Daugavpils: heating to cost 7.4% more from December as Latgale industry seeks help with energy costs

Rising energy prices are reaching eastern Latvia too. Heat tariffs in Daugavpils are planned to rise by 7.4% from December, exceeding €81/MWh, public broadcaster LSM reported on Monday. The city's heating company, Daugavpils siltumtīkli, attributes the increase to suppliers no longer being willing to honour contracts at previously agreed prices.

What was discussed. The issue dominated the Nordic-Baltic Energy Resilience Summit, held in Daugavpils on 30 October by the municipality and the Nordic Council of Ministers' Office in Latvia, in cooperation with the Latvian Chamber of Commerce and Industry. According to the city, more than 200 people from over ten countries took part.

Industry. Toms Andersons, CEO of industrial yarn maker Nexis Fibers, told LSM that manufacturers are often the first to feel global crises and that energy costs feed directly into the final price, with customers negotiating over cents per kilogram. The plant runs continuously on 96,000 square metres and buys its gas at exchange prices. Andersons called for state support in both the short and the long term and, according to the city, advised companies to start with an energy audit.

Context. Antons Kutjuns of transmission system operator Augstsprieguma tīkls (AST) told LSM that more competition among producers lowers exchange prices. In Riga, the Rīgas siltums tariff will be €96.33/MWh from 1 December, 16% above last season, according to the State Chancellery, which says it would have reached €130/MWh without the government's measures.

What comes next. In Riga, tariffs will be set and reviewed monthly, and a working group including regulator SPRK will compare actual costs with forecasts every month, according to the State Chancellery. Rīgas siltums does not rule out another tariff revision during the season, BNN reported.

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