Latvian Saeima supports covering MPC costs from state budget

The 14th Saeima passed in the final reading amendments to the Electricity Market Law. These amendments provide for covering the costs of the mandatory procurement component (MPC) from the state budget. This is intended to reduce electricity costs for all end users.
The law amends regulations that make it a duty for Latvian electricity end users to cover the costs caused by MPC payments. The objective of the legislative act is reducing electricity costs for all end users and to start covering related costs from the state budget.

The law states that from now on end users will no longer have to make MPC payments.

The costs generated as part of electricity procured as part of MPC and the costs generated by output components will be covered by the public trader from their revenue. If the costs related to MPC system exceed the revenue received across the period of operations, the amount will be covered from the state budget.
The law will come into force on the 1st of March 2023.