Gaso plans to increase natural gas distribution service tariffs in Latvia next year

Latvian natural gas distribution system operator Gaso has submitted to the Public Utilities Commission (SPRK) its new natural gas distribution service tariff plan, which provides for the increase of the variable and fixed part of tariffs starting with the 1st of January 2024, according to the entry in the Latvian Herald.
For users who consumer up to 2 635 kWh of natural gas a year, the tariff is planned to be increased by 22.4% – from 22.9503 EUR/MWh (without VAT) to 28.0907 EUR/MWh.
At the same time, for users who consume between 2 635.1 and 263 450 kWh of gas a year, the tariff is planned to be increased by 36.9% – to 12.1219 EUR/MWh. For Users who consumer between 263 450.1 and 1 327 788 kWh, the tariff is planned to be increased by 8.5% – to 9.2978 EUR/MWh. For users who consumer between 1 327 788 and 13 277 880 kWh of gas a year, the tariff is planned to be increased by 5.9% – to 6.1972 EUR/MWh. For users who consumer between 13 277 880.1 and 132 778 800 kWh, the tariff is planned to be increased by 2.9% – to 4.0262 EUR/MWh.
Users who consume between 132 778 800.1 and 210 760 000 kWh and users who consume between 210 760 000.1 and 1 353 800 000 kWh of gas are planned to be combined into one group. Their tariff is planned to be set at 2.0085 EUR/MWh.

At the same time, for users who consume more than 1 353 800 000 kWh of natural gas a year, the tariff is planned to be increased by 0.2% to 0.4013 EUR/MWh (without VAT).

The variable portion of the tariff for users with a seasonal natural gas consumption will go up. For others it will go down.
For users who selected a specialised tariff and consume between 2 635.1 and 263 450 kWh of gas every year, the tariff is planned to be reduced by 57.2% to 14.5664 EUR/MWh. For users who consume between 263 450.1 and 1 327 788 kWh of gas a year, the tariff is planned to be reduced by 15.1% to 13.65465 MWh, and for users who consume between 1 327 788.1 and 13 277 880 kWh of gas a year, the tariff is planned to be increased by 22.6% to 8.6319 EUR/MWh.
At the same time, Gaso has also terminated a specialised tariff user group that consumes between 13 277 880.1 and up to or more than 1 353 800 000 kWh of gas, because no such users exist.
At the same time, the fixed portion of the tariff for users with permitted load of up to 6 m3/h will increase by 39.9% from EUR 39.63 a year (without VAT) to EUR 55.44.
For users with a permitted load from 6.1 to 10 m3, the fixed part of the tariff will increase by 35.5% and will be EUR 147.72 per year, for users with a load from 10.1 to 16 m3, the increase is expected to be 32.9% or up to EUR 231.48 per year, while with a load from 16.1 to 25 m3, the tariff will increase to 346.80 euros per year or by 30.5%.
For users with a permitted load from 25.1 to 40 m3, the fixed part of the tariff will increase by 22.1% and will be EUR 482.16 per year, for users with a load from 40.1 to 65 m3 per hour, the tariff is planned to be EUR 808.80 per year or 23.8% more, but for users with a permitted load above 65 m3 per hour, the fixed part of the tariff will increase by 10% and will be EUR 9.48 per year.
When calculating the tariffs of the natural gas distribution system service, Gaso reviewed the structure of differentiated distribution tariffs – the proportion of costs between tariff groups approved in the tariff project was changed, taking into account the decrease in the amount of natural gas transferred to users and changes between tariff groups.
Gaso board chairman Ilze Pētersone-Godmane notes that “it’s no surprise that gas consumption in Latvia is significantly down”. The Central Statistical Bureau of Latvia reported that overall gas consumption in Latvia is down 30% when compared to 2021.
She says that the drop was noticed by Gaso as well – the number of users is down by nearly 16 000 when compared to the end of 2021. Considering the drop in the volume of gas to be supplied to users, it was necessary to add corrections to the tariff structure and balance the tariff relationship between different tariff groups, the company’s board chairperson says.
The design of the changes does not significantly change the existing tariff structure. The tariffs of the distribution system service include a fixed component according to the permitted or declared load of the connection and a variable component according to the volume of natural gas supplied, as well as a seasonal tariff intended for those users who use 85% of the total annual natural gas consumption in the period from May to November.

The new tariff will come into force if SPRK does not decide to withdraw it.

Last year Gaso’s revenue was EUR 52.46 million, which is 11.3% less when compared to 2021. The company also suffered losses worth EUR 1.751 million as opposed to profits the year prior.
Gaso was founded at the end of 2017 as a result of separation of the distribution system from Latvijas gāze and implementation of EU and state requirements on ensuring the independence of the natural gas distribution system. Gaso is the sole gas distribution system operator in Latvia. The company ensures the safety of the natural gas network, technical services and records of natural gas consumption. Gaso is a company important to national security.
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