Latvia to introduce stricter restrictions to limit MPC permit fraud
On 10 April, Cabinet of Ministers support Economy Ministry’s prepared proposal to increase monitoring of manipulations of mandatory procurement component permits.
The government supported Economy Ministry’s amendments in two sections: rules for production of electricity and price-calculation when producing electricity in co-generation and rules for production of electricity using renewable energy resources and price-calculation.
The goal of those rules is improving state support for end consumers of electricity, ensuring more efficient use of electricity and predictability of costs, as well as introducing stricter control mechanisms for CHP plants and requirements for provision of support. To ensure accurate record keeping of electrical energy, heating energy and fuel, Economy Ministry proposes adopting rules to perform records at least once a day for produced electricity and heating energy and at least once a month for fuel used in energy production. This data is to be stored for at least five years. Rules also state that CHP plans that have not yet commenced energy production have to reach electricity production output of at least 50% of their planned volume within the term provided for the issue of an MPC permit. Amendments will help reduce period of time provided to fix discovered problems – existence of tax debts. Payments of debts are to be performed within three months’ time. Restoration of compliance with energy efficiency criteria is to be performed within six months instead of nine. To ensure regular monitoring of the situation with payment of taxes, Economy Ministry will perform inspections once a year and provide warnings if debts exceed EUR 150.
To make control mechanisms more effective, it is planned to clarify requirements in relation to cooperation with the control group, which performs inspections at power stations. To prevent businessmen’s possible avoidance of control measures at power stations, Economy Ministry will be able to cancel decisions that provided the right to sell electricity as part of mandatory procurements. Amendments also mention that a limit of five warnings for a five-year period will be permitted. If the businessman continues breaching restrictions, authorities will be able to take away their right to sell electricity as part of mandatory procurements.