Minimise your energy costs!

Military action by the US and Israel against the Iranian regime in recent days has raised the issue of electricity price stability. Although the conflict is taking place far from Latvia, such events are quickly reflected in electricity markets. Therefore, the most important question at the moment is whether the drop in electricity prices at the beginning of March will turn into a new price record caused by rising natural gas prices.

Last February was marked by historically high consumption for this month in the Latvian electricity market, according to information compiled by the energy company Enefit. Due to cold weather conditions, electricity demand reached 690 GWh, which is 14% higher than the average February figure for the last ten years. The high demand was also reflected in the price of electricity on the exchange – in February, the average price in Latvia reached 15.5 cents per kilowatt-hour, making it the most expensive February in the history of the exchange.

Last January, prices on the Nord Pool electricity exchange reached record highs, with the average price on the Latvian electricity market rising by 82.8% compared to December and reaching 15.3 cents/kWh. Information compiled by the energy company Enefit shows that this was the most expensive January ever, due to cold weather conditions, which not only rapidly increased consumption but also hampered energy production. Previously, such a sharp rise in electricity prices at the beginning of the year was only recorded during the energy crisis in 2022, when the average price of electricity in January rose to 14.4 cents/kWh.