Conexus submits a natural gas transmission system tariff proposal
“Conexus Baltic Grid” (Conexus) submitted a natural gas system service tariff proposal to the Public Utilities Commission on June 15, 2026, for the regulatory period from October 1, 2026, to September 30, 2031.
The tariff proposal has been developed by compiling all technologically and economically justified costs necessary to ensure the maintenance of the natural gas transmission system, its safe and uninterrupted operation, and the efficient provision of transmission system services. By allocating the aggregated costs to the projected natural gas consumption and expected reserved capacity for the next regulatory period, Conexus has calculated the fee for the use of the exit point for supplying Latvian users at 0,003432 EUR/kWh. Compared to the current fee of 0,003205 EUR/kWh, the resource-based tariff increases by 0,000227 EUR/kWh, or 7,1 %, in the first tariff period. Starting from the second tariff period, a capacity-based annual fee of EUR 0,003432 EUR/kWh/hour (reference price) will be applied. The following coefficients will apply to short-term capacity products: 1,1 (quarterly capacity products), 1,25 (monthly capacity products), 1,5 (daily capacity products), 1,7 (within-day products). For biomethane injection, a tariff is set with a reference price of 0,000395 EUR/kWh/hour. The same coefficients for short-term capacity products apply to biomethane injection as for the fee for using the exit point for supplying Latvian users and for the entry and exit tariffs of the unified market zone.
Transmission system costs for the next five years, on average per year, are projected to increase by 24,4 % compared to the current regulatory period. The largest share - approximately four-fifths - of the planned cost increase is driven by a rise in the weighted average cost of capital, determined in accordance with the Methodology for calculating and accounting capital costs. As of October 1, the applicable rate will change from 2,72 % to 5,82 %. The weighted average cost of capital applied in the current transmission tariffs was set back in 2022, when EURIBOR rates were negative.
Publication in “Latvijas Vētnesis”