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Work group not to agree on liquidation of MPC system but work on renewing sector's reputation - expert

BC, Riga, 27.07.2018.Print version
The work group headed by the Economics Ministry and created to work on the scenarios for abolishment of the mandatory purchase component (MPC or a part of the electricity price used to subsidize green energy producers) will not agree on liquidation of MPC but will work on revival of the reputation of the renewable energy sector, said a work group member and energy expert Juris Ozolins, informs LETA.

Economics Minister Arvils Aseradens' (Unity) spokeswoman Agita Baltbarde told that the work group met on July 26, while next week – on August 1 – the work group will adopt its final report with proposals on the future of the MPC system.


She said that the recent meeting discussed several scenarios of the MPC future, but she did not elaborate on the topic.


Ozolins said that the work group has not agreed on any particular solution, discussions will be held also during the last meeting. At the same time, he was confident that the work group will not recommend to abolish the MPC system, but will rather present a number of proposals on its improvement.


The expert said that the work group will not come up with just one solution, but rather with a complex of measures that will renew the reputation of the green energy sector.

Ozolins said that the work group member agree that the green energy should be subsidized also in the future. "Unfortunately, the Economics Ministry now is not hearing the work group's proposals," the expert said.


As reported, the ruling coalition parties have supported the proposal on setting up a high-level work group that will have to prepare an action plan for liquidation of MPC by August 1.

The Cabinet of Ministers has approved the Economics Ministry's proposals for tightening oversight of the energy producers to prevent any MPC-related fraud.


Following the allegations of possible fraud at several cogeneration plants, the Economics Ministry conducted inspections at several companies and found that they were not generating any power. Most probably, the power plants had been turned on just for the necessary 72-hour test period to get their MPC licenses approved. The Latvian Economics Ministry so far has annulled licenses to a total of 21 heat-and power (cogeneration) plants.


MPC is a part of the electricity price used to subsidize green energy producers which, on one hand, has increased the electricity costs for end-users and, on the other hand, has been widely abused by fraudulent energy producers.

 






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