Coalition wants to use Latvenergo profit to reduce green energy bill

The coalition has agreed to reduce the mandatory procurement component in electricity rates by using part of the joint-stock power utility Latvenergo's profit, Economics Minister Arvils Aseradens (Unity) told reporters after the coalition's meeting April 17.

Prime Minister Maris Kucinskis (Greens/Farmers) said that the government would review the matter in a week.

Earlier Aseradens said that residents' payments for the mandatory procurement component would decrease by at least 13% by using part of Latvenergo's 2017 profit, €78.9 million, for the purpose.

The changes could come into force on July 1, the minister said.

The mandatory procurement component is a fundamental macroeconomic mistake that has affected the entire nation, said Aseradens.

The component is the part of the electricity price used to subsidize green energy producers.

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