New electricity distribution tariffs in Latvia will be reviewed in December, as representatives of Latvia’s State Chancellery told LETA.
On Wednesday, the 9th of August, Latvian Prime Minister Krišjānis Kariņš met with chairman of the Public Utilities Commission (SPRK) Aldis Ozola, SPRK council member Intars Birziņš and SPRK Energy Department director Jānis Negribs. The meeting was also attended by Minister of Climate and Energy Raimonds Čudars.
During the meeting officials discussed new electricity distribution tariffs and their justifications, SPRK’s view on possible tariff changes, as well as other important topics in the public services sector.
The PM said at the meeting that SPRK stands between the state monopoly and society, defending consumers’ interests in relation to electricity distribution services.
Kariņš said it is unacceptable that it is planned to review tariff plans only after one and a half years. This is why he welcomed SPRK’s commitment to review them as early as December, considering the dynamic market situation and other factors.
The Minister of Climate and Energy reported plans to expand the range of protected users and apply the list to electricity distribution tariffs.
The minister also said that the state will work to ensure that the restoration of the connection capacity after reduction is free of charge.
According to SPRK’s explanation, new distribution tariffs reflect actual electricity power capacity and distribution maintenance costs. This is why residents are invited to review their electricity connection capacity and choose the most appropriate one.
As it is known, after his meeting with Kariņš, Latvia’s President Edgars Rinkēvičs said the new electricity distribution tariffs do not seem proportionate, justified or sensible.
The president believes SPRK does not do its job sufficiently well and the decision about new tariffs needs to be reviewed.
AS it is known, the 1st of July marked the coming into force of new electricity system service tariffs from electricity distribution operator Sadales tīkls (ST) and transmissions system operator JSC Augstsprieguma tīkls (AST).
The effect of new tariffs from ST on households will vary. It will depend on connection parameters and consumption. The cost will also depend on whether there is a single-phase (1F) or three-phase (3F) connection and the type of connection (16A, 20A, 25A, 32A, 40A or more). Electricity consumption will also play a major role.
For apartment owners who have a 1F connection and their consumption is 100 kWh a month, the bill has increased by five to seven euros (excluding VAT). The increase is the same for private house owners with 1F connection and 125 kWh consumption.
In turn, the increase in the electricity bill for owners of private houses with a 3F connection will vary, which will be affected by the selected load. For 3F connection (16A or 20A), the expected increase in the bill is about 12 to 15 euros (excluding VAT), and for 3F connection with 25A and more – about 18 euros and more (excluding VAT).
To find out accurate tariff changes, residents are invited to use ST tariff calculator.
As LETA was told by SPRK representative Ieva Lazdiņa, in accordance with the practice of the Senate of the Supreme Court, when performing the function of regulating and supervising public utilities, the commission should be guided by the principle enshrined in the Law on Regulators of Public Utilities, approved by the Saeima, that the tariff must correspond to economically justified costs.
Lazdiņa stresses that SPRK cannot take the side of the user or public utility provider. The law also does not allow SPRK the reject tariff plans simply because of their excessive growth.
Also read: All Sadales tīkls clients to be automatically switched to Base tariff starting with 1st of July