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The Board of the Public Utilities Board (Regulator) has approved the computed power purchase power of calculated electricity (OIK) submitted by AS "Public Energy Trader" (public operator), which will come into force on 1st January 2019.
The average value of the OEC in 2019 is maintained at its current level of 22.68 EUR per megawatt (EUR / MWh) or 0.02268 EUR per kilowatt hour (EUR / kWh).
This means that substantial changes to the payment of the electricity bill of the end user of the OIC are not expected. At the same time, it should be kept in mind that users with different connections have different effects.
For example: with constant power and consumption of 100 kWh – an increase of 0.01 euros per month.
The average value of the OIC the following year is maintained at its current level.
Regulator infographic
The power components approved by the regulator on May 23, 2018 remain unchanged until 2021. On the other hand, the component of the OCI or the variable component, which depends on consumption, will be 0 , 01474 EUR / kWh as from 1 January 2019.
As a result, the OCI component to cover the costs of purchasing electricity from producers using natural gas for power generation through mandatory purchases will be EUR 0.00599 / kWh.
To cover purchase costs arising from the purchase of electricity from producers using renewable natural resources for the production of electricity, the OIK component will be EUR 0.00875 / kWh.
As of January 1, 2018, the payment of OIC to electricity users was proportional to the consumption of electricity. On the other hand, with the amendment of the law of the electricity market (ETL), from 1 January 2018, the order was changed – the fee for capacity (fixed fee) would no longer be charged proportionally to the consumption of electricity, but depending on the type of connection of the user, while) – proportional to the consumption of the user.
According to ETL, the public merchant buys electricity from electricity producers as part of the mandatory procurement, pays a guaranteed fee for electricity installed in power plants, makes payments for energy intensive manufacturing companies, covers balancing costs, as well as administrative costs.
The mandatory supply costs of the public operator are covered by all end users of electricity in proportion to their electricity consumption. In turn, the costs of its public operator, which consist of payments for installed electricity capacity, are covered by all Latvian end-users and are allocated to the consumption and voltage level groups in proportion to the portion fixed product system services.
On October 22, 2018, the regulator received a request from the public dealer proposing to approve the mandatory electricity purchase components as of January 1, 2019 and to add a calculation of the components of electricity. Compulsory supply.
On May 7, 2018, the Cabinet of Ministers issued the ordinance "On reducing the compulsory purchase component and capacity of total electricity", which advocated the reduction of the total mandatory supply component and power of 25.79 EUR / MWh to 22.68 EUR / MWh. The regulator concludes that, when calculating the OIC, the public trader took into account the decree of the Cabinet of Ministers. As a result, the average value of the Purchasing and Total Energy component in 2019 has been maintained at an existing level.
Compulsory electricity purchase is a state-funded support mechanism for electricity producers producing electricity in cogeneration plants or from sources of electricity. 39, renewable energy.
ETL's public reseller functions are handled by JSC "Energy Public Trader", a subsidiary of AS "Latvenergo". A public trader must calculate and submit to the regulator an OIK for approval according to the methodology of the latter.
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