Heating energy tariff in Riga may grow by 16% more

From 1 November onward the heating energy tariff in Riga is planned to be at 66.76 EUR/MWh, which is 16% more than before.
This tariff offer has been submitted by AS Rīgas siltums to the Public Utilities Commission (SPRK).
Tariff increase is related to increased heating energy prices.
The tariff plan provides for increasing heating energy production tariff by 20% and transmission tariff by 8%. Commercial tariff will not change, but the final tariff increase is planned at 16%.
1 September 2021 marked a 26.6% increase of the heating tariff in Riga. Now it is 57.31 EUR/MWh.
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Heating energy producers experienced increased costs this autumn due to increased natural gas prices.
Rīgas siltums is one of the main heating energy suppliers in Riga. The company performs heating energy production, transmission and sale. It also provides management of buildings’ internal heating systems. 77% of the company’s supplied heating energy is used as heating energy for apartment homes and hot water production/ The total length of the heating network is 825 km. 85% of the network is company property.
Rīgas siltums board chairman Normunds Talcis explains the price of natural gas on the exchange has increased dramatically. It has increased tenfold when compared to summer of last year.
Gas prices continue increasing. Prices have reached about 80 EUR/Mwh. This is why there is «no reason to believe the price will go down in the coming months,» admits Talcis. Representatives of the company stress the heating tariff is on a rise for fuel and procured heating energy costs segment, which makes up more than 80% of the tariff.
Rīgas siltums produces only 30% of the heating energy necessary for the heating season in Riga. 70% of heating energy is procured. AS Latvenergo is the main supplier, which produces heating energy from natural gas.
To reduce heating energy tariff and reduce dependence on imported energy resources, Rīgas siltums develops productions of heating energy using wood chips. It is planned to use bio-fuel production technologies in Imanta and Daugavgrīva to reduce the percentage of natural gas in Riga’s heating energy production to 50% and increase the percentage of wood chips to 50%.
Rīgas siltums supplied Riga residents with energy produced independently or procured from independent producers that use renewable energy resources, which are much cheaper, says Rīgas siltums representative Linda Rence.
Rīgas siltums is one of the leading heating energy suppliers in Riga.