Heating prices in Riga, as per the Economics Ministry, are deemed unfair or baseless.
In a recent statement, Rīgas siltums, the heat supply company, announced a proposed heat energy tariff of 88.10 euros per MWh, marking a significant increase from the current tariff of EUR 78 per MWh in June this year [1]. This increase comes despite Latvenergo's heat production tariffs remaining unchanged since the beginning of the previous heating season [2].
The Ministry of Economics has expressed concern about potential unjustified cost increases for residents and expects Rīgas siltums and the regulator to act responsibly. However, the Ministry has not specified any particular alternative solutions or actions to ensure transparency [3].
Rīgas siltums explained that the current tariff has increased by 34% since its previous approval, with the most significant increase for heat energy purchased on the right bank of the Daugava [1]. This increase is due to the need to modernize the heating network and improve the efficiency of heat transmission, which requires substantial investments [2].
Latvenergo's heat production tariffs, on the other hand, have remained steady. This could be due to differences in costs or operational factors, possibly owing to different production methods, economies of scale, or regulatory factors that do not immediately impact Rīgas Siltums' distribution costs [2].
The Minister of Economics has questioned why Rīgas siltums announced a tariff increase if Latvenergo's heat production tariffs have not changed. The Ministry's focus remains on protecting residents from cost increases and ensuring full transparency before making decisions [3].
It is essential to evaluate all possible alternatives to prevent price increases and ensure a sustainable and efficient heat supply system. The Ministry has not commented on the current tariff increase by Rīgas siltums but has emphasized the need for responsible actions and transparency [3].
Sources: [1] Rīgas Siltums press release [2] Latvenergo press release [3] Ministry of Economics statement
- The Ministry of Economics, in response to Rīgas Siltums' proposed increase in heat energy tariff, has voiced concerns about potential unjustified cost increases for residents and called for responsible actions and transparency from both Rīgas Siltums and the regulator.
- The Minister of Economics has questioned the discrepancy between Rīgas Siltums' tariff increase and Latvenergo's stable heat production tariffs, expressing a focus on protecting residents from cost hikes and ensuring full transparency.
- With the need to modernize and improve the efficiency of heating networks requiring substantial investments, the Ministry of Economics is emphasizing the importance of evaluating all possible alternatives to prevent price increases and ensure a sustainable and efficient heat supply system.
