Why Latvia Outpaces Neighbors in Electricity Bills 0 9

In the retail market, according to Eurostat, the price level is influenced not only by the situation in the wholesale market but also by national characteristics. In Lithuania, part of the market is still regulated, while in Estonia, there has historically been a higher share of contracts with variable prices, explains Janis Negriibs, director of the energy department of the Public Utilities Commission (PUC).

According to Eurostat data, the average electricity price for households in the European Union in the first half of 2025 was €0.287 per kWh (including taxes and fees), in Latvia it was approximately €0.24, in Estonia about €0.23, and in Lithuania around €0.21. Thus, the electricity price in Latvia is lower in absolute terms than the EU average.

At the same time, Dāvis Skulte, chairman of the board of Elenger, notes that in Latvia, it is slightly higher than in other Baltic countries, mainly due to lower consumption volumes. Given that the purchasing power of Latvians is lower than in neighboring countries, the differences between the Baltic states are particularly noticeable when comparing prices based on purchasing power parity.

The electricity price in the Latvian and Lithuanian zones of the Nord Pool exchange in 2025 is somewhat higher than in Estonia, which, according to Negriibs, is explained by the capacities of interconnectors and the possibilities for cheaper electricity imports that Estonia has. In Estonia, consumers traditionally choose contracts with variable market prices more often, while in Latvia, most households prefer fixed tariffs, which also affects the price difference in the retail market. In Lithuania, some households still receive electricity at regulated tariffs. Therefore, prices in the Baltic countries cannot always be directly compared accurately.

According to the PUC market review, the share of contracts with changing prices out of the total number of electricity sale agreements for households in 2024 and the first two quarters of 2025 fluctuated within one percent, indicating no changes in the trend. In Latvia, the overwhelming majority of consumers still choose fixed-price contracts.