Under the Latvenergo trademark "Elektrum" customer's bill, the vast majority of electric companies or 80% of energy companies will not exceed 3.5 euros per month, said Ullis Mucinieks, director of sales at Latvenergo on Thursday.
Approximately 10% of Elektrum's electricity bill will not increase, 40% will be 1.70 euros, 30% will be 3.50 euros, and 20% will be over 3.50 euros.
He explained that the increase in bills depends on the customer's power consumption. 10% of all Elektrum customers are protected users, and invoices remain the same as next year. 40% of customers with a maximum of 100 kilowatt-hours (kWh) of electricity per month will receive an invoice of 1.70 euros, a 30% consumption of 100-200 kWh, an increase of 3.50 euros and an additional 20% customer price increase. More than 3.50 euros.
Mucenieks said that the price of electricity in Latvia is related to the price of the Scandinavian Stock Exchange. The interconnected Baltic coast has been integrated into the Scandinavian electricity market, and stock prices have risen sharply this year.
Customers who bought electricity while changing stock market prices using stock market products experienced price fluctuations after the summer. On the other hand, for customers using wireline products, the price change will apply to other time periods depending on the contract term. On January 1, when the electricity contract was signed, about 85% of the customer contract was closed, so the proposed fee would change on that date, Mucenieks explained.
"The rise in electricity prices this year was mainly affected by the weather, and the rise in electricity prices is a beautiful, long price for the summer," Mucenieks says Scandinavia produces a lot of electricity from water and wind resources. "If there is no water in the river, electricity must be produced in different ways and it is more expensive," he added.
Compared to the same period last year and 10 months in 2018, electricity prices in Scandinavia increased by 49%. The price increase rate in Latvia is about 40%.
About future forecasts Mucenieks said electricity rates will remain unchanged in the first half of 2019. "We do not expect stock prices to fall sharply next year," Mucenieks said. The Scandinavian river level is unlikely to recover and is low, so next year will not be so hopeful. "
Latvenergo serves approximately 95% of electricity users in Latvia.
Starting January 1, 2019, electrical customers of the Latvenergo brand Elektrum will raise their electricity rates from 0% to 15%.
Latvenergo project manager Ilvija Livmane has informed us that under the terms of the contract, "Elektrum" will send new prices to all future customers until the end of the year. Price fluctuations are individual and depend on the amount of electricity consumed. For example, two customers with the same connection type will use the "Elektrum 600+" product. If you consume 600 kilowatt-hours (kWh) a month, electricity consumption per kilowatt-hour (kWh) varies within a single product, depending on the amount of electricity consumed. A further 900 kWh per month will change the price per kWh for a product, "explains Latvenergo.
The company pointed out that the electricity prices on the stock exchange increased by 49% over the 10 months of 2018 compared to the same period in 2017. Livmane also emphasized that the electricity bill is one of the components of a bill that accounts for about one-third of the total bill. Next year's household electricity usage will increase by 33 ~ 35%, but the total cost will be 0 ~ 15% because the total usage fee is only one-third, and the protected users will not change at all "The increase in the bill will affect connectivity and the amount of electricity consumed by other users."
Elektrum customers have received notices from January 1 of the following year that indicate changes in electricity rates. For individual customers, many electricity rates are being raised even if the price is the same or lower.