Cesvaines Siltums to merge with Madonas Siltums, promising lower bills
Madona municipality has decided to reorganize Cesvaines Siltums by merging it into Madonas Siltums, which is expected to lower heating costs for Cesvaine residents.
The Madona Municipality Council has approved the reorganization of the heating company Cesvaines Siltums by merging it into Madonas Siltums.
The move is expected to reduce heating bills for residents of Cesvaine. The council explains that merging the two municipally owned companies will ensure more efficient management and a sustainable heat supply in the long term.
The reorganization is planned to be completed before the next heating season. Residents will be informed about practical matters during the process. Heat will still be produced locally in Cesvaine; only the management structure will change. The merged entity will have access to greater resources, including engineers, equipment, and modern monitoring systems.
One of the key reasons for the merger is the heating tariff. Cesvaines Siltums' tariff has not been revised since 2022, and an updated tariff would be approximately €3 per MWh higher than the newly approved tariff of Madonas Siltums. Therefore, after the merger, Cesvaine customers will pay less than if the current model were maintained.
Madona Municipality Council Chairman Agris Lungevičs stated that starting next heating season, Cesvaine residents will receive heat at a lower tariff. A larger company is better equipped to handle emergencies and investments, including attracting EU structural funds.
Municipality Executive Director Uģis Fjodorovs emphasized that the decision was carefully considered and the process will be monitored. The merger is economically justified – similar solutions have already been implemented in Ērgļi and Lubāna with good results. Cesvaines Siltums, being a small company, could not afford to hire necessary specialists and had to rely on outsourcing. Now these specialists will be available, and Cesvaine will be integrated into the monitoring and billing systems.
Vilnis Špats, head of the Cesvaine administration, noted that residents who pay in cash should follow information about payment locations.
According to Firmas.lv, Madonas Siltums had a turnover of €3.505 million in 2025 and a loss of €148,242. Cesvaines Siltums had a turnover of €358,940 and a loss of €45,286.
Currently, Cesvaines Siltums' tariff for households is €66.80 per MWh (excluding VAT), while Madonas Siltums' tariff will be €76.53 per MWh from August 1.
