Latvia's power distribution rates will jump in July

Take note – story published 1 year ago

As of July 1 this year, electricity distribution and transmission tariffs will rise in Latvia, which will affect all users, according to information by the Public Utilities Commission (SPRK) on May 24.

SPRK explained that the impact of new ST tariffs on households will be different. This will depend on connection parameters and consumption:

  • number of connection phases - one-phase (1F) or three-phase (3F) connection;
  • amp load — 16A; 20A; 25A; 32A; 40A or more;
  • the number of kilowatt-hours (kWh) consumed.

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

For apartment or house owners with a 1F connection and consumption of 100 kWh per month, the bill will grow on average by EUR 5-7 (excluding VAT) per month. On the other hand, the increase in electricity bills for private house owners with a 3F connection will be different, which will be affected by the chosen load. FOR 3F connection (16A or 20A), the expected increase in the invoice is around €12-15 (excluding VAT)).

In order to find out exactly the expected changes to the bill, SPRK calls for the use of the ST tariff calculator.

Another change is that all users – households and legal entities – will have access to two types of tariffs: “Basic” and “Special”. The “Basic” tariff is appropriate for users who consume electricity regularly. The “special” tariff is appropriate for those users who have very low or irregular consumption at the site, for example, summer cottages or companies with seasonal commercial characteristics. The transition to the “Basic” tariff for all users will take place automatically from July 1 this year.

If the user wishes to use the “Special” tariff, it can be done on the ST customer portal, or with their electricity trader for the following month.

The ST tariff period is set at 4.5 years.

The electricity transmission tariff will also rise from July 1 but the SPRK statement does not indicate exact figures at the moment. In April, it was estimated that it would rise by 36% on average.

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