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Latvian Chamber for Commerce and Industry proposes preventing new MPC reforms

Increase of mandatory procurement components cannot be allowed. Exactly the opposite – this cost should be dropped entirely for end electricity prices in an attempt to improve international competitiveness of companies, BNN was told by council members of Latvian Chamber for Commerce and Industry.

The council notes electricity prices in Latvia are already higher than prices in neighbouring countries, which is largely because of the market price, management and distribution, as well as MPC, especially in the production sector. «This is why it is important to commence work on reducing MPC volume in the near future and full closure of this practice in the far future by forming a new and comprehensive energy strategy and action plan for at least next five years.»

LCCI chairman Jānis Endziņš says: «It is clear that MPC alone will not resolve all problems. This is why it is necessary to think more widely. We need production, but we also need to keep in mind that those companies have to be energy-intensive. This is why electricity in the end is the decisive factor for competition.»

He adds that Economy Ministry now has to prepare a comprehensive road map for future actions in order to isolate benefits for all industries, not just some of them.

LCCI invites the ministry to immediately assess costs of state-owned Sadales tīkls and investment plans, which often seem unreasonable and confusing for businessmen and residents. So we ask supervisory institutions to carefully follow distribution of finances. «This is also a way to reduce the cost of electricity.»

Also council members believe that increasing costs for businessmen to realize politicians’ plans to become more attractive to voters prior to elections and maintain prices as low as possible for households would be unfair. «We do understand that residents are the electorate. However, it would be near-sighted to reduce businesses’ competitiveness even more by increasing their portion of MPC in an effort to become more attractive to voters in preparation for upcoming Saeima elections,» said Endziņš.


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