Latvian gas distribution system operator Gaso JSC has submitted to the Public Utilities Commission (SPRK) new gas distribution service tariffs. The new tariff plan provides for an increase of the fixed and variable part of the tariff.
The announcement was published in the Latvian Herald. Consumers will see an increase of tariffs by 5% depending on their respective consumer gas volume (without VAT). It is entirely possible, however, tariffs may increase 2.1 times.
The variable portion of the tariff will increase in accordance with their seasonal gas consumption volumes. For users who picked a specialised tariff and consume between 2 635.1 to 263 450 kWh of gas every year, tariffs are planned to be tripled – from 11.2379 EUR/MWh to 34.0287 EUR/MWh. Specialised tariffs are available to users whose May-November consumed gas volume is 85% or more of the object’s annual consumed gas volume. Clients with seasonal gas consumption are not applied with the tariff’s fixed portion.
At the same time, the fixed portion of the tariff will increase by 22% for all groups of clients.
The proposed tariff may come into force on 1 January 2023. This increase, according to the official statement, is related to the notable surge of the price on gas, as well as the pressure caused by labour force costs, as well as the considerable drop in the volume of gas to be provided to users. All of this has a serious impact on Gaso’s operational results.
The gas distribution system service tariff consists of the variable and fixed portion. Gaso’s revenue from contracts reached EUR 28.556 million in the first half of 2022. This is 6.9% less when compared to the same period of 2021. The company’s profits dropped by 2.4 times – to EUR 4.242 million.
«In April 2021 the distribution system service tariffs were approved in accordance with the natural gas price outlook that was expected at the time, which was an average of 18 EUR/MWh. Since then, however, prices have increased by up to 1 280%. The natural gas price increase we have experienced this year accounts for the lion’s share of our costs. We are unable to cover it by optimising operations, reducing operational costs or energy austerity measures,» explains Gaso board chairperson Ilze Pētersone-Godmane.
Gaso is a subsidiary of Latvijas gāze JSC. The company is the only natural gas transmission system operator in Latvia. Latvijas gāze’s biggest shareholders include Gazprom (34%), Marguerite Gas II.S.a.r.l. (28,97%), Uniper Ruhrgas International GmbH (18,26%) and Itera Latvija LLC (16%).