In order for the electricity bill to be as low as possible, it is important to carefully evaluate the needs and consumption habits – the electrical equipment used in the household, the power (load) required for their operation, as well as the amount of consumption. What should I pay attention to in order to find out if there is an opportunity to reduce the monthly electricity bill? The electricity distribution system operator JSC “Sadales tīkls” has prepared four important recommendations.
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Electricity bills basically consist of three parts, the two most important ones being the electricity fee and the electricity supply fee. The third part is value added tax (VAT). Previously, additional costs were also made up of the mandatory procurement component (OMI), but the amendments to the Electricity Market Law approved last December provide that electricity users no longer have to cover the costs of mandatory procurement (this column shows zero in the invoices).
Know the phases and amperage of your electricity connection, as well as the number of kilowatt hours consumed
The fee for electricity is determined by consumption – the number of kilowatt-hours (kWh) consumed and the electricity dealer’s tariff applied to each kWh. The customer chooses both the trader himself and a specific tariff (product) at this trader (the amount of the traders’ tariffs is affected by the price of electricity in the market, but depending on the amount of consumption and habits, a specific electricity tariff may be the most advantageous for each customer).
On the other hand, the fee for electricity supply is determined by the tariffs of electricity transmission and distribution system operators according to the costs of maintaining the electricity supply infrastructure. The amount of this item in the bill is affected by the electricity consumption of each specific customer, as well as the technical parameters of the selected electricity connection, expressed by the number of phases (F) and amperes (A). The higher the capacity chosen, the higher the fee for providing it. It is the same with consumption – the higher the number of kWh supplied, the higher the fee for electricity supply.
The customer can see both the connection parameters and the detailed electricity consumption data by logging in to the “Sadales netas” customer portal. e-st.lv.
Evaluates the offers of electricity traders and their conditions
Proportionally, the largest part of the electricity bill is the charge for the electricity itself, therefore, first of all, it is important to study the household electricity consumption. Hourly consumption data is available to customers both on the customer portals of most merchants and also on the customer portal of “Sadales netas” e-st.lv.
After that, it should be investigated whether the most favorable tariff for the amount of consumption and habits has been chosen at the merchant. There are various options – a fixed fee with different conditions, a tariff tied to the market. A fixed tariff means a specific and constant price for 1 kWh, while a market-linked tariff means that the total charge for electricity is formed depending on its hourly price on the market (“Nord Pool” exchange). When choosing an “exchange tariff”, it is important to follow the price of electricity on the exchange in each individual hour and to consume electricity most actively in those hours when it is relatively cheaper.
It is worth checking the offers and conditions at different merchants from time to time, as they tend to change. When studying the conditions, it is also recommended to pay attention to whether there is a penalty fee for early termination of the contract (if any, how much) and whether there are any additional payments, such as a monthly service fee.
Evaluates the conformity of the electricity connection with the actual needs
The second item in the bill is the charge for electricity supply, and it is divided into two parts – fixed and variable.
Fixed is a fee for providing the connection, and it depends on the connection capacity (load) chosen by the customer. In order not to overpay, it is recommended to choose a connection with technical parameters that do not significantly exceed those required for actual consumption. Customers can see the current connection parameters by logging into the portal e-st.lv (in the “Object Information” section).
In Latvia, the majority of residents use 1F or 3F, 16-20A connection (about 90 percent of the residents of apartments and about 60 percent of private houses). Such connections are suitable for providing all basic daily needs: used lighting, powered washing machine, refrigerator, TV, iron, electric kettle and other appliances.
A more powerful connection may be required in properties that use higher wattage electrical appliances such as an electric hob, heat pump, water pump, air conditioner and others. In most private houses and some of the new multi-apartment projects, 3F connections have been built, which ensures more efficient use of the electrical network.
If the connection is greater than 3F 20A, it is worth evaluating whether such power (load) is not too high for daily needs. The customer can apply for load reduction electronically to the “Distribution Network” in the customer portal, and it is a free service. However, it should be noted that if after some time there might be a need for a larger load, the service for increasing it will be for a fee.
The information available on the homepage of “Sadales netas” can help you calculate the load in a household that corresponds to consumption habits load calculation calculator. You can ask electrical specialists for additional recommendations.
Variable the part of the tariff is the charge for the transmitted kWh, and it directly depends on the household’s monthly consumption. Accordingly, the amount of this fee, as well as the fee for the received electricity, can be influenced by evaluating habits and not wasting electricity unnecessarily.
Simple energy efficiency habits are, for example, turning off the light or TV in a room you are not in, boiling water for just one cup of coffee instead of a full kettle, defrosting the freezer in time, buying energy-efficient household appliances, and so on. More suggestions for improving energy efficiency are available “Elektrum” Energy Efficiency Center website.
Be informed about support for protected electricity users
The government has identified four population groups that are entitled to special support from protected electricity users:
- poor or low-income household (person);
- a family (person) in whose care is a child with a disability;
- a person with disability group 1 or his guardian;
- large family.
From November 1, 2021 to April 30, 2023, taking into account the high increase in electricity prices and the proportionality of the previous amount of support, EUR 15 (for families with many children – EUR 20) support for electricity bills has been set. Starting from May 1, 2023, the support will be in the amount of 5 euros (for families with many children – 10 euros).
Support for these population groups helps to pay for the electricity they need every day. More information about this support is available On the website of the Ministry of Economy.
