Debts of clients of JSC Rīgas siltums exceeds EUR 15 million

Between October and December 2021 the amount of money owed by clients of Riga municipality’s JSC Rīgas siltums for the heating energy supplied this season was slightly above EUR 15 million. Payments collected accounted for 82% of all issued heating service receipts, as reported by Rīgas siltums representative Linda Rence.
She said clients’ payment discipline has not worsened too much. Rence also said the situation with payments and clients’ debts changes almost every day.
«We are grateful to clients who pay for services on time. We understand that the situation is not simple for anyone at the moment – energy prices are up everywhere. We have done what we call to maintain tariffs – procurements, diversification of fuels, reconstruction of old and inefficient heating networks,» explained Rence, adding that the green course is maintained and 50% of heating energy is produced using renewable energy resources.
Rīgas siltums also has plans in the works to help stabilise the heating energy price and help prices become sustainable.
Rence explained that Rīgas siltums produces only 30% of the heating energy in Riga. This is the volume the production of which the company is able to influence. 70% of heating energy is procured from independent heating energy producers, in which JSC Latvenergo is the biggest producer with 70% and other independent producers account for 30% of this energy volume.
The company’s representative also said that Rīgas siltums has borrowed EUR 29 million in short-term loans to be able to pay energy producers for the fuel and heating energy supplied.
In the previous financial year (1 October 2019 – 30 September 2020) Rīgas siltums’ turnover was EUR 151.874 million, which is 2.1% more when compared to a year prior. The company’s profit increased 11.6 time – to EUR 15.6 million, according to information from Firmas.lv.
49% of the company’s capital is owned by Riga City Council, 48.99% by Latvian state, 2% – by LLC Enerģijas risinājumi and JSC Latvenergo owns 0.005% of shares.