Energy support earmarked in Latvia is one of largest in EU - Levits and Karins

RIGA - Expressed as percentage of GDP, the total support earmarked by the government for households and businesses to help them pay their energy bills is one of the largest in the European Union (EU), President Egils Levits told journalists following a meeting with Prime Minister Krisjanis Karins (New Unity) on Wednesday. 

These decisions of the government are extremely important as they ensure sufficient gas supply for heating and provide assistance to those who will find it hard to pay off their heating and electricity bills this winter, Levits said. 

Karins added that by putting caps on energy prices, Latvia has adopted one of the largest support packages in Europe. As a result, energy bills will be smaller both for households and businesses, which will thus be able to stay internationally competitive, the prime minister said. 

In Karins' words, the compensatory measures are supported by entrepreneurs' organizations which took part in working out the energy support package.

As reported, the government on Tuesday  supported amendments to the law on measures for reducing the extraordinary energy price hike, including additional measures for support to households and companies during the upcoming heating season.

The government approved a package of additional energy support for households and businesses worth EUR 425 million.

Households will receive the first 100 kWh a month for a fixed tariff that does not increase EUR 160 per MWh. Meanwhile, legal entities will be compensated 50 percent of electricity price over EUR 160 per MWh. Electricity suppliers will be compensated for the price difference from the state budget.

For households heating their homes with natural gas, gas suppliers will be compensated for the part of the price above EUR 108.75 per MWh.

As regards the proposed price cap and support for heating supply, an agreement has been reached that the government will pay 90 percent of the part of the price that exceeds EUR 150 per megawatt hour (MWh), and compensate 50 percent of price over EUR 68 per MWh for the price up to EUR 150 per MWh.

The support will refer to a time period from October 1, 2022, until April 30, 2023.