Latvians in trouble: Heating bills set to get doubled. Find out why

The company JSC "Rigas Siltums", better known as RS, plans to increase the prices for heating from October 2 due to increases in prices for natural gas and imported heating energy. The Public Utilities Division of Riga, known as SPRK, announced on September 1 that they have given the go-ahead for the tariff proposals for Latvenergo TEC1 and TEC2, which will be way above the existing tariffs of RS.

The tariff that RS plans to implement is £170.59, up from the current £85.45 per MWh without VAT. The plan is that after the increase from October 2 this year, the company plans to reduce the rate by a meagre 51 cents from August 1, 2023.

TEC1 and TEC2 supply around 45% of the RS heating energy that is extended to end-customers during the heating season. Apart from privately owned heating producers, who primarily use wood flakes, the balance of heating energy is supplied by RS-controlled units made up of natural gas and biomass (wooden flakes). As a result, Latvenergo has been told to determine the procedure for arriving at a price that takes into consideration the increased prices for natural gas and the costs from private entities. PUK has already approved the price range of gas from £10 to £225 per MWh without VAT. Accordingly, Latvenergo has explained to LETA that the price for natural gas currently stands at £140 per MWh and that in the next heating season, the price will be increased and range between £185 per MWh and £190 per MWh on average.




Latvenergo has provided a comparison of the current prices produced by TEC 1 at £53.49 and TEC 2 at £54.41 per MWh. It has been explained that the new tariff will be based on factors like the price of natural gas, the cost of emission allowances, the cost of reduced energy production by almost half, and the cost of miscellaneous entities in the past heating season.
Due to the war in Ukraine, the prices have reached a level unthinkable to the common man and are hovering at £300 per MWh. Taking this factor into consideration, PUK Chairman Alda Ozola feels the tariff proposed is still lower due to smarter procurement of natural gas.