Dear customer!
We deem highly our customers, the more so well-informed and satisfied customers, therefore we would like to inform you about important electricity price-related matters.
As it is known electricity price consists of several elements – the cost of using system services or the electrical network, electricity price and the components of compulsory purchase. Components of compulsory purchase is compensation approved by the Public Utilities Commission, covering Latvenergo AS additional expenses due to purchasing electricity from producers, using renewable resources, and from producers who generate electricity in the cogeneration process for the increased subsidized tariff. Purchasing electricity for the subsidized tariff or increased price is an obligation of Latvenergo AS, stipulated by the Electricity Market Law and the electricity trading licence, issued by the Public Utilities Commission.
Being aware of the complicated current economic situation and the negative impact of essential electricity price increase Latvenergo AS requested the Public Utilities Commission to review the calculation procedure for the components of compulsory purchase by amending it only once a year, not twice – in April and October – as it has been up to now. Decision No 1/2 of August 19 by the Public Utilities Commission provides that the components of compulsory purchase will be changed once year, on April 1. Consequently, there will be no increase in the components of compulsory purchase on October 1 this year.
Yours faithfully,
Latvenergo AS
