The average value of the OEC will remain at its current level next year BNN

The average value of the OIC in 2019 is maintained at the previous level – 22.68 euros / MWh or 0.02268 euros / kWh, according to the AS approved by the Public Utilities Board (PUC) Public energy trader (Public Operator), the mandatory purchase component (OIC), which will come into effect on January 1 of the following year, informs the PUC.

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 a constant power and consumption of 100 kWh – an increase of 0.01 euro per month, note SPRK.

The power components approved by the PUC in May this year remain unchanged until 2021. On the other hand, the component of the OCI or the variable component, whose load depends on consumption, will be between 0 , 01474 euro / kWh as from 1 January 2019. As a result, the OCI component intended to cover the cost of purchasing electricity from producers using natural gas for the production of electricity in the context of compulsory purchases will be of 0.00599 euro / kWh. In turn, to cover purchase costs related to the purchase of electricity from producers using renewable natural resources for electricity generation, the OIK component will be 0.00875 euro / kWh.

As of January 1, 2018, the payment of OIC to electricity users was proportional to the consumption of electricity. In turn, with the amendments Electricity Market Act (ETL), from 1 January 2018, the order has been changed – the capacity charge (fixed charge) is not covered proportionally to the electricity consumption, but depends on the type of connection of the User, while the load of energy (variable load) is 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 CSP received a request from the public economic operator requesting approval of the mandatory electricity supply components as of January 1, 2019 and to add a calculation of the mandatory supply components.

On May 7, 2018, the Cabinet of Ministers issued an order On reducing the total consumption of electricity and power component, which supported the reduction of the total purchase and electricity component from 25.79 euros / MWh to 22.68 euros / MWh. The SPRK concludes that, when calculating the OIC, the public merchant took into account the order of the Cabinet of Ministers. As a result, the average value of the total mandatory purchase and 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.

ETLs are executed by a specific public operator in AS Latvenergo subsidiary AS Public energy trader. The public operator calculates and submits to the OEC the approval of the PUC in accordance with the regulator's methodology.