Energy, Latvia, Legislation

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Latvenergo: differentiated electricity rates have justified themselves

Alla Petrova, BC, Riga, 29.06.2012.Print version
The decision to differentiate electricity rates depending on consumption and apply lower rates to the first 1,200 kilowatt hours (kWh) has been justified, since approximately a half of household clients did not exceed this amount during the first year, points out the joint-stock power utility Latvenergo.

During the first year of the new Latvenergo rates, from April 1, 2011 to March 31, 2012, Latvian households consumed 1.799 billion kWh, including 863 million kWh (applied the lower rate) and 936 million kWh (applied the basic rate), writes LETA.


Latvenergo board member Uldis Bariss points out that, being aware of the complexity of the current economic situation, the impact of increased electricity rates was reduced to the benefit of the majority of society.


Bariss repeatedly emphasizes that, when setting the current rates, Latvenergo took into account all legal and economic aspects at a time Latvia's economy was experiencing a crisis, and introducing the existing rates was the right solution.


As reported, on June 25, the Administrative Regional Court 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, lifting the previous Latvenergo rates.


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.

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