Reduced heating bills save Riga residents EUR 40 million this season

RIGA - Lower heating energy tariffs and unusually warm weather since last October have enabled Riga residents to save around EUR 40 million, excluding value added tax, representatives of Riga Siltums municipal heating company informed LETA.

The savings were calculated by comparing the invoice amounts with the same period a year ago.

At the same time, Rigas Siltums pointed out that this February is relatively cold and heat consumption could be 21 percent higher on average, while the bills that customers will receive for February, thanks to the lower heating tariff, could increase by only about 2.4 percent compared to February last year, when the average outside air temperature was +1.6 degrees C.

Rigas Siltums pointed out that thanks to the open and free market, the heating tariff is adjusted accordingly as the cost of purchased heat and fuel resources changes. The heating tariff is mainly composed of a variable part - the cost of natural gas, wood chips and the purchased heating.

Rigas Siltums purchases fuel through open tenders and stock exchange auctions, thus the competitive conditions are conducive to obtaining the most advantageous offers, the company points out.

In addition, the company's website rs.lv provides weekly information on the prices of purchased heating and wood chips.

Riga Siltums is also continuously modernizing its infrastructure, using the latest technological solutions and digitizing processes, the company said. This allows to reduce heating losses, increase operational efficiency, contribute to the achievement of environmental objectives and have a positive impact on future heat tariffs, explained Rigas Siltums.

At the same time, Rigas Siltums reminded that the heating bill is influenced by the consumption of heating energy, and the most significant reduction in consumption can be achieved by insulating buildings, as well as by using heating energy rationally in everyday life - each in their own apartment.

Rigas Siltums group turnover in the last financial year, which ran from October 1, 2022 to September 30, 2023, was EUR 442.014 million, while profit was EUR 8.652 million. At the same time, Rigas Siltums' own turnover was EUR 442 million and profit was EUR 1.84 million. Rigas Siltums Group also includes Rigas Bioenergija.

Rigas Siltums is one of the main suppliers of heating energy in Riga. The company's capital is 49 percent owned by the Riga City Council, 48.99 percent by the Latvian state, 2 percent by Energijas Risinajumi. RIX, and Latvenergo holds 0.005 percent of the shares.