Analytics, Energy, Latvia

International Internet Magazine. Baltic States news & analytics Monday, 01.06.2020, 22:31

Subsidized electricity producers' total turnover at EUR 1.21 bn in 2017 - Lursoft

BC, Riga, 13.09.2018.Print version
Subsidized electricity producers' total turnover amounted to EUR 1.21 bn in Latvia last year, according to a Lursoft study informed LETA.

Lursoft reminds that, according to the Economics Ministry's data, there were 348 subsidized electricity producers in Latvia as of January 18, which operated 434 power stations. Of these, 33.87 % used water to produce electricity, 22.81 % were powered by natural gas and 14.29 % by biogas.

According to Lursoft, subsidized electricity producers' total turnover has increased 1.68% since 2015, amounting to EUR 1.21 bn last year. On the other hand, their profit has been growing much faster - last year subsidized electricity producers' total profit after tax increased to EUR 194.37 mln from EUR 149.05 mln in 2016. Power utility Latvenergo alone posted EUR 498.58 mln in turnover and EUR 150.89 mln in profit last year, while Rigas Siltums heat supply company's turnover amounted to EUR 152.32 mln and profit to EUR 7.76 mln. According to the Economics 

Ministry's data, Latvenergo receives subsidies for four power stations and Rigas Siltums for five.

Based on Lursoft's estimates, one-third of all companies that receive state subsidies for electricity they produce are registered in Riga, and their average age is 16 years.

Three Estonia-registered companies, WNDE Solutions OU, Viride OU and Autour Vole OU, each own shares in twelve Latvian subsidized electricity producers. Company INPO 5 that, through a number of other companies, belongs to the family of ex-politician Andris Skele, owns eleven subsidized electricity producers. Armands Zemitis owns six subsidized electricity producers.

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