Authority approves Latvenergo's new, much higher tariffs

The Public Utilities Regulatory Commission (SPRK) has approved new thermal energy tariffs for AS Latvenergo plants TEC-1 and TEC-2, which will be several times higher than the existing ones and will affect the prices of Rīga heating supplier Rīgas siltums, newswire LETA reported on September 1.

According to SPRK, taking into account that 88% of the cost of the thermal energy tariff produced is natural gas and that the cost of natural gas is relatively variable, the gas tariffs are set at a price range of EUR 10 to EUR 225 per MWh without value-added tax.

Comparable to the tariff currently in force, Latvenergo has determined that in September this year the price of heating energy produced by TEC-1 is EUR 53.49 per MWh and TEC-2 - EUR 54.41 per MWh.

The increased thermal energy tariff will take effect on October 1. The tariffs have been increased due to “increases in fuel (natural gas) prices, increases in emissions allowances, a reduction of energy produced by almost half, as well as unforeseen costs accumulated during the last heating season”.

"As the war in Ukraine continues, natural gas prices in Europe have reached unprecedented levels at present on the stock exchange prices on certain days above EUR 300 per MWh. Consequently, Latvenergo estimates the average seasonal heating price of EUR 140 per MWh as a relatively successful result of the supply of natural gas,” commented the President of SPRK, Alda Ozola.

SPRK draws attention to the fact that state aid will automatically be applied to households on October 1. This will amount to 50% of the difference between the current thermal energy tariff and the previous heating season at the time.

 

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