Latvia’s unified natural gas transmission and storage operator, AS Conexus Baltic Grid (Conexus), plans to increase natural gas transmission system service tariffs from the 1st of October this year, the company has announced.
Conexus has prepared and submitted a draft tariff proposal for the next five-year regulatory period to the Public Utilities Commission (SPRK). The regulator will now evaluate and approve the proposal, and the tariff structure may still be adjusted during the review process.
The changes are expected to be introduced gradually. The first stage is scheduled for the 1st of October 2026, when the resource-based transmission fee could increase by approximately 7%. From the 1st of October 2027, a transition to a capacity-based tariff model is planned, in line with the methodology for calculating transmission system service tariffs.
According to Conexus, transmission charges account for only 1–6% of a consumer’s total natural gas bill, meaning the impact on end-user payments is expected to be minimal.
The proposal includes adjustments to the fee for using the exit point serving Latvian consumers.
For example, households using natural gas solely for cooking would see their monthly bill increase by around one euro cent. For households using gas heating and consuming approximately 250 cubic metres of gas during winter months, monthly bills could rise by about 0.75 euros. For business customers, the increase is estimated at approximately 0.4%.
Conexus explains that the tariff submission is linked to the expiry of the current regulatory period on the 30th of September, 2026 and the obligation set out in the regulator’s approved tariff methodology to submit a new tariff proposal for the next period.
The company notes that in recent years it has operated the gas transmission system with lower operating costs than those included in the currently approved tariff. However, these savings have not been sufficient to fully offset rapid inflation and wage growth in Latvia. As a result, costs required to ensure the safe, reliable and uninterrupted operation of the transmission network have been reassessed.
The increase in operating costs is mainly driven by the need to maintain infrastructure in proper technical condition,
ensure the availability of materials and spare parts for emergency repairs, and account for projected inflation. The revision of the rate of return on capital, necessary for financing future investments, has also had a significant impact.
“Maintaining a secure and reliable natural gas transmission system remains our top priority,” said Conexus Chief Financial Officer Mārtiņš Gode. “To achieve this, we continuously keep our infrastructure in technical readiness and maintain stocks of repair materials and spare parts to respond quickly and effectively in the event of pipeline damage. This is particularly important in the current geopolitical environment, where the security and resilience of energy infrastructure are of critical importance.”
Gode stressed that fulfilling these responsibilities requires economically justified tariffs that reflect market conditions.
According to Conexus, overall transmission system costs for the next five years are expected to increase by an average of 24%. Nearly 80% of this increase is attributable to a higher rate of return on capital, calculated in accordance with the approved methodology.
From the 1st of October, 2026, the rate will rise from 2.72% to 5.82%.
The current rate of return used in transmission tariffs was established in 2022, when EURIBOR interest rates were still negative. In addition, an efficiency coefficient of 1.45% will continue to be applied during the next regulatory period.
According to information published in the official gazette Latvijas Vēstnesis, the first tariff period will continue under the resource-based model, while from the 1st of October, 2027 a capacity-based tariff will be introduced with a reference price of 3.432 euros per megawatt-hour (MWh) per hour, excluding VAT, representing a 7% increase.
Short-term capacity products would be subject to the following multipliers: 1.1 for quarterly products, 1.25 for monthly products, 1.5 for daily products, and 1.7 for within-day products.
For biomethane injection, a tariff of 0.395 euros per MWh per hour is proposed,
representing a 1% increase. The same short-term capacity multipliers would apply to biomethane injection products.
Tariffs for annual standard capacity, short-term standard capacity, interruptible capacity and interruptible virtual reverse-flow capacity products will remain unchanged during the next regulatory period.
Conexus reported revenue of 74.197 million euros in 2025 and a profit of 23.51 million euros.
The company’s largest shareholder is the state-owned transmission operator Augstsprieguma tīkls, which owns 68.46% of shares. Another 29.06% is held by MM Capital Infrastructure Fund, managed by Japan’s Marubeni Corporation, while the remaining 2.48% belongs to other shareholders.
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