The Economic Commission of the Saeima met on Tuesday to discuss the situation surrounding Rīgas siltums (RS). It was revealed, among other things, that Riga's CHP plants, operating in cogeneration mode, supply preferential energy to the capital's networks – 60% is supplied below the established tariff. So why have prices been raised by more than 12%?
It Would Be Nice If There Were No Winters
In the 2024/2025 season, natural gas prices have significantly decreased. In a presentation, RS reported savings totaling 2.1 million euros. However, as the company claims, "we need to prevent the risk – if the price of gas rises, the prices of independent heat energy producers will also increase." Among these were mentioned… data centers, which, given the enormous power of computers, can transfer excess heat to heating plants. But, of course, the largest share comes from RS's subsidiary – Rīgas BioEnerģija.
Edmunds Cepuritis, a representative of the "Progressives," noted the rising costs for city residents. According to his assessment, the greatest impact comes from expenses for natural gas. He wished for a faster transition to "green" sources, "investments should proceed as quickly as possible." "We would be happy if the CHP did not participate, but there have been no such winter days," representatives of RS said regretfully.
Oddities of Our Town
Jurgis Miezainis, parliamentary secretary of the Ministry of Economics, stated that heating supply in Riga should be viewed "from a competition perspective." He desires for "the market to start functioning, rather than some oddities." Currently, there are "signs of distortion," "risks of dumping."
There should not be excessively cheap heat energy, as implied by the official – because renovations and investments must be carried out. "Political declarations" from local governments cannot influence the price.
Skajdrīte Abrama, who does not belong to any factions, noted that heating prices can still be reduced by attracting "independent producers." "Crisis solutions" are possible. In any case, it is difficult to influence the price of fuel chips, as this resource is used throughout Latvia.
Nine with a Spoon
– The heating market is a complex matter, – stated MP Janis Patmalnex from "New Unity." He would like "independent producers to be profitable."
Andris Kulbergs from the "United List" asked, "What prevented us from solving all this 5 years ago?" – We need to go the modern way, like in Lithuania, – suggested A. Kulbergs to change tariffs once a month. In northern cities like Stockholm and Helsinki, all heating supply is built on electricity production: "It is more profitable to produce two products than one."
Mr. Kulbergs also pointed out that current exchange prices for gas do not imply such a price increase as is actually occurring. He suggested that Latvenergo disclose its pricing (currently, this is a commercial secret!). By the way, there are 9 people serving in the Council and Management of Rīgas siltums for a substantial salary, all with higher education. Why can’t it be done, for example, with three times fewer people? That’s also a secret…
