In the first half of 2022, the State Construction Control Bureau (SCCB) continued its work in the field of energy policy monitoring, improving and digitising the processes of monitoring the implementation of energy policy. With the improvement of the regulatory framework and changes to the system of monitoring and control of mandatory procurement (MP) of electricity, the number of economic operators receiving state aid in the form of mandatory procurement of electricity has shrunk significantly.

In carrying out the monitoring and control of the mandatory procurement (MP) mechanism of electricity, SCCB carries out both physical inspections and administrative inspections. In the first half of 2022, SCCB has evaluated the reports of 230 undertakings receiving state aid in the form of an MP for electricity in 2021. Similarly, 23 on-site inspections were carried out at power plants where it was stated that electricity and thermal energy meters, as well as fuel accounting meters that did not comply with the requirements of the regulatory enactments were installed in separate power plants, adequate metering of heat energy was not ensured, as well as the electrical capacity installed in the power plant did not conform to the capacity specified in the contract with SIA “Enerģijas publiskais tirgotājs”.

As a result of the evaluation of annual reports, on-site inspections, as well as checks on payment of taxes by undertakings, 32 warnings regarding the possible loss of MP rights have been issued.

During the first half of the year, SCCB adopted 169 decisions regarding the cancellation of MP rights granted to undertakings for different stated non-compliances and violations, as well as receiving applications of undertakings on waiver of MP rights, which is significantly more than during the period considered last year. On the other hand, 188 decisions on the cancellation of MP rights were taken between the beginning of 2022 and until August 17.  Since 2020 until August 17 this year, SCCB adopted a total of 256 decisions on the cancellation of MP rights granted to undertakings, including 74 decisions for stated non-conformities and violations of regulatory enactments, in 182 cases undertakings have waived their MP rights.

During the first half of 2022, SCCB decisions oblige undertakings to repay the public trader unduly or illegally received state aid of EUR 571,152.37. Since 2020, 35 undertakings have been obliged to repay a total of EUR 4,605,522.65, of which EUR 1,920,714.86 have already been recovered. The recovery process continues, including some of the undertakings still have time to pay voluntarily, as well as a part has been transferred for enforcement.

On 17 August 2022, 47 power plants received state aid, including the right to sell generated electricity within the MP, 17 biogas power plants, 10 biomass power plants, 2 natural gas cogeneration plants, 11 hydropower plants and 4 wind power plants, and 3 undertakings have the right to receive the guaranteed fee for the electrical capacity installed in the cogeneration plant.