Latvian entity receives compensation for transmission service charges – Baltic News Network

According to the legislative amendments passed by Saima on 30 August, from 1 October onwards, specific support mechanisms for businesses have been adopted to mitigate the negative impact on the national economy of rising prices of energy resources. .

Amendments to the Act on Measures to Suppress Emergency Rise in Energy Prices apply to end-users, which are corporations to which system charges for general households do not apply.

We plan to apply a reduction in energy supply service charges to businesses.

As noted in the bill’s notes, system service charges account for 10% of the cost of electricity bills for corporations.

The system usage fee consists of a fixed fee and a variable fee.

Lost revenues of transmission and distribution companies are compensated from the state budget.

The law stipulates that the support measures will be maintained from 1 October 2022 to 30 April 2023.

support is No Provided to state and local government agencies, as well as sanctioned legal entities.

The law also stipulates a reduction in the portion of Compulsory Procurement Components (MPC) to end-users of electricity between September 1st and December 31st.

The Council of Ministers has been given one month to develop an urgent energy resource price containment plan for households using propane gas to heat their homes.

This support is intended to be paid for the period May 1, 2022 through April 30, 2023.

The amendment will enter into force the day after its publication.

New subsidies for energy-intensive companies of all types in the manufacturing sector to promote market stabilization regarding rising energy resource prices and to maintain the competitiveness of active companies under the current geopolitical situation. Options were introduced and legislative changes were made to mitigate. Consequences caused by the sanctions imposed against Russia for invading Ukraine.

Businesses whose electricity bills account for at least 10% of their total costs and consume more than 500 MWh of electricity annually are eligible for this assistance, the draft legislative authors explained. Latvian entity receives compensation for transmission service charges – Baltic News Network

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