Energy, Latvia, Legislation

The draft tariffs presented by Latvenergo conformed with the methodology provided for in regulations, therefore the regulator had no reason to turn the tariffs down, informs LETA.

According to the new tariffs, households consuming more electricity will have to pay more. The tariffs will be set based on annual electricity consumption, and consumption figures will be registered from April 1. The first 1,200 kilowatt/hours will cost the same as now – 8.25 santims per kWh. When this limit is exceeded, the tariff will be 10.74 santims per kWh.

According to Latvenergo estimates, monthly light bills therefore will increase by about one lat for 30% of households, by LVL 4.36 for 16% of households, and by more than ten lats – for 6% of households. Half of households will not be affected by the new tariffs.

For legal entities, three tariff plans will be offered instead of the current one.

Latvenergo said that families with multiple children would have the basic tariff extended by another 2,400 kWh, whereas indigent families with children will have an extra free 500 kWh of electricity.

Bariss also noted that in 2009, Latvenergo took a socially-responsible decision to put off the tariff increase by two years, taking into account the recession and reducing purchasing capacity in the country at that time.

"Being aware of the consequences of the crisis, also "Latvenergo", as a business enterprise, continues to act with social responsibility by differentiating tariffs. The tariff plan we offer is sparing of all households, because it provides not a linear increase in the tariffs but a threshold of 1,200 kilowatt/hours a year, which will cost all private individuals the same as now – LVL 0.0825 per kilowatt/hour. This means that the tariff plan supports all households in Latvia, including those that consume more than 1,200 kilowatt/hours a year," stressed Bariss.

Latvenergo has been under a lot of criticism recently for its new tariffs, with critics noting that not only the wealthier families consume more electricity but so do large families and families that use boilers and similar appliances.