25.07.2025.
Latvia’s transmission system operator AS “Augstsprieguma tīkls” (AST) has submitted a draft electricity transmission system service tariff for the next three years to the Public Utilities Commission (PUC) for approval. AST’s total costs are set to decrease by 0.7%, positioning Latvia’s tariff as the most competitive in the Baltics and, according to ENTSO-E, among the lowest in Europe*.
“Ensuring long-term stability of the electricity transmission tariff is one of AST’s key priorities, as it supports the electrification of the Latvian economy and the overall increase in electricity consumption. While achieving ambitious operational goals and strengthening energy security for Latvia and the wider region, AST has managed to maintain transmission tariff stability, even achieving a slight cost reduction. This has been made possible through the effective use of European Union funding for development projects, as well as revenues from congestion management. Additionally, overall costs have been reduced due to a lower electricity prices compared to the previous regulatory period, and internal efficiency improvements introduced by the company. The proposed tariff, effective from 1 January 2026, ensures that household transmission charges will remain unchanged, while for customers with a typical consumption profile, the cost will decrease by an average of 9%—a clear indicator of the sustainable development of Latvia’s energy system without placing additional burden on consumers,” emphasizes AST Chairman of the Management Board Rolands Irklis.
“The ability to create a stable environment in which the economy can thrive is critical to the well-being of our society. AST's ability to maintain stable transmission tariffs sends a strong signal to investors and is good news for all electricity users. I am pleased that AST, by implementing corporate governance focused on the interests of the public and its customers, prioritizes both security of supply and service affordability. A clear testament to this is AST’s ability to use resources saved in previous years to implement the new functions of Baltic transmission system operators – the development of the balancing market, strengthening of cybersecurity, and management of grid connection projects – thus ensuring cost stability," said Kaspars Melnis, Minister of Climate and Energy.
Earlier this year, on 9 February, the Baltic transmission system operators successfully completed the synchronisation of the Baltic power systems with Continental Europe — nearly a year ahead of the original schedule. Operating in synchronous mode with Europe and the rapid development of renewable energy sources has introduced new responsibilities for AST in the planning, operation, and development of the transmission system, including increased personnel costs. Following Russia’s full-scale invasion of Ukraine, strengthening the physical and cyber security of critical infrastructure remains a vital necessity for energy system resilience and stability across the Baltics, including Latvia. AST will continue active development of the transmission network to ensure secure system operation and facilitate the connection of new generation and consumption facilities. In the coming years, over 20 new substations will be connected to the transmission system, increasing the total number by 18% and requiring ongoing maintenance by AST specialists. Due to a doubling of the allowed return on capital rate approved by PUC earlier this year, AST’s capital costs have increased. Nevertheless, the company’s total operational costs have not grown despite increased scope of work and infrastructure, positively reflected in the submitted tariff proposal for the three-year period from 1 January 2026 to 31 December 2028.
The submitted tariff proposal has been developed in line with the electricity transmission system service tariff calculation methodology, consolidating only technologically and economically justified costs required to ensure safe, reliable, and efficient transmission services. Based on the volumes included in the tariff, it is expected to reduce AS “Sadales tīkls” distribution costs by approximately 1%, positively affecting end-user electricity bills. The transmission tariff accounts for a small portion of the total electricity distribution service tariff, which, together with the electricity consumption charge and value added tax, comprises the final electricity bill.
Before the tariff is approved, users will have the opportunity to review the proposal and submit comments or suggestions. The current transmission tariff remains in effect until 31 December 2025.
*Based on ENTSO-E data, Latvia currently has the 8th lowest transmission tariff in Europe for lower voltage connections (ENTSO-E, 2023, pp. 12–13): https://www.entsoe.eu/news/2025/06/20/entso-e-publishes-its-annual-overview-of-transmission-tariffs-in-europe-for-2022-and-2023/
About AS Augstsprieguma tīkls
AST is Latvia's power transmission system operator, which ensures continuous, secure and sustainably efficient power transmission throughout Latvia. Its vision is to become the region's leading transmission system operator, which implements development-oriented changes efficiently and successfully. AST owns 68.46% of shares in the natural gas transmission and storage system operator AS Conexus Baltic Grid.
For further information, please contact:
Līva Jēgere,
Head of Communications,
Phone: +371 26151344.
E-mail: liva.jegere@ast.lv