Latvia's Saeima has voted in favor of amendments to the Energy Law that establish a maximum price for purchasing produced thermal energy, designed to help residents reduce heating bills.
The Saeima of Latvia voted overwhelmingly to amend the Energy Law, with 63 members in favor and only 4 opposed, to introduce a maximum purchase price for thermal energy in response to issues in the Riga heat market. The amendments were proposed by the "New Unity" parliamentary faction and aim to regulate the purchasing process by setting a ceiling price that system operators must adhere to. This legislative update is an effort to provide relief to consumers amid rising energy costs.
The regulator, SPRK, is tasked with determining the maximum purchase price for thermal energy, specifically setting a limit that operators cannot exceed. By the end of June this year, SPRK will establish the maximum price applicable to the Riga area. For other operators across Latvia, the maximum price will be set by June 30, 2028. This strategic move to impose price caps is seen as critical in alleviating the financial burden on residents, particularly with the upcoming heating season in mind.
The Economic Commission, which is responsible for advancing the bill, emphasized the importance of such measures in helping households manage heating expenses effectively. With the uncertainties surrounding energy pricing, these developments signal a proactive approach by Latvian authorities to ensure consumer protection and stability in the energy market. The legislative changes reflect broader concerns about affordability and access to essential services during challenging economic periods.
