In August 2009, complying with a request submitted by Latvenergo AS, the Public Utilities Commission (PUC) revised the procedure for calculating the mandatory procurement components by changing it to only once a year. On 19 August 2009, with Decision No1/2 the PUC Board decided that the mandatory procurement components will be changed once a year, from 1 April. Thus, the mandatory procurement components did not change on 1 October 2009, but they will be changed on April 1 this year.
The mandatory procurement components is PUC ratified compensation that covers additional Latvenergo AS expenses that arises through purchases from producers who generate electricity from renewable energy resources and those who generate electricity during the cogeneration process at the increased support tariff. Latvenergo AS is obliged to buy electricity at the support tariff or increased price in accordance with the Electricity Market Law and our electricity trading licence issued by the PUC.
Taking the aforementioned factors into account, the PUC has approved the sizes of the new mandatory procurement components.
Mandatory procurement components for end users, i.e. market participants:
- mandatory procurement component buying from producers that generate electricity in cogeneration mode - 0.0094 Ls/kWh;
- mandatory procurement component buying from producers that generate electricity from renewable energy resources – 0.0021 Ls/kWh.
The adopted amendments will increase your the total electricity bill for an electricity market participant company by 3% to 9%, depending on the amount of electricity consumed.
More information about all the components influencing the price of electricity is available at the Latvenergo AS website, as well as in the quarterly Electricity Market Report.
We thank you for your understanding and cooperation to date. We’ll continue to inform you about important changes and news in the future.
Truly yours,
Latvenergo AS
