On 24 November the Public Utilities Commission (SPRK) approved the mandatory procurement component (MPC) submitted by Enerģijas publiskais tirgotājs LLC (EPT). The MPC plan is set to come to force on 1 January 2023 and the average value will be 0 EUR/MWh.
According to SPRK chairperson Alda Ozola, this result was possible thanks to the high price of electricity, which helped significantly increase EPT revenue from sales of electricity on the energy exchange.
«In 2023 no state budget grants are planned to help compensate the mandatory procurement component. In accordance with SPRK’s decision, users will not have pay for MPC and capacity components any more. This is highly important in a situation when electricity prices are on a rise,» explains SPRK chairperson.
As previously reported, to reduce the negative effect from rising electricity prices, the Cabinet of Ministers supported on 6 September the solution proposed by the Ministry of Economics.
This proposal provides for reducing the average MPC rate to 0 EUR/MWh for the period from 1 September 2022 until 31 December 2025.
Considering the situation in the market, as well as the need to ensure legal clarity in regards to the next year’s estimate for MPC indexes, the amendments approved by SPRK came to force 14 October.
Mandatory procurement component is a state-mandated support mechanism for electricity producers that co-generate electricity or use renewable energy resources. Latvenergo JSC subsidiary Enerģijas publiskais tirgotājs LLC perform the duties of public traders in accordance with the Electricity Market Law.
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