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Endziņš: consideration of MPC 2 is pure madness

Jānis Endziņš/lrpv.gov.lv.
Considering that electricity costs in Latvia are higher than they are in neighbouring states, thinking of Mandatory Procurement Component 2 is pure madness, said chairman of Latvian Chamber of Commerce and Industry Jānis Endziņš in an interview to Rīta panorama programme of LTV.

He said that LCCI does not support the initiative for new subsidies to be provided to electricity production.

The chamber’s representative also said that Latvia should look for ways to reduce electricity costs to make prices more competitive with other Baltic States. According to Endziņš, Latvian entrepreneurs currently play 15-20% more than their colleagues in Estonia and Lithuania.

Ir magazine had previously reported that a new legislative draft on MPC2 was under works under State President Raimonds Vējoņis’ fold. The new legislative draft is aimed at a significant increase of local electricity production output – «securing at least 2 TWh of electricity produced from local renewable resources for the market by 2030».

Commenting on the initial version of the draft, Vējonis said that it is important strengthening Latvia’s energy security and developing green economy.

Economy Minister Arvils Ašeradens explained that Latvia cannot afford new subsidies for electricity production. He said that as Latvia’s economy enters the competition phase. In addition regulations have been developed to allow industrial producers to procure energy at competitive prices. «This is why I am very cautious about any initiatives that require additional subsidies. We definitely cannot afford MPC-2 right now,» added the minister.


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