Pellet producers sign memorandum prioritizing domestic market
Three Latvian wood pellet producers have joined a voluntary initiative, pledging to secure sufficient supply for local households ahead of the heating season and adopt a transparent pricing policy.
On 5 August, following an initiative by Climate and Energy Minister Jānis Vitenbergs, three Latvian pellet manufacturers signed a memorandum committing to prioritize the domestic market. They pledged to provide enough wood pellets for Latvian households for the upcoming heating season.
The signatories are SIA 'Palleteries' (operating under the brand 'Top Granulas'), SIA 'Latgranula' and SIA 'Baltic Wood Trade'. The voluntary agreement obliges producers to ensure sufficient fuel supplies for the local market, pursue a clear and justifiable pricing policy, and make consumers' energy security a priority. The minister has invited other companies to join the initiative.
Latvia is one of the largest wood pellet producers in the European Union. Approximately 40,000 households, or up to 5% of all households in the country, use pellets for heating, consuming around 200,000 tonnes per year. In recent years, geopolitical developments, supply disruptions and higher demand in Europe have pushed prices up and at times limited availability for Latvian consumers.
Vitenbergs said Latvia produces enough pellets, so the domestic market must be supplied first and households should have access to fuel. He noted that these are the first producers to demonstrate responsibility for energy security. In addition, the ministry has asked SIA 'Latvijas Valsts meži' to increase the availability of biomass feedstock, with a particular focus on local needs, and has urged the Consumer Rights Protection Centre and the Competition Council to step up market monitoring and assess whether any unlawful agreements exist.
