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EU PolicyWatch

Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure LV-2022-40/2912 – measures in Latvia

Reduction of the electricity system service fee for companies

Elektroenerģijas sistēmas pakalpojuma maksas samazinājums uzņēmējiem

Country Latvia , applies nationwide
Time period Temporary, 01 October 2022 – 30 April 2023
Context War in Ukraine
Type Legislations or other statutory regulations
Category Responses to inflation
– Support for energy bills
Author Kriss Karnitis (EPC) and Eurofound
Measure added 15 September 2022 (updated 10 October 2022)

Background information

On 30 August 2022, the government adopted amendments to the law on measures to reduce the extraordinary increase in energy prices (in force from 1 September 2022). The purpose of the amendment is to reduce the negative impact of rising energy resource prices on the national economy, specifically - for electricity end-users who are not household users, the annotation of the draft law states.

Content of measure

In the electricity bills of companies, the fee for system services makes up approximately 10% of the cost. The fee for the system services consists of a fee for providing the connection, a fee for the current size of the input protection device, a fee for the permitted load, a fee for the supply of electricity or fee for the transmission of electricity, and other.

Amendments to the Law provide that companies do not have to pay fees for system services, including value added tax, in the period from 1 October 2022 to 30 April 2023. For system operators (both distribution and transmission), this amount will be 100% covered from the state budget.

Support is not applied to state and local government institutions, as well as to legal entities subject to sanctions.

Use of measure

This year, the funding for this measure is required in the amount of €53 million for three months, and €70.6 million for four months next year.

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement as case not in social partner domain No involvement as case not in social partner domain
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: N/A

Involvement

No involvement.

Views and reactions

No specific views to report.

Sources

  • 01 September 2022: Law on measures to reduce the extraordinary increase in energy resource prices (likumi.lv)
  • 01 September 2022: Entrepreneurs will be compensated for the increase in the prices of energy resources (lvportals.lv)

Citation

Eurofound (2022), Reduction of the electricity system service fee for companies, measure LV-2022-40/2912 (measures in Latvia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LV-2022-40_2912.html

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