Latvian Prime Minister Krišjānis Kariņš has ordered the Ministry of Economics and Ministry of Finance as shareholders of Augstsprieguma tīkls (AT) and Sadales tīkls (ST) to consider the possibility of adding corrections to the two companies’ prepared service tariff projects.
The PM stresses that electricity costs have a major impact on the growth of the national economy. This is why he has ordered ministries to prepare and submit reports to the government on the possibility of adding corrections to the tariffs. The resolution mentions that ministries have until 20 December to prepare and submit their respective reports.
Additionally, the PM ordered ministries to consider the possibility of waiving the recovery of lost revenue for the period from 2020 to 2022, as well as fixate the electricity price if possible, considering that it forms a portion of the companies’ operational costs. Ministries are to keep in mind the ability of operators to continue performing their duties efficiently after the possible corrections of tariffs.
As previously reported, Sadales tīkls electricity distribution operator plans to increase their tariff by 75%.
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The company’s board chairman Sandis Jansons explained that the company’s costs have increased by EUR 183 million – primarily due to the distribution and electricity price growth. The company is no longer able to accumulate the cost increase. The first half year was completed with losses for the company.
Augstsprieguma tīkls electricity distribution tariffs may increase 4.3 to 4.9 times.
The Public Utilities Commission notes that the company’s tariffs include positions in which reductions are possible, which may help lower the general tariff increase.
Augstsprieguma tīkls is an independent Latvian electricity distribution system operator owned by the state.