Translated using ChatGPT service.
In light of the publicly announced plans by AS “Rīgas siltums” to increase the heat energy tariff, Minister of Economics Viktors Valainis emphasizes that, according to data and estimates available to the Ministry of Economics (MoE), there is currently no objective basis for the tariff increase.
“The heat energy production tariffs from Latvenergo are currently the same as at the beginning of the last heating season and even lower than during the coldest winter months, so it is unclear why Rīgas siltums has announced a tariff increase when production tariffs have not changed,” notes Minister of Economics Viktors Valainis.
The Ministry of Economics clearly states that before any decisions are made, full transparency must be ensured, and all possible alternatives evaluated to prevent a price increase. The Ministry expects that both AS “Rīgas siltums” and the regulator will act responsibly and find solutions to protect residents from unjustified cost increases.
“This situation is very important for the residents of Riga. The Ministry of Economics firmly stands against any unjustified increase in the heat energy tariff and additional financial burden being placed on residents,” stresses V. Valainis.
Currently, the heat energy tariff in Riga is set at €77.77 per megawatt-hour (MWh), while the actual costs were €79.82 per MWh. Throughout the heating season, customers paid €74.17 per MWh. The difference between actual costs and the amount paid by customers was €5.65 per MWh, of which €3.60 was an accumulated equalization component from last year’s revenues, and €2.05 were uncovered costs that will be added to the new tariff. According to the new tariff proposal submitted by AS “Rīgas siltums,” the tariff could rise to €88.10 per MWh in autumn, and consumers, considering market price changes, would have to pay €90.15 per MWh, of which €2.05 accounts for the uncovered costs from the previous tariff period.
The Ministry of Economics reminds that the final decision on tariffs lies with the Public Utilities Commission, which will evaluate the submitted justification and calculations.