“75% of Latvian Residents Feel the Pain of High Utility Bills: Tips to Reduce Costs and Choose the Right Financing Options | Bigbank”

At the end of the most expensive heating season since the turn of the century, a large part of Latvian residents evaluates the experience gained, draws conclusions about shortcomings and plans how to reduce utility costs in the future. At least three quarters of the people surveyed by the market research agency Norstat Latvija found that improvements are necessary for their housing or the habits of the residents themselves.

From the results of the research, it follows that the residents identified three main problems that significantly increased costs during the cold part of the year. 23% of respondents faced a hopeless situation – they received large bills for utility services, but it was not possible to change the provider or the type of service, or it was very difficult to do. This problem was especially relevant for residents of Riga and big cities – 28% of respondents pointed to dependence on service providers.

Almost as many people admitted that previously, during the period of relatively cheap energy resources, they were too indifferent to the consumption of electricity and fuel. Lights are often left on in rooms where people do not stay, rooms are ventilated for a long time, or they are heated unnecessarily. The non-pragmatic attitude was recognized by 22% of the respondents, promising to think more about their habits in the future. It is significant that a carefree attitude is characteristic of young people, aged up to 29 years.

21% of the respondents had to establish that the house they live in is not energy-efficient, therefore the saving efforts did not have the expected effect. These people are determined to make improvements so that the next heating season will be less stressful. Another 5% were forced to admit that the building they live in is too old or in too bad a condition, so the improvements will cost inadequately expensive. It would be easier to move to another place of residence. On the other hand, for 4% of respondents, the heating season “opened their eyes” to a fact that they previously did not want to admit. Namely, these people live in much larger dwellings than they actually need, so they have to pay large sums for an essentially uninhabited area.

“The increase in the price of energy resources was painfully felt financially by the majority of the population of Latvia. However, the harsh heating season brought valuable lessons and prompted people to pay attention to things that had been neglected for decades. Among them are the energy efficiency of the home, the selected utilities and the habits of the residents themselves. When you decide to make improvements or change your place of residence and borrow money from a bank for this purpose, the next responsible step is to evaluate the financier very carefully. Due to the high interest rates, an irresponsibly chosen loan will result in several tens of euros in higher monthly payments. Therefore, it would be reasonable to consider as many offers as possible and choose the most advantageous one,” he advises Bigbank Latvian branch manager Edgar Surgoft.

Survey data show that only 21% of Latvian residents were properly prepared for winter or live in an energy-efficient home, so they did not feel the increase in costs too much.

Par Bigbank

Bigbank AS is an Estonian bank that has expanded operations outside of Estonia, establishing branches in Finland, Sweden, Latvia, Lithuania, Bulgaria, as well as offering cross-border services in Austria, Germany and the Netherlands. The company is managed by Martins Lants, a member of the board of the group. Mart Veskimagi, Argo Kiltsman, Ken Kanarik and Ingo Poder also serve on the board.

Bigbank AS