The natural gas and electricity market in Latvia
Energy market undergoing changes
The Latvian energy market is developing, new service providers appear in the market every year, new alternatives of more environmentally friendly energy appear, price changes take place, new power generation options appear.
Every year the development of new natural gas connection systems takes place, and the existing ones are improved. Alternative electricity generation options become more popular and consumers – more environmentally conscious.
In this article, we have summarized several important facts about the history of the Latvian natural gas and electricity market and how the market looks today.
Opening of the natural gas market
The natural gas market in Latvia was opened on 3 April 2017. It was opened to business customers. Transmission in the natural gas market in Latvia is provided by JSC Conexus Baltic Grid, but Latvijas Gāze was divided into two companies – JSC Gaso started to provide distribution to Latvian end users, while JSC Latvijas Gāze continued to provide sales. On 31 December 2017, the ownership unbundling of the natural gas transmission and storage system operator was fully completed.
This ensures absolutely free competition and allows the consumer to choose the most suitable service provider. Both the State and households, as well as companies, benefited from the opening of the natural gas market in Latvia. The country strongly promoted domestic business, improved the quality of the natural gas trading service and equalized the price of natural gas in the Baltic region.
Although on 1 January 2019 households gained the opportunity to participate in the natural gas market and change their trader, practically all natural gas users continue to receive the regulated tariff. In turn, companies gained the opportunity to choose the most suitable natural gas supplier in Latvia, as well as to purchase natural gas from a supplier outside Latvia.
At present, natural gas services in Latvia are used by approximately 450,000 customers, most of them use it for household stoves, but natural gas has many other uses.
A natural gas contract can be concluded by choosing a fixed price for a natural gas service or a price that depends on a price formula consisting of a fixed trader’s mark-up and the Gaspool exchange price. Also, new gas interconnections have already connected Finland with Estonia and will connect Lithuania with Poland.
Elenger entered the Latvian natural gas market in 2018, providing advantageous offers for both households companies. You can find more information about Elenger’s natural gas solutions here.
Electricity market development
Back in 2007, the local electricity market was opened to companies with high electricity consumption in accordance with the Electricity Market Law, in April 2012 it was opened to companies with medium electricity consumption, but in November 2012, the electricity market in Latvia was opened to all companies.
In turn, the electricity market was opened to households in 2015. All these amendments and innovations created a wider electricity supply in Latvia, and also strengthened the European Union’s single electricity market. Although Latvia only became involved in the European single electricity market in 2013, over the course of these 7 years many different changes and improvements have been made, new participants in the Latvian electricity market, new services, alternative ways of generating electricity have appeared. The electricity market in Latvia is developing every year, providing consumers with the opportunity to choose the most suitable type of service and its provider.
Today, the electricity market consists of many representatives, each with its own pros and cons, as is customary in the free market. There are differences in prices, quality and quantity of services between service providers.
Elenger provides electricity to both households and businesses. At the request of each customer, a special offer is created, the best solution for the customer’s wishes and needs is found.
Renewable electricity gaining ground
Thinking of a greener future, Elenger also provides the opportunity to purchase electricity generated from renewable energy sources only. When purchasing electricity from Elenger, you can choose one of two price options – a fixed price or a price that depends on the exchange price. When choosing the exchange price, the bill amount consists of a fixed trader’s mark-up and the Nord Pool Spot LV exchange price. However, the fixed price remains unchanged throughout the contract. You can find more information about Elenger’s electricity offer and solutions here.
Our mission is to continue to develop our services and the quality of services, thus developing the natural gas and electricity market of Latvia and the entire European Union. We continue to look for new solutions for every modern need, new alternative ways of power generation, ways to help companies grow and become more energy efficient. If it is also important for you to receive high-quality energy at attractive prices – choose the service you need and receive a suitable offer.