Latvian electricity transmission system operator Sadales tīkls JSC submitted to the Public Utilities Commission (SPRK) a new tariff project, which provides for increasing the electricity transmission tariff by an average of 75%.
Sadales tīkls informs that the planned increase of the electricity transmission tariff, rapid rise in the prices of electricity, as well as the resources necessary for the maintenance and development of the electricity grid comes from the increase of costs worth EUR 183 million this year.
For a typical household – apartment owners with monthly electricity of 100 kWh – the tariff increase, transmission fee included, will be about EUR 6 to EUR 8.
The company also informs that, because the transmission and distribution services account for a small portion of clients’ fee, the general increase of electricity bills will be much lower.
At the same time, it is planned to change the tariff structure and make it simpler and more sustainable, as well as provide clients the choice to pick the appropriate proportion of the fixed – variable tariff component for their consumption habits.
It is planned for the new transmission tariff to come into force on 1 July 2023.
At the same time, in order to implement changes in an organised and gradual manner and thereby reduce the general tariff increase, Sadales tīkls has submitted to SPRK a proposal for tariff corrections and partial increase of fees as of 1 January 2023. Currently Sadales tīkls is waiting for the commission’s conclusions so that it is possible to add improvements to the tariff proposal if necessary.
The distribution system service fee will still be reduced in full for businesses in Latvia up until 30 April 2023.
According to Sadales tīkls, 69% of the costs in the tariff project account for the increased cost of the transmission tariff by 102%: the increase from EUR 71 million to EUR 144 million annually and costs of electricity necessary to ensure technological consumption of electricity transmission from EUR 16 million to EUR 69 million annually.
Inflation has caused the prices of resources important to operations of businesses – lumber, metals, fuel, logistical services – to rise considerably.
Sadales tīkls notes that the cost increase was partially accumulated with previous optimisation activities, including internal reorganisation, digitisation of services, modernisation of specialised equipment, layoffs of nearly 900 employees since 2016, etc.