Economics Ministry drafts regulation to compensate households for increased energy prices

• Published date: 03 August 2022
• Publication title: LETA

RIGA, Aug 3 (LETA) - The Economics Ministry has drafted a regulation detailing conditions on which households will be able to receive support to compensate for the steeply rising energy prices, LETA was told at the ministry.

The regulation also provides for supporting households that heat their homes with firewood and wooden briquettes, as well as contain an improved support mechanism for consumers of natural gas.

The government is expected to decide on the proposed regulation at a meeting on August 9. The Saeima is due to vote on the draft document on August 11.

On June 21 this year, the government decided to develop support instruments to compensate households for the increased prices of electricity, gas, heating and woodchip pellets. Since prices of firewood and wood briquettes have been rising rapidly as well, the Economics Ministry included support to households that heat their homes with firewood and wooden briquettes.

The proposed support period would last from May 1, 2022 to April 30, 2023.

The price cap on firewood is proposed at EUR 40 per loose cubic meter, or around EUR 35 per megawatt hour (MWh). Like in the case of woodchip pellets, the Economics Ministry proposes compensating 50 percent of the price increase above EUR 40 per loose cubic meter, but no more than EUR 15 per loose cubic meter. The maximum support per household would be 35 loose cubic meters of firewood. The necessary financing for this support measure would be an estimated EUR 37.5 million.

For woodchip pellets, the price cap might be set at EUR 300 per ton, or roughly EUR 65 per MWh.

Like in other types of support, the state would pay 50 percent of the surcharge of the price of pellets rises above EUR 300 per ton...