Riga hopes for state support to reduce heating cost pressure on residents

Riga’s residents should expect their heating bills to double in the next heating season, said JSC Rīgas Siltums (RS) board member Birute Krūze at a press-conference held on 1 June. Considering the difficulties associated with this situation, the company hopes the state will make decisions to help reduce the burden of heating costs for residents in the next heating season.
As an example she mentioned 50 m2 large apartments. While tenants paid EUR 70 for heating in the previous heating season, now that the gas price has reached 100 EUR/MWh, the heating price for apartments of this size will be close to EUR 145 in the next season.
Krūze reported that RS has submitted an application to the Public Utilities Commission. In it it is planned to increase the heating tariff from 74.08 EUR/MWh to 85.99 EUR/MWh in August.

Outlooks indicate that in the new heating season the tariff may increase to 155 EUR/MWh.

The company’s representatives said at the press-conference they hope for decisions from the state to help reduce costs for residents during the next heating season. They also invited residents to consider ways to reduce heating costs on their own by reducing room temperature by one degree. According to them, this would help reduce heating costs by 5%.
RS board chairman Ilvars Pētersons said it is possible to reduce heating costs by up to 20%. As an example he mentioned replacement of radiators and installation of thermal regulators to reduce heating energy consumption and residents’ heating bills by 20%. It would also help save up energy resources and reduce Latvia’s dependence on Russian gas.
As previously reported, on Tuesday, 31 May, Saeima’s Public Administration and Local Government Committee’s Housing Affairs sub-committee chairperson Regīna Ločmele admitted that many residents will not be able to cover the costs this heating season, so a price ceiling should be set.
According to the financial account from RS for 2020/2021, the company’s turnover was EUR 146.5 million, which is 4% or EUR 5.4 million lower than the year prior.

The company’s profit was EUR 5.4 million, which was 66% or EUR 10.2 million lower when compared to the same period of the year prior.

49% of the company’s capital is owned by Riga City Council, 48.99% by the Latvian state, 2% by LLC Enerģijas risinājumi. Latvenergo owns 0.005% of shares.