The Saeima's Economic, Agricultural, Environmental and Regional Policy Commission supported amendments to the Energy Law that establish a price ceiling for thermal energy. In theory, this should reduce residents' expenses.
Until now, heating supply system operators were not restricted in their purchases and could acquire thermal energy at any price. The amendments aim to put an end to this practice. They provide clear limitations — the purchase price cannot exceed the maximum level set by the Public Utilities Commission.
Such regulation will promote greater transparency, fairer competition, and reduced costs in the centralized heating system. Most importantly, it will help residents lower their bills, according to the Saeima. However, it remains unclear how this will affect the market and market prices.
Parliamentarians paid special attention to the Riga heating market, which constitutes about half of the entire regulated thermal energy market in Latvia. The changes will pertain to the competitive part of thermal energy purchases, which in Riga accounts for about one-fifth of the total volume of supplied heat.
It is planned that by the end of June this year, the Public Utilities Commission will establish the maximum purchase price for thermal energy in Riga. For other operators, the maximum price for thermal energy is expected to be set by June 30, 2028.
This means that the price ceiling for thermal energy in the capital will start to be applied from October 1 of this year.
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