Gaso has turned to Latvia’s Public Utilities Commission (SPRK), submitting a new tariff project for natural gas transmission system. This project provides for an increase of fixed and variable components only for small connections with low consumption, as reported by Gaso.
It provides for a small fixed fee increase of 5% for second to eighth tariff group users. At the same time, natural gas transmission tariff for users of these groups will be increased by 4% to 30%.
“Zero” and low consumption connections, including households that use gas to prepare food will experience fixed tariff portion increase of EUR 0.73. Looking at it in an annual perspective, owners of gas stoves have to keep in mind an average cost increase of EUR 13.4, whereas other tariff groups can expect an average reduction of tariffs in an annual perspective.
For the majority of natural gas users the variable component will reduce by 4% to 30%.
For example, the second group consumers will experience an average tariff reduction of 7%, whereas for the eighth group consumers average tariff reduction will be around 30%.
“The current tariff model approved by SPRK two years ago was something of an audit of the natural gas transmission network, which allowed us sorting out and improving the natural gas system in general. Gas infrastructure’s security affects not only all gas consumers but also their neighbors and people living close to the gas pipeline, which is why we should continue investing in the restoration and maintenance of the gas transmission network to reduce the risk of dangerous situations,” stresses AS Gaso board chairperson Ilze Petersone-Godmane.
The company notes the new tariff project has been prepared and submitted in accordance with SPRK recommendations, which the state Gaso is to submit to the commission all necessary information about the system’s operations and costs. More than 90% of costs in the transmission system are fixed and do not depend on the consumed natural gas volume, because regardless of consumption it is necessary to ensure maintenance of the network, its restoration and security measures.
To guarantee safety of gas supplies, the 5,300 km-long natural gas transmission network needs to be gradually restored, which required regular investments, says Gaso.
In 2020, Gaso plans to invest approximately EUR 11 million into transmissions system services and their improvements. The same amount of investments are planned for 2021 and the next four years. Every year the company establishes 25 km of new infrastructure, which creates the opportunity to attract new clients in the private housing and industrial sector.
AS Gaso is the sole natural gas transmissions system operator in Latvia that provides delivery of natural gas from the transmission system to the end consumer. The company provides development of the transmission system’s infrastructure, gas connections, maintenance and assistance in emergency situations. (BNN/Business World Magazine)