In May, the average electricity exchange price in the Latvian region was 53.54 euros per megawatt hour (MWh), which is 57% more than in the corresponding period last year, according to the market review of JSC Augstsprieguma tīkls.
At the same time, the representatives of Latvenergo AS informed LETA that electricity has increased due to several important factors, including the price of natural gas, economic recovery, increased carbon quota prices, and the hydrological situation influencing prices. more than 85%.
Latvenergo noted that during the past six months, electricity prices (the share of electricity as a component in the bill is about 30% of the total charge) have also increased for all traders by about 30-40%. As price changes are general, more or less changes will affect all electricity users, regardless of the trader or product chosen. Price changes have already been experienced gradually by those customers who use either a plan linked to the exchange price or those who have concluded the current term of the contract at the relevant time and have had to enter into a new term contract, and apply the current price for the next period.
According to the information sent to customers by Latvenergo, which operates under the Elektrum brand, from 1 August the price fixed in the Elektrum Ekonomiskais tariff plan will increase by 42.9% to 0.09595 euros per kilowatt hour (KWh). The company has also determined that from August 1, the fixed price of electricity for customers may be changed no more than twice during a calendar year instead of the previous one.
Representatives of SIA “Tet” also explained to the agency LETA that the service prices for the existing “Tet” fixed price customers have not changed and will not change during the contract period, but what changes will be affected by the time when the previous the price of the contract was fixed once and what it was at that time. “For example, last year the prices of the stock exchange and thus the services were lower than now, while two years ago there was an equivalent price for this year, and given the month of each contract, the new price may be more advantageous for customers,” Tet said. .
Tet representatives also mentioned that in order to respond more effectively to market changes, the company sets the price of electricity in the fixed tariff plan, taking into account the stock exchange price in each particular week. After that, the price of the specific week is fixed for the term of the contract chosen by the customer and remains unchanged during that time. This gives customers a wider choice, because before fixing the price for a longer period, the customer can wait a bit until the offered price is the most suitable for him.
At the same time, the company pointed out that currently more than 70% of the company’s electricity customers have chosen a dynamic or exchange-linked service.
In turn, the representatives of SIA “Enefit” told LETA that the company’s customers who have chosen the “Fixed Price” product are charged a fixed price of electricity for 24 months, thus also guaranteeing that price fluctuations do not affect them. In turn, when concluding a new contract or switching the existing contract to a new term, the price is always determined according to the current wholesale market prices.
Representatives of Enefit said that currently no price increase is expected for new customers, however, fluctuations in electricity prices in the Latvian price area of the Nord Pool exchange affect the offer of all traders, because the market is one and only pricing policy and mark-up differ.
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