On Thursday, the 14th of September, Saeima deputies decided to submit the plan composed by the Combined List (AS) to reduce electricity tariffs to the parliament’s Economic, Agricultural, Environmental and Regional Policy Committee for review.
The proposal was prepared after consulting with all involved sides.
AS notes that households are growing unable to cover the rapidly growing electricity bills, which will push more than 400 000 Latvian residents towards the risk of poverty.
The party believes it is important to immediately provide support to residents in the winter season, when the biggest cost increase is expected to hit.
In parallel to that it is necessary to develop long-term solutions to ensure balanced and reasonable tariffs.
Saeima deputy Andris Kulbergs explains that “such massive reforms should have a transition period and mechanisms to soften consequences of changes”.
“On top of that, the problem needs to be resolved at its core – tariffs need reducing,” stressed Kulbergs.
AS has developed an action plan that includes eight points in total. The party explains the offer was developed to reduce electricity transmission tariffs by 40%.
AS proposes preparing regulations to ensure the electricity transmission tariff-related support is provided to all Latvian households between the 1st of October 2023 and 1st of April 2024, reducing Sadales tīkls tariffs by 50% and covering related costs from Latvenergo’s excessive profits.
The proposal suggests the development of a special protected user tariff method by the 1st of December 2023, as well as expand the range of protected users, including into this group all residents at risk of energy poverty. Additionally, the action plan suggests coming up with a solution for micro-generation (solar panels) clients with increased connection fee, because people relied on certain state guaranteed long-term rules when performing investments.
The legislative draft suggests developing by the end of October amendments to the Energy Law, providing profit restrictions for assets held by Augstsprieguma tīkls and Sadales tīkls.
In six months’ time it is planned to perform activities to reduce tariffs.
AS believes that merging Augstsprieguma tīkls and Sadales tīkls would provide cost reduction and would allow a more efficient use of resources to develop the network. At the same time, it is necessary to assess by December the options of both service providers’ tariff equalisation opportunities for electricity producers and consumers to reduce the general tariff burden for consumers.
AS also proposes for the Cabinet of Ministers to ensure Latvenergo, Augstsprieguma tīkls and Sadales tīkls use dividends to increase energy efficiency of the system when putting together with budget project.
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