The supply of thermal energy is a regulated public service in Latvia; however, a regulatory “threshold” is taken into account.
The small heating supply systems are not regulated so that an additional administrative burden is not imposed on thermal supply companies which could also increase the costs and tariffs of thermal energy. The supply of thermal energy is regulated up to the boundary of ownership with a user; usually it is up to the input of a heating main into a building. Production of thermal energy, transmission and distribution of thermal energy, as well as the trade of thermal energy are regulated in the sector of thermal energy supply.
The use of thermal energy inside buildings is not a regulated service.
The service of thermal energy supply is regulated if the total amount of thermal energy exceeds 5000 MWh/year.
At present, the services of heat supply provided by ~ 100 companies (the number is variable) are regulated in Latvia.
The end-tariff for users is regulated in 62 urban areas. The volume of the regulated heat supply service is ~ 93% of the aggregate market of thermal energy supply in Latvia. The volume of the regulated heat supply market in Latvia is ~ 5.5 TWh or ~ 240 million LVL.
More information is available in Latvian.