RIGA - Officials at Latvijas Gaze have said that they planned to submit a new tariff hike proposal to the Public Utilities Regulatory Commission at the end of the first half of the year.
Latvijas Gaze President Adrians Davis said in an interview with the Dienas Bizness daily that the company would ask for a 30 's 50 percent price increase that would go into effect in 2007.
"I still hope that we will not have to pay such a high price, but it depends on the situation with the fuel market," he said. "The agreement we have with Russia has been signed only for a year. An agreement on the amount of gas deliveries is valid until 2015, but it is planned to sign a new agreement on the price with [Russian gas company] Gazprom in the third quarter of this year."
At the end of 2005, Latvijas Gaze submitted a tariff proposal to the regulator, asking to raise tariffs 26.8 's 43.2 percent starting May 1, 2006. The company explained the new rates were needed due to the rapidly growing prices of oil, oil products and natural gas.
In 2005, Latvia's gas tariffs grew twice 's by 1.5 percent on July 1, and by another 9.7 's 17 percent (depending on volume of gas consumption) from Aug. 1. Gas tariffs were also raised starting Jan. 1 this year by 6.3 's 20 percent.
"I think that starting from 2007 we might have [to pay] the European price minus transit costs," said Davis.
The company last week announced that it posted 12 's 13 million lats (17 's 18 million euros) in net profit on 150-160 million lats of net turnover in 2005.