Fixed part of electricity system charges could be temporarily reduced for certain households

RIGA - In order to give households the opportunity to adapt to the new tariff structure of the system operator and assess the necessary connection, the fixed component of the system service fee could be reduced by 50 percent for households using a single-phase (1F) connection with a load above 16 amperes (A), according to a draft law prepared by the Ministry of Climate and Energy (KEM) and submitted to ministries for approval.

The fee reduction would apply from September 1 to December 31, 2023. This means that the reduction would appear on the electricity bill from October to January.

According to KEM, this solution would allow a four-month transition period for households with sub-optimal connection capacities, so that these users could make the connection more efficient and reduce its capacity in line with consumption.

At the same time, the amount of the fixed part of the system service charge after the reduction would not be lower than the charge applied to households with 1F and 16A connections, i.e. EUR 6.08 per month excluding value added tax (VAT).

The reduction is not intended to apply to recalculations made in cases of irregularities by users of the system.

The electricity system operator would be fully compensated for the loss of revenue from the system service charge including VAT from the State budget.

As reported, he Public Utilities Commission this past May approved new tariffs of electricity distribution system operator Sadales Tikls and transmission system operator Augstsprieguma Tikls, which entered into force on July 1.

The impact of the new tariffs on households will be different, depending on electricity consumption and connection type, as the Public Utilities Commission told LETA. Electricity bills will increase EUR 5 to EUR 7 for residents in apartment buildings to EUR 12 - EUR 18 and more for private homes, without value added tax.

The Public Utilities Commission advises residents to analyze their consumption habits and connection efficiency to reduce their light bills.