Frequently asked questions

Please see also the answers of the Ministry of Economics to the most frequently asked questions about energy efficiency.

Below you can find the answers of Elektrum Energy Efficiency Centre to the frequently asked customer questions.

About energy efficiency measures

What is the energy audit?

The energy audit means activities carried out to obtain information regarding the energy consumption structure in buildings or groups of buildings, in processes or equipment as well as to identify and evaluate cost-effective energy savings opportunities, and the results of which are summarised in a report.

What is Energy Management System ISO 50001?

Energy Management System ISO 50001 is a set of related processes, establishing an action plan and setting energy efficiency targets as well as the procedures to achieve these targets.

A continuous energy consumption evaluation process is ensured within the energy management system in order to control and reduce energy consumption, covering at least 90% of the company’s total energy consumption.

What is Environmental Management System ISO 14001?

Environmental Management System ISO 14001 has been designed to enable organisations to better manage and improve their environmental performance.

About the energy efficiency duty

What is the goal of the energy efficiency duty?

The goal of the energy efficiency duty is to promote energy efficiency and ensure control of implementing an energy management system.

Which companies must pay the energy efficiency duty?

The energy efficiency duty for large enterprises must be paid if the enterprise:

  • has failed to carry out the energy audit, has failed to implement certified Energy Management System ISO 50001 and has failed to supplement Environmental Management System ISO 14001;
  • has failed to report on implementing certified Energy Management System ISO 50001, supplementing Environmental Management System ISO 14001 or carrying out the energy audit;
  • has failed to report on the planned energy efficiency measures and the energy savings planned therein in accordance with regulatory requirements;
  • has failed to report on the implemented energy efficiency measures and the resulting energy savings in accordance with regulatory requirements.

The energy efficiency duty for large consumers must be paid if the enterprise:

  • has failed to carry out the energy audit or has failed to implement certified Energy Management System ISO 50001 or has failed to supplement Environmental Management System ISO 14001;
  • has failed to report on implementing certified Energy Management System ISO 50001, supplementing Environmental Management System ISO 14001 and carrying out the energy audit.

The size of the energy efficiency duty, the procedure for its calculation and the payment procedure are established by Cabinet Regulations No. 202 of 11 April 2017 – Regulations on the Size of the Energy Efficiency Duty and the Procedure for its Calculation, Application, Payment and Control.

How big is the energy efficiency duty?

The rate of the duty is seven per cent of the cost of electricity consumed in the previous year. The said cost is calculated by multiplying the megawatt hours consumed in a given year by the average electricity price in the industry in Latvia over the previous year (euro/MWh) as published by Eurostat.

What is the duty payment procedure?

The duty shall be paid if the economic operator has failed to perform the measures prescribed by law (the energy audit, the energy management system and supplementation of the environmental management system) or has failed to report to the Ministry of Economics on the measures taken.

The obligation to pay the energy efficiency duty is imposed by the decision of the Ministry of Economics and economic operators shall pay it once a year by 1 May of the following year.

The duty shall be paid into the basic state budget and it shall be credited accordingly to the State Energy Efficiency Fund maintained by the Ministry of Economics.

If the duty is not paid in due time, the Ministry of Economics shall calculate the late payment in accordance with the Law on Taxes and Duties, i.e. 0.05% of the overdue principal debt for each day of delay.

The duty has been calculated from 1 April 2017 for large companies and from 1 May 2018 for large consumers.

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