Latvia plans to introduce heating price ceiling

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It is planned to set price ceilings for central heating, natural gas, and electricity, and it is planned to decide on specific solutions in the forthcoming government meetings, said Saeima deputy Arvils Ašeradens (New Unity) after the coalition meeting on September 19.

He said that the government has worked to reduce the impact of the increase in energy resources so that Latvia has sufficient supplies of natural gas this winter. There are also aid mechanisms for residents in the next heating season. The possibility of setting price ceilings is now being assessed: a specific mechanism is planned for district heating, natural gas and electricity.

Development/For! Saeima deputy Juris Pūce said that the increase in energy resources has been very rapid, affecting exports companies important to the Latvian economy. The European Commission has also started work to limit electricity prices.

For Latvia, it is essential that decisions be taken as soon as possible without waiting for other countries to be regulated, and solutions will be adopted in the near future, the MP said. The Ministry of Economics (EM) will present proposals for the introduction of the mechanism at the forthcoming government meeting, but the final decision is scheduled to be taken at the meeting on September 27.

Minister of Economics Ilze Indriksone (National Alliance) said that EM is following the increase in tariffs, and it appears that the approved heating tariffs are well above forecast. It was previously estimated that the tariff would reach an average of €150 per megawatt hour, but in reality it is much higher and people would not be able to pay their heating bills. Therefore, it is planned to establish a higher state aid intensity. It will be above 50%, but will not reach 100%, the Minister added.

It is also intended to ask local authorities for plans to switch to renewable energy sources.

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