Valainis proposes state takeover of Riga municipal heating utility shares

Economy Minister Viktors Valainis has proposed that the state take over the shares of Rīgas siltums currently owned by Riga City Council. In his view, the heating utility needs an owner whose primary focus is lowering heating bills for Riga residents, efficient management and long-term investment. He notes that the company currently has several owners, but none of them carries full responsibility.

Valainis argues the state has already demonstrated its ability to achieve lower heating costs. He points to the Economy Ministry's involvement in the company's governance, which helped prevent the initially planned sharp rise in the heat tariff. In 2025, the tariff was reduced by 70%. This experience, he says, shows the state should take full responsibility for the company.

The proposed ownership and management structure would allow decisions to be made significantly faster, investments to be planned more efficiently, and the heating infrastructure to be modernised. It would also help cut the company's costs, which in the long run would mean lower bills for Riga residents. The minister stresses that what matters to residents is not who attends shareholder meetings, but that they do not overpay for heating. If the state can manage the company more efficiently and reduce costs, it should take on that responsibility.