Energy, Financial Services, Latvia, Legislation
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Friday, 29.03.2024, 01:15
Fixed part of mandatory purchase component of electricity price to decrease by 27% in Latvia
The council of the Public Utilities Commission today approved the capacity components that compensates for the costs of the power capacity installed at combined heat-and-power plants, or the fixed part of MPC.
The average value of the approved MPC tariff on a megawatt hour of electricity and capacity component has been cut from EUR 25.79 to EUR 22.68 as of July 1, which will reduce the MPC payment for all groups of energy consumers.
On April 24, the Cabinet of Ministers endorsed the Economics Ministry’s proposal to cut the average MPC tariff and capacity component and the regulator amended regulations on the methodology of the calculation of MPC on May 14.
The new methodology provides for the harmonization of the MPC payments in 3.5 years instead of two years, which makes cutting MPC for all groups of energy consumers regardless of the type of connection possible.
The total MPC payment consists of two parts, where one is a fixed part and the other varies depending on the amount of electricity consumed.