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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 08:17

Businessman: production in Latvia becoming unprofitable due to high mandatory procurement component

BC, Riga, 27.05.2015.Print version
The high electricity tariffs caused by the mandatory procurement component (MPC) have become a problem for all business owners, and for a lot of them production in Latvia is becoming unprofitable, this according to Janis Vilnitis, owner of the joint-stock paper producer Liepajas papirs, in an interview with "Rietumu radio", cites LETA.

"All of us are worried that Liepajas metalurgs wants to lay off half of its staff, while Broceni has a similar situation with regard to Cemex, who currently finds it cheaper to produce cement in Poland, without having to pay millions for the MPC here. This could mean reduction of staff, and such case of scenario is very plausible," said Vilnitis.

 

He indicated that the high MPC costs are an urgent problem for all producers. For example, Liepajas papirs pays EUR 50,000 for the MPC every year.

 

The government should first find a solution for the large MPC payers, however, there is no decision from the Cabinet of Minister yet, furthermore, it will have to coordinated with the European Commission, said Vilnitis, indicating that this process is not "fast".






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