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
|Country||Latvia , applies nationwide|
|Time period||Temporary, 01 October 2022 – 30 April 2023|
|Context||War in Ukraine|
|Type||Legislations or other statutory regulations|
Responses to inflation
– Support for energy bills
|Author||Kriss Karnitis (EPC) and Eurofound|
|Measure added||15 September 2022 (updated 10 October 2022)|
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.
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.
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.
|Does not apply to workers||Applies to all businesses||Does not apply to citizens|
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 specific views to report.
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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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.