According to Latvian state owned electric utility company, Latvenergo, the price of electricity within the country could reduce by 5-7 percent in 2016.
Speaking on the LNT network’s 900 Sekundes show on May 25, Latvenergo CEO Aris Zigurs pointed to the Lithuanian/Swedish NordBalt interconnection as the reason for the predicted drop in price.
NordBalt is a co-operative project between Lithuanian Transmission System Operator LitGrid and its Swedish counterpart, Svenska Kraftnat. It is a high voltage undersea cable, which will run from the Lithuanian coastal town of Klaipeda, to Nybro in Sweden, and will avoid dependence on Russian energy.
Latvia will also be connected to the network, meaning it will receive significantly cheaper energy from Sweden.
Zigurs added that following Latvia’s decision to liberalise its electricity market on January 1 2015, Latvenergo has stopped subsidising household electricity supply to a certain extent.
Following the January 1 liberalisation, electricity prices for households has increased by 15-30 percent.
Zigurs feels the pricing is fair, as it is dictated by the current market.
Irrespective of the price increase, the consumption level of electricity in Latvian households remains the same.