Latvian minister: tariffs will not be as high as initially planned

The new electricity transmission and distribution tariffs approved by Augstsprieguma tīkls and Sadales tīkls will not be as high as initially planned, said Latvian Minister of Economics Ilze Indriksone in an interview to LTV programme Rīta panorāma.
This means the total electricity tariffs will not be multiple times higher than the current tariffs, the politician promises.
Indriksone said the Ministry of Economics has plans to meet with both companies to discuss how they reviewed their respective tariff projects.
The ministry offered companies multiple recommendations for potential review positions to help reduce tariffs. For example, the ministry suggests extending the planned tariff period and reevaluate the potential electricity price for a longer period of time.

It is also noted that all potential losses are not required to be put in the tariff from the very start. It is also recommended to consider company employees’ wage increase by 46% suggested for the tariff.

As for the tariffs and their effect on electricity producers in households, an agreement was reached to reduce requirements for connection capacity for solar panel users. This means the cost increase for this client group should not be as high as listed in electricity distribution tariffs.
According to Indriksone, the separation of Sadales tīkls from Latvenergo is on the table. There are many questions about the benefits this solution may bring.
As for the news about Gaso’s gas distribution tariff increase, the minister said the rapid drop in gas consumption increases infrastructure maintenance costs. This is why it is understandable why the tariff change request was submitted. The exact extent will be evaluated by the public utilities regulator.
The minister reminded that there is enough gas for Latvian consumers to last the winter. The minister said officials and institutions have done enough to ensure security of gas supplies next year as well.
Also read: Latvijas gāze warns gas reserves will last until mid-2023