Aseradens skeptical about possibility to rescind MPC already in March without litigation

RIGA – Outgoing Economics Minister Arvils Aseradens (Unity) is skeptical about a possibility to rescind the system of mandatory procurement component (MPC) in electricity tariffs already this March without litigation.

Arvils Aseradens said that he has signed a resolution to the Economics Ministry so that the ministry starts working on it. "Technically it can be done easily by just deleting three articles from the bill, but there will be legal consequences," he said.

Arvils Aseradens said that the EU has set certain green energy goals – renewable energy resources should reach 40 percent. "If we interrupt the MPC system, it is clear that Latvia will not reach this goal. If we do not reach the goal, the sanctions are applied and we will pay for it," he said.

The minister also pointed at possible litigation investors might start. "Investors might claim compensations. In case of such a scenario the sum may range from EUR 200 million up to even EUR 1 billion," the economics minister said. Analysis international practice, the Economics Ministry came up with a proposal that would allow to avoid litigation.

As reported, on January 10, Saeima issued a statement urging the Economics Ministry to draw up regulations to rescind the mandatory procurement component in electricity tariffs as of March 31 this year, although the outgoing Economics Minister Arvils Aseradens (New Unity) had originally offered to lift the mandatory procurement component in 2022.