28.11.2025

The Public Utilities Commission (PUC) has approved the electricity transmission tariffs of Latvia’s transmission system operator, JSC "Augstsprieguma tīkls" (AST), for the next three years. AST has ensured tariff competitiveness in the Baltic region and long-term stability, with the average tariff for AST users decreasing by 10% compared to the current one. The reduction will vary across different user groups, while household users' costs for electricity transmission service will remain unchanged. The transmission tariffs, developed in accordance with the PUC methodology, will enter into force on January 1, 2026.

AST has managed to maintain tariff stability despite challenges during the current regulatory period and its ambitious development plans for energy system reliability and network reinforcement in the coming years. 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. The transition to synchronous operation with Europe, as well as the rapid development of renewable energy sources, has significantly expanded AST’s duties and responsibilities in planning, managing, operating, and developing the electricity transmission system. Following Russia’s full-scale invasion of Ukraine, it has become essential to continue investing in the physical security and cybersecurity of critical infrastructure to ensure the resilience and stability of the energy system in the Baltics, including Latvia.

AST will continue the active development of the transmission network to ensure stable energy system operation and facilitate the connection of new generation and consumption facilities. In the coming years, more than 20 new substations built with developer funds will be connected to the transmission system, increasing the total number by 18% and requiring ongoing maintenance by AST specialists.

AST’s operating costs will decrease over the next three years due to a drop in electricity prices, compared to the current tariff. However, due to the increase in the new return on capital rates approved by PUC this year, AST’s capital costs have risen. AST will continue to ensure supply reliability and transmission network development by actively attracting European Union funding and using congestion management revenues. In the next regulatory period, from January 1, 2026 to December 31, 2028, PUC has allowed the use of EUR 44 million from accumulated congestion management revenues* to cover transmission system service costs, which is EUR 8 million less than proposed in the tariffs project submitted by the transmission system operator. Nevertheless, AST has managed to maintain tariffs stability in line with the original tariffs project by continuing to improve company management efficiency and further reducing operating costs.

The approved transmission tariffs have been developed in accordance with the electricity transmission system service tariffs calculation methodology, consolidating technologically and economically justified costs required to ensure the effective provision of a high-quality and reliable electricity transmission service. The current transmission tariffs remain in effect until December 31, 2025. 

*Congestion management revenues are generated from the price difference of electricity in the exchange between electricity trading areas and from the auction of Financial Transmission Rights (option) for cross-border connection capacity.

About JSC "Augstsprieguma tīkls"

AST, the Latvian electrical power transmission system operator, ensures uninterrupted and secure transmission of electricity throughout Latvia. Its vision is to become the leading transmission system operator in the region through the efficient and successful implementation of development-oriented changes. AST has 68.46% shareholding in the capital of the operator of the natural gas transmission and storage system JSC “Conexus Baltic Grid”.

For further information, please contact:

Līva Jēgere,

Head of Communications,

Phone: +371 26151344.

E-mail: liva.jegere@ast.lv