By reducing the mandatory procurement component (OIK) from next year, the price of electricity for households and companies will decrease by up to 10%, the Minister of Economics Jānis Vitenbergs (KPV LV) told reporters today after the government meeting.
He said that today at the government meeting an agreement was reached in the coming years to use the dividends of Latvenergo AS, which until now were directed to the budget to solve various problems, to solve energy goals.
“Next year, the price of electricity for both households and businesses will be reduced by up to 10%. At a time when there is a lot of uncertainty and businesses need to compete in difficult conditions, such a reduction in electricity bills will be especially important,” said Wittenberg. As reported, on Tuesday the government supported the proposal of the Ministry of Economics (MoE) to reduce the OIC in 2021 to 17.51 euros per megawatt hour (MWh) instead of the previous 22.68 euros per MWh, thus the OIK would decrease by 23% next year. In 2021, 20 million euros will be allocated from Latvenergo’s dividends to reduce OIK.
In turn, in 2022 it is planned to reduce the OIK rate to 16.38 euros per MWh, while in 2023 it will be 13.25 euros per MWh. Earlier, the State Secretary of the Ministry of Economics Edmunds Valantis told LETA that the ministry had planned a slightly faster reduction of OIK in 2021, reducing it to 16.78 euros per MWh or by 26%.
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