Riga's heating utility warns cheap gas era is over as tariffs may rise up to 30%
Riga's district heating company Rīgas siltums says the era of cheap natural gas has ended and plans five years of investment in alternative energy sources, while heating tariffs in Riga could rise 20-30% from December.
Kalvis Kalniņš, board chairman of AS Rīgas siltums, told the TV24 programme “Uz līnijas” that the company has drawn up a five-year investment plan aimed at reducing dependence on natural gas. The plan includes investments in electrode boilers, biomass energy sources and heat accumulation.
Kalniņš said natural gas prices have seen their second-largest jump in a decade this year, surpassed only by the 2022 crisis. Since the current tariff was calculated, the exchange price of natural gas has risen from around 33 to 80 euros per MWh, while biofuel prices have increased by 43%.
Tariff could rise by up to 30%
Due to rising energy costs, Riga's heating tariff could increase by 20-30% starting in December, and the company aims to prevent a larger rise. The current tariff stands at 83.01 euros per MWh, though it will drop to 80.76 euros per MWh from October 1. The Public Utilities Commission expects to determine a more precise tariff in early October, as fuel cost components are still being assessed.
Over nine months, the company supplied customers with nearly three million MWh of heat energy, a third of which it produced itself using roughly equal shares of biomass and natural gas.
Ready for the season
Kalniņš confirmed the heating system is prepared for the upcoming season, with building heat substation inspections reaching 75.2% completion and customer payment discipline at 97.6% over the past 12 months. As an already implemented solution, the company cited a 49-megawatt electrode boiler at the Imanta heating plant, which has produced 23,000 MWh of heat energy since late 2025.
In the long term, Rīgas siltums plans to rely more on local energy resources, electrification and heat recovery, including exploring the use of waste heat from data centers. The group's profit rose sharply last financial year to nearly 20 million euros, even as revenue declined slightly.
