Energy, Latvia, Legislation

"In the Administrative Regional Court's opinion, the existing electricity rates are too low," said Reihmane. "The ruling has mislead the plaintiffs and the public into believing that, since the ruling is in favor of the plaintiffs, tariffs will possibly be reduced, although the court's conclusions are just the contrary," said Reihmane, writes LETA.

Furthermore, the Public Utilities Commission's Decree No. 40 did not confirm the current electricity rates but lifted the previous ones, therefore the court ruling does not cancel the existing electricity rates, added Reihmane.

The court has deemed all tariff changes justified as well as all tariff components, except for the trade service component, which constitutes just 1.3 percent of the tariff, and which, according to the court ruling, needs to be revised, said Reihmane, adding, however, that the Public Utilities Commission disagreed with this part of the ruling too.

As reported, the Administrative Regional Court on June 25 ruled in favor of several private individuals and legal entities claiming that Latvenergo differentiated electricity rates, adopted in February 2011, be lifted.

The court overturned the Public Utilities Commission's Decree No. 40, adopted on February 16, 2011.

According to the current Latvenergo tariffs, households consuming more electricity annually have to pay more. The first 1,200 kilowatt/hours cost 8.25 santims per kWh. When this limit is exceeded, the tariff is 10.74 santims per kWh.