian Television reported on June 20.

The electricity bill consists of three items: electricity charges, ST tariffs, and VAT. The ST tariff shall consist of a fixed and variable part (charge for the supply of electricity — variable part of the tariff depending on consumption, fee for capacity maintenance — fixed part of the tariff).

The tariff changes will be very individual, depending on the electricity consumed and the connection capacity. The companies responsible for the industry say the average increase for all customers will be about 30%. However, this increase is calculated including legal entities.

For apartments and private houses, these changes will mostly be larger.

For example, an apartment with a single-phase connection with a consumption of approximately 100 kilowatt-hours, has so far paid around €6.5, but will have to pay above €12 in the future. That's an 89% increase.

Another example is an apartment is a three-phase connection with monthly consumption of 150 kilowatt-hours. Expected growth is 122%.

A private house: with a three-phase connection with an average monthly consumption of 125 kilowatt-hours. Growth is assessed from €11 to €28, or around 157%.

The percentage increases will be for households that use more powerful connections. And that is why the Distribution network calls on everyone to assess the effectiveness of their connection, thereby possibly making it possible to save.

“Customers are very different. There are customers with very weak connections, with very low consumption and some who consume much more. It is therefore necessary to find a component that is equally fair to all. The cost of maintaining the connection at equivalent capacity will be the same,” said Kristīne Sarkane, member of the Board of Governors of the Distribution Network.

Moreover, the company's representatives also stress that it is possible to help not only themselves but others by reducing connection capacity. This frees up excess power that could allow someone else to install solar panels, for example.

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