About 85% of Latvian households purchase electricity from Latvenergo. Starting August 1, the fixed price of the company's electricity tariff “Elektrum Ekonomiskais” will rise by 42.9%, while around half of the company's customers will see a price increase ranging from 40% to 50%.
Tariffs and electricity prices are growing in general, as they are also growing on the electricity exchange. On the other hand, the rise in stock prices is influenced by the volume of renewable and non-renewable energy sources in Scandinavia.
Tet customers will also face price increases. Most of the company's customers, more than 70%, opted for a dynamic tariff and pay at the stock's actual prices. The company's spokeswoman, Laura Jansone, explained the price increases with increased electricity consumption.
She said: “This electricity consumption is linked to both the increase in production and the recovery from the consequences of Covid and, for example, the increase in the price of gas and also to the fact that last winter was relatively cool with low air temperatures when people consumed more electricity than in the winter of last year.”
Meanwhile, the chairman of Enefit, Krists Mertens, said: “There are also a number of major repairs to the major gas pipelines at present. Global LNG supplies are also fairly limited at the moment, and this contributes to a rather rapid increase in prices.”
Mertens believes there is no expected drop in electricity prices in the near term. The Public Utilities Commission (SPRK) has a more positive forecast.
“Natural gas prices are expected to fall anyway soon. Also, several stations in Scandinavia will start work. There were, for example, reconstruction stages right now. As new production capacity appears prices may be expected to fall,” said Alda Ozola, chair of the SPRK Council.
Latvian households will not experience price increases at the same time. The timing of the change depends on the type of tariff chosen by the customer when the contract was concluded and on how long the price is fixed.