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)