Over a third of Latvian households would qualify for state help if energy prices spike

More than a third of Latvian households would be entitled to state support if energy prices rose sharply, according to calculations by the Ministry of Climate and Energy. Of the 882,929 households in EIKIS, the state system for compensating energy costs, in October, 312,508 or 35.4% would meet the criteria, the LETA news agency reported.

Who would qualify

The support is targeted at households on low and below-average incomes. Monthly income per household member must not exceed €495.57. The ministry assumes such households may spend up to 30% of their income on housing costs, including rent, utilities, electricity, gas, heating and items such as property insurance. EIKIS calculates income automatically, so households usually do not need to apply.

When support kicks in

The Cabinet can order support if one of the thresholds is exceeded for three months in a row: an average Nord Pool exchange price for electricity above €208 per megawatt hour, a TTF futures price for natural gas above €91 per megawatt hour, or district heating tariffs approved by the Public Utilities Commission above €111 per megawatt hour in at least five of Latvia’s ten largest cities.

Prices are currently far from those levels. Natural gas cost €57.50 per megawatt hour in August, €72.21 in September and €73.94 in October.

How much support there would be

• Electricity: a €8 discount on the first 100 kilowatt hours, capped at the amount of the bill.
• Electricity for heating (500–2,000 kWh a month): 50% off the part of the price above €0.16 per kilowatt hour, up to €0.10 per kilowatt hour.
• Natural gas for heating (at least 221 kWh a month): a €110 discount, capped at the amount of the bill.
• District heating: 50% of the difference between the approved tariff and €111 per megawatt hour.

The government sets the support period and its end date each time.