We can’t automatically put all of the losses Latvijas gāzei (LG) will experience in the second half of 2022 into next year’s tariff, said Latvia’s Minister of Economics Ilze Indriksone in an interview to TV3 on Monday, 1 August.
The minister said current natural gas tariffs will remain clear until the end of the year. Although it has been increased considerably over the past several months, it remains below realistic gas prices.
Indriksone stressed that in this situation, when the confirmed tariff is below actual gas prices, traders may be able to include all of their losses in the next year’s tariff, which will come to force next year. However, the politician in confident it is not possible to automatically include all losses in the next year’s tariff this time, because otherwise residents’ costs may become unbearable.
The minister has informed her colleagues in the government of this situation. A discussion is planned for this topic.
As for possible aid for residents, to help them cover the rapidly growing energy consumption costs, Indriksone was evasive, saying only that it is a topic for Ministry of Welfare to discuss. According to her, it is still planned to pay monthly benefits to the least protected groups of residents. For everyone else, benefits are planned to reach 50% of heating cost growth.
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Ministry of Welfare estimates that 5.7% of households in Latvia will experience problems with paying heating costs.
The Ministry of Economics is working with experts to prepare practical recommendations for residents to help reduce consumption of energy resources.
As for gas supplies, the politician stressed Russia cannot be trusted. This is why she believes Latvia must refuse gas supplies from this country as soon as possible. She admits that companies in Latvia are still allowed to procure gas from Russia until the end of the year, but only as long as supplies are provided and EU sanctions are not breached.