Latvijas gāze plans to announce natural gas universal service price for households that will come into force in May. The company adds the price of natural gas will be 20-40% lower than it is now.
The company’s representatives explain that from the 1st of May 2023 onward, Latvijas gāze will continue supplying clients with gas in accordance with the universal service, which will be composed in accordance with requirements of the Cabinet of Ministers for Natural Gas Trade and Use, which are planned to be passed on Tuesday, the 4th of March.
The company’s board chairman Aigars Kalvītis said there are more than 360 000 household clients, and the universal service offer is developed in accordance with requirements of the Cabinet of Ministers. Clients are not required to sign new contracts. The natural gas price will be fixed for six months.
«What we can say to our clients now is that the price of natural gas in the universal service will be lower – about 20% to 40% lower depending on user group. After a rapid surge of natural gas prices in August last year, the first three months of 2023 provided a more beneficial situation and a significant price drop. We have access to cheaper natural gas. Its price in Western Europe has dropped to its pre-war price. The drop is mostly due to the lowering gas consumption because of the approaching summer season and larger stores of gas in Europe than previously expected,» said Kalvītis.
The company also notes that if clients stay with Latvijas gāze, they will not have to sign any new contracts. Gas will be supplied as part of the universal service.
The company also stresses that after the 1st of May the fee for gas, like before, will consist of five components – gas price, transmission fee, distribution fee, excise tax and VAT. Natural gas is the only component that will vary between traders.
As previously reported, the 1st of May will mark the opening of the natural gas market for households. This will also mark the end for public traders that offer the service for a regulated price.
The natural gas market in Latvia was opened in 2017. To ensure its gradual opening, household users have had a choice these past several years – continue receiving gas as a connected user from Latvijas gāze at a gas tariff approved by the Public Utilities Commission (SPRK) or purchase gas at a market price from any registered gas trader that provides gas to households.
Until now the only trader that provided natural gas to household users at a market price was Latvenergo under the brand Elektrum.
From May onward Estonian Eesti Gas subsidiary Elenger will start providing this service in Latvia.
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