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Latvian Economy Ministry revokes MPC permit for Rīgas enerģija

Photo: pixabay.com.
Economy Ministry has decided to revoke the mandatory procurement permit once provided to SIA Rīgas enerģija combined heat and power plant. It should be mentioned that this company is partially owned by Māris Martinsons’s family.

According to the ministry’s estimates, this decision will help prevent a possible increase of MPC costs of approximately EYR 34.2 million in the next decade.

66% of Rīgas enerģija is owned by SIA MP Holding, 53.79% of which is in turn owned by SIA Profs Real Estate, which is equally owned by Māris Martinsons’ children Mona and Mārcis. Another 46.21% of the company is owned by Pēteris Dzirkals. Another 34% of Rīgas enerģija is owned by SIA Venture Capital, 66.67% of which is owned by SIA Annas Dzirnavas, which is owned by Ieva Jakobija. 33.33% of SIA Venture Capital is owned by Līga Šaplaka.

As explained by Economy Ministry, the permit to sell electricity as part of MPC was revoked for Rīgas enerģija because it was found out that production of electricity was not commenced in accordance with the term established in regulations.

If the energy producer does not sell electricity as part of MPC, they have the right to work in the free market and negotiate prices with traders, the ministry notes. In addition, companies can continue producing and selling electricity at CHP plants while negotiating prices with buyers and end consumers.

So far Latvia’s Economy Ministry has cancelled permits for 18 CHP plats. This has helped prevent a possible rise of MPC costs by at least EUR 301.2 million for the next decade.

In December 2017, permits were cancelled for three CHP plants – SIA Elektro Rīdzene, SIA Energo Fortis, and SIA E Strenči. This year, on the other hand, the ministry has already cancelled permits for SIA Madonas Eko, SIA Eiro-Āzijas investīciju aģentūra, SIA Evokem, SIA M Parks, SIA Eco Latvis, SIA Baltekogen, SIA Tektus, SIA Digne, SIA Atauga-G, SIA Krustpils AER, SIA Digne, SIA Atauga-G, SIA Krustpils AER, SIA Pellets Energy, and SIA E Seda.

The ministry reports that it has performed monitoring of permits previously provided to businesses over the course of the past year. Permits have been revoked for 58 businesses. Most licenses were revoked for the failure to commence energy production within specified terms. 250 businesses have been given warnings for failure to submit annual accounts, improperly filled documents or non-compliance with regulations. 35 businesses have been given warnings for tax debts.

Following public reports regarding non-compliance of certain CHP plants with Cabinet of Ministers requirements, Economy Ministry commenced inspections at 40 renewable energy resource CHP plants in October 2017.


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