New electricity transmission users, when installing a new high-capacity connection, will receive a discount

On Thursday, April 11, the Saeima supported the amendments to the Electricity Market Law prepared by the Ministry of Climate and Energy (KEM). With these changes, electricity consumers who install a new high-capacity connection to the electricity transmission network will receive a discount on the transmission service tariff. The discount will be applied for up to five years from the moment the system service agreement is concluded.

Minister of Climate and Energy Kaspars Melnis: “We are providing an additional stimulating signal to ensure a favorable investment environment and promote competitiveness among entrepreneurs. We have created the opportunity to apply a discount to large consumers who install new high-capacity connections to the 110 kV and 330 kV high-voltage lines. Positively, this advantage, combined with low electricity prices on the exchange, will successfully ensure our competitiveness in the region. The price of electricity on the exchange last year, compared to 2022, is more than twice as low.”

Chairman of the Board of the Latvian Transmission System Operator AS "Augstsprieguma tīkls" (AST) Rolands Irklis: "New high-capacity consumer connections to the electricity transmission network will promote more efficient use and load of the network. New large consumers and more efficient network load will reduce costs per consumer in the long term, promoting lower electricity costs for everyone - both households and entrepreneurs. Therefore, I am pleased that the Saeima has supported the amendments prepared jointly by AST and the Ministry of Climate and Energy."

The discount will be determined and applied by AST according to the procedure and criteria set by the Public Utilities Commission (SPRK). AST will develop and SPRK will approve these criteria, according to which the discount will be applied to users (consumers) and the procedure for calculating and applying the discount.

The application of the discount will not increase costs for other transmission network users (consumers) and producers. The applied discount from the value of the transmission service tariff during the entire application period must not exceed the amount of the paid connection fee.

Source: Press release (www.kem.gov.lv)