Latvia’s prime minister open for talks regarding MPC system’s liquidation

RIGA – Prime Minister Māris Kučinskis is prepared to discuss the possible liquidation of the mandatory procurement system, but not for all businesses at the same time.

On Monday, 19 March, Kučinskis mentioned in an interview to LTV Rīta panorama that he is of two minds on this matter, saying that he has heard arguments in favour of the system’s adoption and its liquidation. He sees no future in keeping MPC system alive. Still, he cannot simply take away all permits at once. It is more likely the process will be performed gradually.

The politician reminded that all of Latvenergo’s earned profits will be used to reduce MPC component.

The prime minister added that the government is already busy discussing formation of an expert group to resolve the MPC matter to make things clear. He expects Economy Ministry to handle this matter.

As previously mentioned by Economy Minister Arvils Ašeradens, the government has one last chance to think of ways to liquidate the remains of MPC system. The minister mentioned that his institution will soon reach the limit for restrictions on MPC system. «It is clear that the current MPC funding model is morally bankrupt. Society is no longer willing to accept it. European Union’s energy policy-makers talk more and more about rejection of cross-border restrictions, different support mechanisms and market-distorting subsidies,» said the minister.

He explained that green energy and the planet’s future bot require innovative, effective and far-reaching solutions based on market principles not financed from residents’ wallets.

«This is why I have asked Prime Minister Māris Kučinskis to form a high-level domestic and international expert group to search for solutions and ways to drop the inefficient MPC system and replace it with one that would fit society’s interests for the future,» said Ašeradens.


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