RIGA, July 8 (LETA) - Effective August, the heating tariff in Carnikava could increase fourfold, Adazi Region Council said.

According to the municipality, the current natural gas supply contract, which stipulated a constant natural gas price over the last two years, has expired.

The contract signed by municipal agency Carnikavas Komunalserviss in 2020 stipulated a fixed natural gas price of EUR 10.13 per megawatt-hour (MWh). The heat supply price therefore ranged from EUR 38 to EUR 40 per MWh.

Once the contract expires, payments for gas will be made on a monthly basis according to the exchange price for each specific month. Based on current forecasts, natural gas will cost EUR 105 per MWh, which means that the heating tariff will increase to EUR 160.09 per MWh.

The municipality explains that the price of gas has increased several times in the last year, reaching a record EUR 130 per MWh this past April. At the moment, the price of natural gas is around EUR 90 to EUR 110 per MWh.

Current market forecasts suggest that the gas price will remain within these limits until next spring.

Gas costs make up 73 percent to 80 percent of Carnikava's district heating tariff, therefore the anticipated increase in the gas tariff will significantly affect household spending on heating and hot water supply.

The municipality reminds that in June the government decided to compensate half of the increase in the prices of heating, electricity and natural gas during the heating season, October 1 to April 1. After the Cabinet regulation enters into force, Carnikavas Komunalserviss will inform residents about the impact of the tariff compensation.

Carnikavas Komunalserviss has applied for support from the Central Finance and Contracting Agency for modernization of the boiler house at 5 Tulpju Street so it could use pellet fuel and solar collectors. The boiler house is the most powerful in Carnikava and produces about a third of the total volume of heating consumed in the village.

Carnikavas Komunalserviss provides the following utilities to Carnikava residents: water supply, sewage disposal and treatment, heat supply, and waste management.