Budget priorities of the Ministry of Economics – supervision of the energy sector and competitiveness of business

15-11-2019

On 14 November, the Saeima approved the state budget for 2020 in its final reading. The total budget of the Ministry of Economics planned for the next year amounts to 104,821,119 euro. Our budget priorities are the implementation of energy policy, in particular supervision of the mandatory electricity procurement mechanism, significantly reinforcement of the control of operations of power plants, and support to entrepreneurs to strengthen their competitiveness.

 

49,830,962 euro or 47% of the total budget of the Ministry of Economics are intended for the implementation of the energy policy next year, including the maintenance of minimum reserves for state oil products, support for electricity users, implementation of the energy efficiency policy, state research in energy and to the State Construction Control Bureau for administration of energy matters, including for supervision and control of the mandatory electricity procurement mechanism.

 

"In recent years, millions of euros went to dishonest entrepreneurs due the lack of laws, regulations and control mechanisms creating a bad reputation for the whole industry.  This year, we have taken a huge step forward – changes to the regulatory framework have been made, a new supervision mechanism has been created and the budget for supervision the mandatory electricity procurement mechanism has been increased. From 2020, energy matters will be supervised by the State Construction Control Bureau significantly reinforcing the supervision of operations of power plants that has been implemented so far, including systematic on-site inspections in power plants,” emphasises Ralfs Nemiro, the Minister of Economics.

 

From the next year, the State Construction Control Bureau will supervise and control the mandatory electricity procurement mechanism; provide the vulnerable user trading service; administer measures to support energy-intensive companies; ensure the administration of the energy efficiency obligations scheme, administer energy efficiency obligations for large electricity consumers and large enterprises, administer energy efficiency duties, etc.; as well as supervise and control the implementation of transport energy conditions, including with regard to fuel market surveillance, fuel quality monitoring (sampling and testing) and administer the general reporting mechanism.

 

26,978,211 euro or 26% of the total budget of the Ministry of Economics are intended for support to competitiveness of business. “Attracting foreign direct investment, promoting exports, improving the business environment, developing the start-up eco-system and promoting international awareness, the growth of the tourism sector – these will be our main action lines to increase the competitiveness of Latvian businesses on international markets, boost productivity of our companies and attract foreign investment in high and medium-high technologies,” emphasises the Minister.

 

“It is also essential for the country to promote availability of housing to residents, particularly families with children. Therefore, we have found the possibility of allocating 7,026,000 euro to the Development Finance Institution Altum in order to continue the guarantee support programme for families with children for the purchase or construction of housing. At the same time, the Ministry of Economics has started work on the extension of the programme,” emphasises Ralfs Nemiro, the Minister for Economics.

Last update:    28-01-2020