On Thursday, the 21st of September, Latvia’s Saeima passed amendments to the Law on Measures for the Reduction of Exceptional Increase in Energy Resource Prices. These amendments provide for a 60% reduction of Sadales tīkls JSC fixed load payment to households until the end of the year.
The government plans to compile solution proposals for ways to reduce tariff growth in the 2024 heating season.
Amendments proposed by the Budget and Finance Committee also propose limiting the increase of electricity system service tariffs for households.
The reduction of the payment will be applied for the period between the 1st of September and the 31st of December.
The Ministry of Climate and Energy (KEM) predicts that for a household with a single-phase and 16A connection, the fixed component tariff after a 60% reduction will be 2.43 euros (without VAT) instead of the previous 6.08 euros, but for a household with a single-phase and 20A connection, the fee will decrease from the previous 7.6 euros to 3.04 euros. For a household with a three-phase and 25A connection, the payment will be 9.20 euros instead of 23 euros, authors of amendments say.
Funding of 30.47 million euros is needed to afford this support for households. This amount is planned to be secured using dividends from Latvenergo JSC.
KEM representative told the members of the budget committee that the ministry plans to work on medium-term amendments to help further limit service tariffs next year as well.
Chairman of the Budget Committee Jānis Reirs previously said that in order to introduce support in bills for September for residents to receive in October, the committee asked the Saeima to add urgency to amendments.
This is why on the 21st of September amendments were passed in the final reading.
LETA previously reported that on the 19th of September the government supported the proposal to compensate Sadales tīkls’ component tariff growth by 60% starting with September and until the end of December 2023.
KEM notes that the legislative draft was developed the limit the growth of electricity service tariff for households, ensure tariff predictability and a more gradual nature for changes. At the same time work continues on medium-term solutions to limit the system service tariff growth to be adopted in 2024.
It is also reported that the 1st of July 2023 marked the coming into force of new electricity system service tariffs from Sadales tīkls and Augstsprieguma tīkls.
More on this topic here: Latvian government to partially compensate growing electricity tariffs to households