The payment for natural gas consists of five components – the price of natural gas, transmission service fee, the distribution operator services, as well as excise and value added tax regulated by the state. Natural gas prices are set by the free market, i.e., prices fluctuate depending on the global situation, as they are linked to the European gas exchange indices.
Natural gas
The price of natural gas depends on the selected product. It may be fixed for a specific time period or linked to a European gas exchange. The price of natural gas includes the costs of storage and transmission capacity system services.
Distribution system service
Provides the delivery of natural gas to the customer's border. The payment consists of two parts – fixed and variable. The variable part depends on the consumption group, while the fixed part depends on the maximum permitted load.
Transportation system service
Conexus Baltic Grid is responsible for the transmission system services, which ensure the transportation of natural gas via the main pipelines (starting point for the supply of Latvian users).
Excise tax
Changes depending on the purpose of use. Rates are available here.
Value added tax
The total payment for natural gas is charged with VAT of 21%.