Gas distribution tariffs also face increase next year in Latvia

Take note – story published 1 year and 5 months ago

Gas distribution system operator AS Gaso has submitted new tariffs to the Public Service Regulator Commission (SPRK), which provides for an increase both for the variable part of the tariffs and for the fixed part, according to the statement in the official publication Latvijas Vēstnesis November 25.

For users consuming up to 2635 kilowatt-hours (kWh) of natural gas per year, the tariff is expected to be increased by 27%, from EUR 18.0761 per megawatt-hour (MWh) without value-added tax (VAT) to EUR 22.9503 per MWh excluding VAT, whereas for users consuming between 2635.1 and 263,450 kWh of natural gas during the year, the tariff is expected to be increased by 20%. For groups using more than that, depending on the consumption, the rise will be anywhere between just 5% and double. The exact percentage and tariffs can be seen on the Gaso website.

Similarly, the variable part of the tariff will increase for users with seasonal consumption of natural gas.

The fixed tariff share for all user groups will grow by 22%.

The proposed tariff change could take effect from January 1, 2023.

The increase in the tariff, as explained by Gaso, is linked to a significant increase in natural gas prices, with increases in inflation and labor costs, as well as a significant drop in the amount of natural gas passed on to users, which has a significant impact on Gaso's performance.

“Gaso” is a subsidiary of AS Latvijas Gāze. The company is the only natural gas distribution system operator in Latvia. The largest shareholders of Latvijas Gāze are Gazprom (34%), Marguerite Gas II. S. a.r.l. '(28.97%), “Uniper Ruhrgas International GmbH” (18.26%) and “Itera Latvija (16%).

As reported earlier by LSM, the electricity distribution tariffs also could rise significantly next year, though the plan has been criticized by officials.

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