More heating aid measures proposed in Latvia

The Ministry of Economics (EM) will move three additional support measures to compensate households for the rise in electricity and heating prices in the near future, said Edijs Šaicāns, deputy State Secretary of the EM for Energy, during the meeting of the Saeima's Sustainable Development Committee September 21.

The first additional measure is the differentiation of district heating aid.

EM offers to maintain the aid already approved – 50% compensation of the price above €68 per MWh and add a compensation of 90% of the part exceeding €150 per MWh. This aid measure would need around €87 million.

The second aid measure directed by EM will be the setting of a ceiling on natural gas prices.

Šaicāns said that the currently regulated natural gas tariff is €107.34 per MWh, while the market price exceeds that threshold. The proposal provides for a ceiling on the price of natural gas of €107.34 per MWh, and the State would compensate traders for the amount above the threshold. This support measure would require an additional €11 million, Šaicāns said.

The third aid measure directed by EM will be compensation for the increase in electricity prices for households.

Šaicāns said te average household consumption is 150 kilowatt-hours (kWh) per month in Latvia, while the majority of households spend around 100 kWh. Consequently, the EM will encourage all households to set a 100 kWh fixed tariff not exceeding EUR 180 per MWh and the State will compensate for the remaining difference at the real price. Šaicāns announced that this aid measure will need €52.5 million during the heating season.

The three support measures for households in the government will be submitted next week.

EM is also working on a fourth aid measure for small and medium-sized enterprises (SMEs), but this will only be possible if the European Commission reviews the aid guidelines and makes them more flexible. Em urges SMEs to set an electricity price threshold of EUR 180 per MWh and in this case, the State would compensate for 50% of the price above the threshold.

 

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