Energy, Estonia, Latvia, Markets and Companies

As VSS production manager Viktors Dudovskis informed LETA, VSS has terminated its contract with Latvenergo due to the electric energy prices, offered by Eesti Energia being significantly lower than those offered by Latvenergo. The change of energy suppliers does not create any technical difficulties or additional costs. "By the end of the year we will have made significant savings," Dudovskis explains.

So far, VSS has signed a one-year contract with Eesti Energia; in case of a successful cooperation it is planned to prolong the contract with a fixed energy cost for another three years.

"Recently, we have been receiving a large number of calls, as many Latvian entrepreneurs are showing interest about the possible cooperation with Eesti Energia," Dudovskis informed.

As reported, the new Latvenergo energy tariffs came into force on April 1, resulting in rising the electricity prices by approximately 37.6%.

The Public Utilities Commission's council accepted Latvenergo's new electricity tariffs on February 20 this year.

According to Latvenergo, the necessity to increase tariffs was dictated by the rise of the cost of imported electricity and the soaring gas prices.

Eesti Energia launched its activity in Latvia last year, after the Latvian energy market was opened on July 2007.