The Saeima rejects ZZS’s proposal to instruct the government to “freeze” electricity prices

On Thursday, the Saeima rejected a draft parliamentary resolution prepared by members of the Saeima faction of the Greens and Farmers’ Union (ZZS), which intended to instruct the government to develop a support mechanism for electricity users – households and companies – to compensate for the sharp rise in electricity prices.

ZZS has previously acknowledged that the proposed compensation mechanism will not completely prevent the increase in electricity prices, however, together with the existing support measures, it would, in their opinion, contribute to the stabilization of national security.

ZZS politicians called on the Saeima to instruct the Cabinet of Ministers to develop and adopt amendments to the Electricity Trade and Use Regulations, stipulating that if the average monthly wholesale price of electricity exceeds 80 euros per megawatt hour, every electricity consumer would receive compensation.

In the opinion of the party association, compensation should have been provided from the state budget in the amount of 80% for the part of the price exceeding the set limit of 80 euros per megawatt hour. In addition, ZZS offered to apply the compensation mechanism retroactively from 1 December 2021 to 30 April 2022.

Even before the Saeima’s vote, Armands Krauze, co-chair of the ZZS and deputy of the Saeima, pointed out that the vote on the draft decision submitted to the ZZS is a “litmus test” for whether the ruling coalition is able to work in the interests of the people.

As DZ Kārkliņa, a representative of ZZS, informed LETA, Krauze emphasizes that in many EU countries real solutions are being worked out that would provide immediate support to the population in connection with the dramatically high rise in energy prices.

ZZS believes that the solution it offers would have a much greater impact on price increases than the current reduction in distribution tariffs, which actually accounts for the smallest part of the cost of electricity and consumers do not feel the price reduction, says the politician.

Krauze expressed hope that “the energy crisis will not become an analogue of the Covid-19 crisis, during which coalition politicians were unable to put aside their political ambitions in the interests of the people.”

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