Latvian government plans to halve electricity service rate increases

The increase in electricity distribution and transmission rates in Latvia could be about halved compared to the rate planned in the autumn, said the Climate and Energy Minister Raimonds Čudars (New Unity) after a government meeting on Tuesday, January 24.

The sharp increase in tariffs is intended to be reduced and limited by two methods. Firstly, with the non-inclusion of foregone revenue in the rates. The second is linked to a subsidy for the transmission network AST and the distribution network ST. This will require €18 million.

According to the Minister, the development of support measures is at the very beginning of the road, as the corresponding legislative amendments will still be made to enforce the planned changes.

Asked to what extent distribution and transmission rates will increase after the state's involvement in braking, the minister said that could not be predicted at the moment.

The level of the final tariffs will be known when the AST and ST will recalculate and submit them to the Public Utilities Commission following amendments.

The minister said that a sharp increase in distribution and transmission rates should not be allowed, as this would harm both citizens of the country and the competitiveness of the Latvian economy.

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