The average electricity transmission tariff of the Latvian transmission system operator AS "Augstsprieguma tīkls" (AST) will decrease by 10% from January 1, 2026, however, for households, the costs for electricity transmission will remain unchanged, according to AST's announcement on the Nasdaq Riga exchange, LETA reports.
The Public Utilities Commission (PUC) has approved the AST electricity transmission tariffs for the next three years. The tariff changes will vary for each consumer group.
According to the decision of the PUC board published in the official publication "Latvijas Vēstnesis", for users with a connection to 330-kilovolt (kV) busbars, the electricity transmission tariff will be €0.00139 per kilowatt-hour (kWh), and the transmission capacity service charge will be €6.759 per kilowatt (kW) per year.
For users with a connection at 110 kV lines, the tariff will be €0.00145 per kWh, and the capacity service charge will be €11.376 per kW per year.
For users with a connection at 110 kV, the tariff will be €0.00198 per kWh, and the capacity service charge will be €12.959 per kW per year.
For users with a connection on the 6–20 kV side of the 110/6–20 kV transformer, the transmission tariff will be €0.00251 per kWh, and the capacity service charge will be €14.183 per kW per year.
The capacity charge for electricity producers and electricity storage system operators will be €0.81018 per kW per year.
The company explains that AST has managed to maintain the stability of electricity transmission tariffs despite challenges and ambitious development plans. The integration of the Baltic transmission system with the continental European energy system, as well as the rapid development of renewable resources, has significantly expanded AST's responsibilities and obligations. Furthermore, in light of the geopolitical situation in Latvia, it is important to continue investing in the physical security and cybersecurity of critical infrastructure.
In the coming years, more than 20 new substations will be connected to the transmission system, built with investor funds, increasing their total number by 18%, and AST specialists will ensure their regular maintenance.
AST's operating costs will decrease over the next three years due to lower electricity prices compared to current tariffs. However, due to the new, higher capital return rate approved by the PUC this year, AST's capital costs have increased.
In the next regulatory period — from January 1, 2026, to December 31, 2028 — the PUC has allowed the use of €44 million from accumulated revenues from managing overloads to cover the costs of transmission system services. This is €8 million less than was planned in the submitted AST tariff project.
As noted by the company, AST has managed to maintain the transmission tariff stability in accordance with the initial project while continuing to improve management efficiency and further reduce operating costs.
It was previously reported that in July, AST submitted a tariff project for electricity transmission for the next three years to the PUC for approval.
The submitted AST tariff project stipulated that from January 1, 2026, household expenses for electricity transmission would remain unchanged, while for AST clients — companies with very high consumption directly connected to the transmission network — they would decrease on average by 9%.
The Chairman of the Board of AST, Rolands Irklis, previously explained that long-term stability of the electricity transmission tariff is one of AST's priorities, as it contributes to the electrification of the Latvian economy and the growth of electricity consumption in the country. Irklis emphasized that AST has managed to maintain tariff stability while even achieving a slight reduction in costs.
AST also reported that according to the planned tariff volumes, a decrease of about 1% in transmission service costs is expected in the cost structure of AS "Sadales tīkls", which will positively reflect on the overall bill for electricity consumers. The transmission tariff constitutes a small part of the electricity distribution service tariff, which, in turn, along with the charge for consumed electricity and value-added tax, is a component of the electricity bill.
The audited revenue of the AST group last year amounted to €258.607 million, which is 5.3% more than in 2023, while the group's profit increased 2.2 times to €22.672 million. At the same time, the revenue of the parent company AST decreased by 2.5% to €154.011 million, but the company's profit increased by 31.6% to €14.764 million.
AST is the independent electricity transmission system operator in Latvia. The company is state-owned. The company's bonds are listed on the Nasdaq Riga debt securities list.
AST is the largest shareholder of the single operator of the natural gas transmission and storage system "Conexus Baltic Grid" ("Conexus") — the company owns 68.46% of the shares of "Conexus".
