Rīgas Siltums JSC reported that a 16% increase in the thermal energy tariff is expected in Riga starting November 1.
The planned thermal energy tariff could be EUR 66.76 per megawatt-hour (MWh) without value-added tax (VAT). The increase in tariffs was explained by the situation on the energy market and a significant increase in natural gas prices.
“The price of natural gas on the stock exchange has increased dramatically and has risen ten times compared to the summer of last year. As natural gas prices continue to rise (now around €80 per MWh), there is no reason to think that the price of thermal energy purchased will decrease in the coming months,” said Normunds Talcis, Chairman of Rīgas siltums.
The fuel and purchased heat costs section is rising, which represents more than 80% of the tariff.
Rīgas siltums produces 30% of the amount of thermal energy needed during the heating season in Riga, while 70% is purchased. The main supplier is JSC Latvenergo, which produces thermal energy from natural gas, and whose price is only increasing since spring.
To reduce the thermal energy tariff, as well as to reduce its dependence on imported energy resources, the company is developing the production of thermal energy with woodchips.