PUC has approved reduction of distribution service tariffs starting from 1 January 2020
Riga, 2019-11-28 13:26 CET --
On 27 November, the Public Utilities Commission (PUC) has approved reduction of the variable component of electricity distribution service tariffs by 8 % on average starting from 1 January 2020. The component for ensuring of connection (fixed fee) remains unchanged; therefore, the distribution service tariff is reduced by 5.5 % on average. The distribution service tariff is approved for the next 5 years – until 2024.
Reduction of distribution service tariffs is ensured by the operational efficiency improvement program started in 2017, which includes process improvement, reduction of staff and the number of vehicles and real estate bases.
Sadales tīkls AS is a subsidiary of Latvenergo AS, which maintains and develops the distribution network, providing electricity to more than one million customers, covering 99 % of the territory of Latvia. In 2018, the revenue of Sadales tīkls AS distribution service was 304.4 million EUR, EBITDA – 110.1 million EUR, assets – 1,659 million EUR.
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Latvenergo Group is one of the leading energy suppliers in the Baltics operating in electricity and thermal energy generation and trade, natural gas trade, electricity distribution services and lease of transmission system assets. Latvenergo AS has been acknowledged as the most valuable company in Latvia for several times. International credit rating agency Moody's has assigned Latvenergo AS an investment-grade credit rating of Baa2/stable.
Latvenergo Group is comprised of the parent company Latvenergo AS (generation and trade of electricity and thermal energy, trade of natural gas) and seven subsidiaries - Latvijas elektriskie tīkli AS (lease of transmission system assets), Sadales tīkls AS (electricity distribution), Elektrum Eesti OÜ (trade of electricity and natural gas in Estonia), Elektrum Lietuva UAB (trade of electricity and natural gas in Lithuania), Enerģijas publiskais tirgotājs AS (administration of mandatory electricity procurement process) and Liepājas enerģija SIA (generation and trade of thermal energy in Liepaja, electricity generation). All shares of Latvenergo AS are owned by the state and held by the Ministry of Economics of the Republic of Latvia.