EM: Latvia has enough woodchips for heating season

The amount of woodchips needed for heating is sufficient for this season, Economics Ministry said on August 5.

The Ministry said that in recent weeks, the Minister for Economics Ilze Indriksone has met with the Latvian Association Heating Providers, the Latvian Biomass Association, Latvian Association of Local and Regional Governments, wood production companies, and entrepreneurs to discuss the current situation with the availability of woodchips for the heating season.

"The problem is not with the availability of woodchip resources in Latvia. Several organizations have confirmed to me that the amount of chips is sufficient to provide the amount needed for Latvia during this heating season. [..] It is clear that the main problem now is that the conditions of the proposed agreements are irreconcilable between the two sides.

"In particular, the rapid changes in the energy market and the experience of the previous season with the rapid price increases and contract breaks have led to a situation where the buyer's expectations for lower prices and guarantees provided by the supplier do not coincide with the main wish of the suppliers to see the monthly price indexation in the contract," the Minister of Economics explained the situation.

The Minister pointed out that chips suppliers and heating providers should understand the new market situation, negotiate and be able to agree on appropriate conditions for cooperation so that supplies can be agreed upon and prepared for this heating season.

"It will be crucial to the sustainability and stability of the sector to learn to cooperate in the long term and to conclude contracts for at least two or even three heating seasons. Given the crucial role and impact of energy price increases on the economy and the level of population welfare, it is critical to ensure timely cooperation between all parties involved," the Minister said.

 

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