Latvian electricity prices to soar in 2006

  • 2006-02-01
  • Baltic News Service
Executives at Latvenergo, the state-owned electricity company, said that Latvia would have to pay 30 percent more for imported electricity though household prices would not rise that rapidly.


"There are economic reasons for this on the part of Russia, as well as of Estonia and Lithuania," board chairman Karlis Mikelsons said in an interview to the Latvian daily Latvijas Avize.

"The end price is a cocktail mixed from electric power we buy from Estonia, Lithuania, Russia and power we produce ourselves," he explained. "Plus power from small hydro plants, wind generators and co-generation plants which receive state support."

Speaking about cooperation with Russia, he said that Latvia should understand that prices could not remain unchanged for decades.

"We do work in a common energy system and are a small cog in it, and this maybe puts Russia in a position to apply political dictate as regards to electricity supply, but our cooperation has been appropriate," said Mikelsons.

"We have always fought over prices, but there has been no interruption in deliveries. It is because we depend on Russia and Russia depends on us in a way," he said.

Mikelsons added that household electricity bills were not likely to rise as fast.

Latvenergo board member Uldis Bariss pointed out that raising electricity tariffs from next year was an "inevitable process," but that Latvenergo would do everything to keep tariffs at the present level for this year at least.

He added that it was difficult to predict the size of the expected increase, but the company would take into account the purchase power of its clients, because Latvenergo does not intend to make electricity an exclusive product.

The last time Latvenergo's tariffs were raised was on Jan. 1, 2004, and the next hike, by 6.6 percent on average, is planned for March 1.

Latvenergo generates power at three thermal power stations and three hydro power stations on the Daugava River but has to import part of the electricity from neighboring countries.