Latvian government commences work on MPC termination

To prepare a report on mandatory procurement component and subsidized electricity system’s influence on national economy for 1 August, a work group responsible with cancellation of MPC payment system gathered for a first meeting, as reported by Economy Ministry.

The work group is ordered to do the following before 1 August 2018:

-assess MPC and subsidized electricity system’s influence on national economy;

-prepare proposals for cancellation of MPC payment system;

-prepare proposals for support of existing support recipients after termination of MPC system.

During the first meeting, the work group discussed the problems surrounding MPC system, the mandate provided by the Cabinet of Ministers, future steps for its realization, as well as matters associated with organization of the group’s work.

Members of the work group also discussed matters regarding the typology of power plants that receive MPC support, this system’s created costs for residents and the history of its formation, Economy Ministry adds.

When planning the work group’s activities for the next several months, its representatives decided to develop proposals and submit them to the Cabinet of Ministers by 1 August. In May the work group will review MPC system’s macroeconomic aspects. In June the work group plans to discuss the legal aspects of MPC system’s termination and discuss possible scenarios. In July the work group will evaluate possible scenarios and discuss power plants’ continued operation model after termination of MPC system, as confirmed by Economy Ministry.

As it is known, the Cabinet of Ministers decided to form a work group in order to terminate MPC payment system.

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