The Public Utilities Commission (PUC) on Thursday approved the water supply service rate project presented by SIA "Rīgas ūdens", which provides for a 14% rate increase starting December 1 of this year, according to a statement from "Rīgas ūdens" published on the Nasdaq Riga exchange.
The increase in the rate by €0.33 per cubic meter is necessary for the restoration and maintenance of water supply and sewage networks, a significant part of which has already exceeded its planned service life, the company notes.
From December 1, the water supply rate in Riga is set at €2.67 per cubic meter. It will consist of a water charge of €1.41 per cubic meter and a sewage charge of €1.26 per cubic meter.
The rate increase is expected to raise monthly expenses by €2.60 for a family in an apartment building. According to the company, this amounts to less than 1% of the average family income.
The current water supply rate in Riga is €2.34 per cubic meter, excluding value-added tax, which consists of a water supply rate of €1.28 per cubic meter and a sewage rate of €1.06 per cubic meter.
According to the company, the current rate no longer covers the costs of updating the city's water supply and sewage network. Currently, 35% of sewage and 29% of water pipelines in Riga have exceeded their design service life. As a result, the number of accidents and costs for emergency recovery work are significantly increasing each year, leading to the decision to raise the water utility service rates.
The funds obtained from the rate increase will be directed towards the renovation of urban networks, allowing "Rīgas ūdens" to update at least 90 kilometers of water supply and 55 kilometers of sewage networks by 2030. This will "significantly reduce water losses and the risk of accidents, and thus expenses for residents."
The turnover of "Rīgas ūdens" last year was €76.336 million, which is 0.1% less than in 2023. According to the information published by the company, due to asset revaluation, the company operated at a loss of €18.275 million compared to a profit in 2023.
"Rīgas ūdens" provides urban water supply services in Riga and in several territories of the Riga district – the municipalities of Ādaži, Ropaži, Mārupe, and Ķekava, as well as services for the collection and treatment of wastewater. The sole owner of the enterprise is the Riga municipality.
