High energy prices force Latvian government to consider providing aid to residents

Due to high energy prices, Latvia’s government should consider additional solutions to provide support to residents, said Minister of Environment Protection and Regional Development Artūrs Toms Plešs in his interview to TV3 on Thursday, 13 January.
The situation is very serious, said Plešs, adding that the government has already made steps to help reduce electricity bills and provide support to residents with high heating energy costs.
Prime Minister Krišjānis Kariņš stresses the state has provided multiple support mechanisms specifically for the situation with rising energy prices: vaccinated pensioners are provided with a monthly benefit of EUR 20 during the winter season, the mandatory procurement component rate is reduced, electricity transmission tariff is cut in half, support provided to protected electricity consumers is increased. The state has also increased housing benefits.
However, of all the aforementioned support measures only housing benefits have a direct effect on heating bills.
The minister added his political party Attīstībai/Par! proposes thinking about expanding the range of housing benefit recipients.
According to the information available to the minister, a discussion involving representatives of the Latvian Local Governments Association, Ministry of Economy and Ministry of Welfare is planned for 14 January. Different support mechanisms will be discussed.
Previously opposition politicians submitted a proposal to reduce VAT for electricity. However, politicians of the ruling coalition voted against this proposal last December.