The main form of aid to reduce electricity bills for residents was the full compensation for electricity distribution costs, which could have cost the state a total of just over €140 million. It reduced the bills by about a third. As the aid period expired on 30 April, electricity bills in May will rise. How much more will be paid depends on many circumstances.
In April, the monthly average price on the exchange was about twice as low as the peak in December. However, the price is still well higher than it was a year ago, and it is very volatile. For example, in the first week of April, the average electricity price was the lowest this year, while in the last week of April it was the highest of the year. The Ministry of Economics (EM) indicated that price fluctuations are expected to continue.
“A lot depends on the geopolitical situation, and prices on the stock exchange for both gas and electricity are changing in relation to every statement that is about events in Ukraine. In fact, we cannot really predict what prices will be in the summer, but it is expected that significant price cuts are not planned in the near future,” said Līga Rozentāle, director of the EM Department for Energy Market and Infrastructure.
Aid to reduce heating and natural gas prices also ended on April 30.
Finance Minister Jānis Reirs called the aid generous to date and pointed out that it was not possible to continue. The next support measures are being prepared by coalition parties for the autumn and will no longer apply to everyone.
“There is a conceptual agreement both on the faster indexation of pensions and on the need to increase aid directly to the low-income population, but here we have talked about targeted aid, so it is still in the negotiation process,” the Finance Minister said.