By approving the amendments proposed by the Ministry of Economics to Regulations of the Cabinet of Ministers No. 345 of 1 June 2021 “Regulations Regarding the Trade Service of a Protected Customer”, the government decided to extend until 30 April 2023 the period during which an increased amount of support will be provided to protected users, as well as to extend the range of beneficiaries of the protected user support.
The high prices of energy services caused by the current geopolitical situation pose social challenges for many of our citizens, including large families and low-income households. By paying for utilities, they may not have enough money for food, winter clothing and other essentials. Therefore, until the end of this heating season, we will continue to provide double and even triple state support for the payment of monthly electricity bills to protected customers.
At the same time, given that, until now, only certain electricity traders have voluntarily provided support to protected customers, with the entry into force of these amendment other traders with a significant number of customers whose services are likely to be used by one of the protected user groups will also be obliged to do so, because right now, every reduction in bills or costs is a big help for these families,” the Minister of Economics Ilze Indriksone says.
As it is known, the Electricity Market Law provides that a protected user has the right to receive the electricity trade service for a protected user, which is essentially a reduction in the electricity bill payment financed from the state budget. Support for protected users is provided by the State Construction Control Bureau. On 1 September 2021, the protected user data information system (ALDIS) was launched. It is a new and effective solution for granting automatic support to cover electricity costs for large families, pensioners with disabilities, families with children with disabilities, and low-income households. Regulations of the Cabinet of Ministers No. 345 provide for the conditions for provision of the protected user trade service, as well as the procedures for financing and supervision; the procedure, in accordance with which protected users receive the service; as well as the procedure, in accordance with which the service provider and the institutions involved shall ensure the circulation of information and the amount thereof, as well as the rules of processing data in the protected user data information system.
Therefore, taking into account the high increase in electricity price and the proportionality of the amount of support to date, the following support for electricity settlements is provided from 1 November 2021 to 30 April 2023:
- for a poor or low-income household (person) – EUR 15 (previously EUR 5);
- for a family (person) with a disabled child – EUR 15 (previously EUR 5);
- for a person with disability group I or his or her guardian – EUR 15 (previously EUR 5);
- for a large family – EUR 20 (previously EUR 10).
To broaden the range of beneficiaries, with the approved amendments to the regulations it has been defined that the protected user trade service should be provided by an electricity trader providing an electricity trading service to more than 10,000 households. This means that, with the entry into force of the regulations, not only AS “Latvenergo” and SIA “TET”, which already voluntarily do so, but also, for example, SIA “Enefit”, which has not done it so far, will have to provide support to protected users, thus ensuring that the service is provided by the largest household electricity traders.
At the same time, it is provided that the protected user, whose electricity trader does not provide the protected user trade service, will be allowed to terminate the electricity trade agreement unilaterally without the early agreement termination fee, i.e. no agreement termination fee can be imposed on a user if the trader does not provide the service.