On Thursday, 28 May, the Saeima deliberated on the Final Report of the Parliamentary Investigative Committee on the causes of increased district heating costs in Riga.
The Committee sought ways to improve the efficiency of district heating and the management thereof in the capital, to prevent cost increases, and to mitigate future energy security risks. It also prepared tasks and recommendations for the development of a national thermal energy strategy, as well as for the efficient use of cogeneration systems and CHP infrastructure to reduce costs and emissions, ensure sustainable energy supply, and address shortcomings identified in the past.
The Parliamentary Investigative Committee concluded that an absurd situation had developed in Riga over a prolonged period: while surplus heat produced by CHP plants was not used and was released into the atmosphere, more expensive heating was simultaneously procured from other producers. According to the final report, an estimated EUR 62 to 79 million were wasted over several years of this kind of operation.
The Committee notes that this situation was mainly caused by an incomplete market model that effectively prevented the use of the cheapest available heating. The existing system allowed producers to maintain prices near the tariff ceiling set by JSC “Latvenergo”, thereby increasing costs for consumers. At the same time, this led to more CO2 emissions.
The Committee also identified significant shortcomings in the governance of JSC “Rīgas Siltums”, including a lack of clear responsibility and competence, potential conflicts of interest, and questionable expenditure. It further concluded that the responsible authorities had been aware of the situation but had failed to act in a timely manner.
In its final report, the Parliamentary Investigative Committee calls for a substantial review of the district heating system to ensure that residents always have the cheapest available heating, including by establishing a clear obligation to prioritise the use of surplus heat and heating produced in cogeneration and surplus heat. Parliamentarians also stress the need to improve market regulation and tariff policy, to strengthen the role of the regulator in protecting consumer interests, to eliminate market distortions and conflicts of interest, and to improve corporate governance and accountability.
The report urges ensuring transparent access to data, more efficient infrastructure management, and timely capacity planning to prevent resource waste and strengthen energy security. The Committee also emphasises the need to develop a clear long‑term district heating strategy, take timely decisions on the future of CHP plants, and assess possible violations, including the actions of responsible officials.
The Parliamentary Investigative Committee was established by the Saeima on 6 November at the request of 37 Members of Parliament to examine the causes for the increase in district heating costs in Riga and identify future energy security risks. The Committee was chaired by Andris Kulbergs and included MPs Kristaps Krištopans, Kaspars Briškens, Jurģis Klotiņš, Valdis Maslovskis, Uģis Rotbergs, and Amils Saļimovs. The Committee held a total of 19 sittings.
The Constitution of Latvia stipulates that the Saeima must appoint a parliamentary investigative committee for a specific purpose, if requested by at least one third of the members of parliament.
Saeima Press Service