Natural gas market open, but awareness is declining – growing number of residents unaware they can switch gas suppliers
This year, the share of Latvian residents who are not informed about the possibility of switching their natural gas supplier has increased to 27%. For comparison, in 2024, 21% of respondents gave this answer, according to a survey conducted by Elenger, the largest private energy company in the Baltic and Finnish region.
The data also reveal a clear trend: the younger the resident, the lower the level of awareness about the option to switch natural gas suppliers. The lowest level of awareness is observed among young people aged 18 to 29, where 44% admit they are not informed about such an opportunity. Low awareness levels were also identified among residents living in the regions of Kurzeme and Latgale. In contrast, the best-informed groups are residents aged 50 to 74, as well as those living in Riga and Zemgale.
“The greater the awareness of residents and their willingness to compare offers, the higher the potential to reduce costs. Intense competition in the energy market works in favor of consumers, and our experience shows that by reviewing contract terms, households and businesses can save significant amounts during the heating season. However, despite the fact that a considerable share of respondents indicate difficulties in paying utility bills, market activity remains low – relatively few residents switch natural gas suppliers. This can be explained both by insufficient awareness and by the misconception that comparing offers and changing suppliers is a complicated and time-consuming process,” explains Dāvis Skulte, CEO and Chairman of the Management Board of SIA “Elenger.”
“Overall, households that use natural gas only for cooking do not constitute a significant market volume, as their consumption is relatively low. In Latvia, competition and supply are primarily focused on households that use gas for heating, as well as business clients,” says Dāvis Skulte. “The residents who most actively switch natural gas suppliers and choose our services live in Latvia’s largest cities – Riga, Jurmala, Marupe, Jelgava and Liepaja. Since the opening of the natural gas market in Latvia, Elenger has succeeded in gaining a significant market share in the household segment. The market is characterized by strong competition, which is good news for consumers, and we see growth opportunities in Latvia. Our goal, by developing competitive natural gas offers for households and ensuring high-quality service and customer support, is to reach a leading position in the household segment within the next few years, achieving a 25% market share.”
In Latvia, households have been able to switch natural gas suppliers since May 1, 2023, when the natural gas market for households was fully opened. This means that residents are free to choose the offer that best suits them by comparing prices and contract terms, and, if necessary, switch suppliers without making technical changes to their property.
Elenger conducted the surveys in cooperation with Norstat Latvija in January this year and in May 2024. A total of 1,006 and 1,003 residents aged 18 to 76 participated in the respective surveys.
