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Economics Ministry's amendments on liquidation of mandatory procurement component to be submitted to government at end-March
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    Economics Ministry's amendments on liquidation of mandatory procurement component to be submitted to government at end-March

    RIGA, March 12 (LETA) - The Economics Ministry has drawn up amendments to the Electricity Market Law that stipulate revocation of the mandatory procurement component, and the amendments will be submitted to the Cabinet of Ministers at the end of March, Economics Minister Ralfs Nemiro (KPV LV) told Saeima Economic, Agricultural, Environmental and Regional Policy Committee today.

    Nemiro said that, pursuant to Saeima's decision on liquidation of the mandatory procurement component, the Economics Ministry has discussed the matter with representatives of the Finance Ministry, Public Utilities Commission, power utility Latvenergo, electricity transmission system operator Augstsprieguma Tikls, Latvian Chamber of Commerce and Industry, Latvian Employers' Confederation, and a number of non-governmental organizations.

    The Economics Ministry's current amendments to the Electricity Market Law are now analyzed by legal experts, and the amendments will serve as a basis for other laws and Cabinet of Minister's regulations, added Nemiro.

    Nemiro told the committee that Augstsprieguma Tikls had informed the Economics Ministry that Saeima's decision to rescind the mandatory procurement component as of March 31 could cause electricity prices to increase on the wholesale market. Latvian Renewable Energy Federation said that all power stations with capacity of up to one megawatt would have to halt operations as a result. Nemiro went on to say that, in Latvian Heat Supply Companies Association's opinion, heating rates may increase 20 percent to 40 percent after the mandatory procurement component is lifted. The Public Utilities Commission also pointed out that heating rates could rise.

    At the end of March, the amendments to the Electricity Market Law will be submitted to the Cabinet of Ministers, along with a presentation of possible future solutions as Latvia must also meet the European Union's green energy targets for the country, said Nemiro.

    Nemiro also stressed that the Economics Ministry would implement Saeima's decision on rescinding of the mandatory procurement component and draw up legislation on revocation, not altering, of the component. The amendments will be submitted to the Cabinet of Ministers together with the opinions of all the parties involved.

    As reported, Saeima on January 10 told the Economics Ministry to liquidate the mandatory procurement component as of March 31 this year. The Economics Ministry said that it would have to consult different organizations and institutions before lifting the component.

    • Published: 12.03.2019 16:32
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