The Latvian government has passed a proposal by the Economy Ministry to reduce the mandatory procurement component (MPC), which forms part of the price of electricity by 23% in the year 2021.
This would mean a reduction of the price of the MPC from EUR 22.68 down to EUR 17.51 per a megawatt hour. In 2021, this will be covered with EUR 20 million taken from the dividends of the Latvian national energy company Latvenergo.
However, in the following years, it is planned to reduce the MPC rate to EUR 16.38 per megawatt hour in 2022 and to EUR 13.25 per megawatt hour.
The Latvian Economy Ministry stated that Latvenergo will pay to the state at least EUR 89.64 million for the review year of 2020 and at least EUR 74.5 million for the next two years.
