The most important news on Sadales tīkls AS distribution system tariff changes
Information updated on 27th June 2023
From 1st July 2023, new tariffs for electricity distribution system services of Sadales tīkls AS will come into force. Tariff changes will appear on your August electricity bills for July, therefore, to clear up any confusion and enable you to understand the changes before you receive your new bill, we have summarised the most important information.
In brief:
- New tariffs will replace the existing ones: Basic and Special;
- Tariffs will be the same for households, as well as for businesses;
- There will no longer be multiple time zones – charges will not vary depending on the time of the day;
- You will see the first changes in your August electricity bill for July;
- The transition will take place automatically from 1st July by assigning the Basic tariff that matches the technical characteristics of the connection to all customers, therefore, you do not need to take any additional action yourself;
- If required, you can change your tariff plan free of charge.
See detailed information on the new tariffs in the article below!
What changes are expected?
1. Two tariff plans will be in use instead of the current tariffs: Basic and Special;
The new tariffs are designed to help customers use their connection more efficiently – by matching the available capacity to their actual needs. The two tariffs differ in the proportion of fixed and variable parts.
Basic tariff plan is suitable for regular consumption. The fixed part of this tariff or the charge for capacity maintenance is higher, while the variable part – charge for electricity supply – is lower.
Meanwhile Special tariff is suitable for low or seasonal consumption, where the connection is used irregularly or with very low electricity consumption, e.g., for an apartment or summer house that is occupied only periodically during the winter period, for businesses with seasonal activities, for garages, basements or similar consumers. The variable part of this tariff is higher, but the fixed part is lower.
The fixed part of the tariff will depend on the number of phases and the capacity at your facility, while the variable part will depend on the electricity consumed.
2. Same tariffs for households and businesses
Once the new tariffs come into force, the customers will pay the same amounts for identical connection specifications and electricity supplied, regardless of their legal status.
3. Single time zone
The new tariff sets an equal price for electricity at any time of the day.
Where will I see the changes?
The total electricity charge in your bill is made up of three parts:
- the price of electricity, determined by the market and competition;
- government regulated tariffs: transmission and distribution system services that are provided by Augstspriegumu tīkls AS and Sadales tīkls AS;
- value-added tax.
In the August invoice for July, you will see the changes in the tariffs of Sadales tīkls AS for distribution system services. For instance, "Transmission and Distribution Services Basic - 1 1F" or "Transmission and Distribution Services Special - 1 3F".
What do I have to do on 1st July?
The transition to the new tariff will take place automatically on 1st July, therefore you will not need to take any additional steps. All customers will be assigned the Basic tariff plan that complies with the technical parameters of their connection. You will see your current tariff in your electricity bills, in the "My contracts" section of the Elektrum.lv portal, under the "Objects" tab, as well as in the customer portal of Sadales tīkls AS e-st.lv.
How much will I pay in the future?
The impact of the new tariffs on households and businesses will differ, depending on the connection parameters and consumption. For information on upcoming changes to your distribution system services bill, please use the tariff calculator of Sadales tīkls AS.
By entering your consumption, the number of connected phases, the current strength and the electricity price in the calculator, you will see what your payment for transmission and distribution services will be until 30th June and what the new payment will be from 1st July for both tariff plans. This will give you an idea of the expected increase in price for transmission and distribution services for your connection and consumption. You can find out the number of phases and the capacity of the connection at your facility in the “My Contracts” section, under the “Objects” tab next to the specific agreement.
After the tariff change, the charges for the distribution system service have increased. What can be done to reduce them?
In this case, it is worth assessing the capacity of your existing connection by using the load calculator of Sadales tīkls AS. Indicate your connection capacity, the size of your home and the electrical appliances you use at home. The calculator will indicate the recommended connection load for you. You can enter your potential connection capacity again in the tariff calculator to see how the prices for transmission and distribution system services change.
Important! It is not advisable to change the connection parameters on the basis of increasing prices for transmission and distribution services alone. The decision must be evaluated, considering the consumption, the electrical appliances used, and future plans regarding the connection of additional electrical appliances or heating systems. This decision must be carefully evaluated and an electrician must be consulted!
Can I change my tariff plan?
Yes, you will be able to change your tariff plan free of charge by applying for a tariff change at the Sadales tīkls AS customer portal e-st.lv
July, August and September 2023 will be a transitional period and the tariff changes you apply for will be made by Sadales tīkls AS depending on your preference – on the first date of the same month or the next month. For instance, if you decide that you want to change your tariff on 20th August, you will be able to change it as of 1st August. If the transitional period ends and you apply for a tariff change after 1st October, the changes will only take effect as of the first date of the following month.
Please note! When choosing the Special tariff, keep a close eye on your consumption, since even small fluctuations thereof can quickly increase your costs! For instance, if you decide to sell your apartment and do not occupy it, it is worth choosing the Special tariff for the time period when it is not occupied. As you move in, your electricity consumption increases – it is worth considering a tariff change to select a tariff that is suitable for regular use.
From 1st July, you will be able to change your tariff plan once a month.
How do the changes affect me if I install solar panels?
All electricity users will be affected by the changes to the transmission and distribution tariffs, regardless of whether or not they have solar panels installed at their property. Tariff changes have no direct impact on the payback period of solar panels and do not impose special or additional tariffs or other additional burdens or restrictions on solar panel owners.
Solar panels are a valuable long-term investment, the payback period of which is particularly favourably affected by higher self-consumption during periods when the sun is shining and electricity is being generated and by the Net Metering system that is currently in place. It allows you to store the electricity generated at your property that is not consumed immediately, and to use it for covering the electricity consumption of your property during times of low solar intensity within the year.
With the use of the Basic tariff and Net Metering system, the owners of solar panels will continue to pay only the distribution service charge for the kilowatt hours they have stored and taken back.
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