Latvian government backs aid measures in energy crisis

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The Latvian government backed the energy crisis aid package at the meeting on January 25. The decision still has to be viewed by the Saeima.

The draft law provides for aid measures that will apply from the beginning of this year until April 30, 2022. It is intended to allocate a total of €250 million. The aim of the law is to mitigate negative socio-economic impact on the welfare of the population and economic growth linked to rising energy prices, the draft law states.

The draft law stipulates that between January 1 and April 30 of the year the following measures will be in force.

Short-term aid:

  •  the State will fully offset the costs of the electricity distribution tariff and mandatory procurement component;
  • a new €50 monthly allowance for each child, including students under the age of 24 who are dependent on their parents or guardians, will be introduced;
  • a new €20 monthly allowance for all seniors and for people with disabilities will be introduced;
  • an increased housing benefit will be paid by the end of this year;
  • compensation for the extreme increase for those with central heating, covering the difference if the price is above EUR 68/MWh;
  • compensation for the extreme increase in gas heating costs if those are above EUR 34/MWh.

Medium-term aid:

  • an aid program of support to households for switching from fossil fuel heating, such as natural gas, to sustainable heating modes and micro-generation capacity, such as solar panels, will be developed and submitted to the government within a period of one month;
  • an information report will be submitted to the government within one month, which will facilitate the acquisition of permits for buildings and plants for the production of renewable energy.
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