Energy, Latvia, Legislation

As reported, on September 11, hot water was cut off in 37 Maju serviss KSA buildings, but after partial debt repayment, service has been gradually renewed.

Rigas siltums Commercial Director Voldemars Ilguns told LETA that the bill's due date for August and the debt for previous bills is now about LVL 200,000, but "still no re-payment schedule from Maju serviss KSA.

Ilguns also reported that besides the two buildings managed by Maju serviss KSA, one other building in Riga, managed by another company, has no hot water.

Part of the problem is that Rigas siltums cannot supply heat to individual apartments; it guarantees supply to the building itself. After restructuring the system, it could become possible to serve customers individually, but right now the utility only has contracts with the managers of apartment houses and blocks. A situation is created where when tenants are in debt to Maju serviss KSA, Maju serviss KSA cannot pay Rigas siltums.

In a lengthy open letter, Association of Latvian Apartment House Managers and Administrators Chairman of the Board Girts Beikmanis and Maju serviss KSA Chairperson of the Baiba Plavina sharply criticize the current central hot water supply situation pointing out that Rigas siltums is using its monopoly rights dishonestly, besides the Riga City Council lobby for the managing companies it owns.

The letter states that cutting off hot water for 49 buildings in Riga on September, which affected over 6,000 customers, was illegal and a violation of consumer rights. Residents are not even given the chance to pay up on the fast track with Rigas siltums.

Beikmanis and Plavina state that the problem is long standing – "new managing companies – the result of a monopoly utility's dictated rules, have been forced for years to pay customer debts – including the destitute and people imprisoned and dead."

Rigas siltums Chairman of the Board Aris Zigurs pointed out to LETA that a contract has been signed on supply and that "honest business practice is to fulfill the contract."

"One cannot call a managing company honest who has a contract to buy a product but dodges payment, and instead releases various concoctions on heat supply. We can thank those managing companies, who gather the money and manage to pay," said Zigurs.

He added that "obviously Maju serviss KSA, seeing that it cannot pay, tries to solve its problems by releasing scandalous statements."