The decision by Sadales tīkls JSC (ST) to increase the tariffs for users that produce electricity using generators or solar panels will halt Latvia’s energy independence course, said energy expert Juris Ozoliņš in an interview to LTV programme Šodienas jautājums [Today’s topic].
He stressed, among other things, that the generator fee in the network is unacceptable. This, according to him, creates unreasonable and unnecessary costs.
Executive director of Latvian Electrical Power Engineers and Builders Association (LEEA) Gunārs Valdmanis mentioned that in this case the company has no other legally justified solution than to request compensation of these additional costs.
Valdmanis agreed that this particular part of the project – the cost increase for those that produce electricity using generators or solar panels – is a failure and is disproportionate. According to him, Augstsprieguma tīkls JSC (AST) and ST should reconsider this part of the tariff.
Valdmanis also explained that businesses are the ones that will be impacted the most in the generator transmission network. For private persons that use those services the costs will be identical to a situation if generators were never used to begin with.
He added it is highly important to make a political decision and pay wider compensation amounts to protect a wide range of consumers.
The energy expert also said discussions as to how best to cover the rising costs of these energy companies should remain open and transparent. In a situation when it is necessary to recover a company’s consumption, the amount should be distributed between network users in a fair manner, he explained.
More on this topic: Electricity transmission tariff in Latvia may increase by average of 75%
Gatis Lazda, board member of renewable energy production company Eveson LLC, previously mentioned that a significant increase of prices would mean ‘punishment’ for households that use state support to install micro-generators, solar panels or wind turbines. This programme is intended to make sure the maximum power output of solar panels and wind generators does not exceed 50% of households’ maximum permitted connection capacity.
In order for households to be able to produce the necessary electricity and save up as much of it as possible for later use, they had to increase their increase the permitted connection capacity. Now these households face the biggest tariff increase, Lazda explais, adding that Sadales tīkls is basically making electricity produced using micro-generators too expensive to use, which may force them to switch from NETO system to a contract with energy traders for the purchase of the produced electricity.
The issue of PIT for small electricity producers will remain unresolved in this case.
ST representatives say that tariff changes in specific situation will depend on the type of connection used and energy consumption. For households that have a monthly consumption of 100 kWh, for example, the change will be between six and eight euros.
«It is important to keep in mind that the transmission and distribution fee amounts to a small portion of clients’ electrical bills. This means the general increase will be much lower,» ST representatives previously explained.
The company mentions that the tariff structure will be changed as well. It will be made simpler and more sustainable. It will also provide clients with the option to choose fixed/variable tariff component ratio to best suit their consumption habits.
It is planned for the new tariff to come into force on 1 July 2023.
Additionally, in order to introduce changes gradually and reduce the general tariff increase, ST has submitted to the Public Utilities Commission proposals for tariff corrections and partial fee increase starting with 1 January 2023.
The company also explains that the planned increase of the electricity transmission tariff, electricity, as well as prices of resources necessary for maintenance and development of the power network accounts for an increase of EUR 183 million of the company’s transmission service costs. This is why the operator has prepared and has submitted to SPRK a new tariff project.