Referring to the decision of “Liepājas metalurgs” board to stop paying mandatory procurement component, the management of JSC “Valmieras stikla šķiedra” notes that the electricity field in the Latvia has to be adjusted eventually, so the activity, further development and growth of manufacturing companies wouldn’t be in damage.
“We haven’t thought about doing similar like “Liepājas metalurgs”, we have always been correct in paying electricity and we will do it further, but still the overall situation is serious and solutions are required,” says the President of JSC“ Valmieras stikla šķiedra” Andris Oskars Brutāns.
The payment of mandatory procurement component has grown thrice. In this year it increased by 54 percent over the previous year, and the megawatt hour of so-called green energy costs 18,00 Lats. “This price increase for one of the most important costs of production is very rapid, unpredictable and large and in general it damages energy-intensive business’s activities and progression. If at 2012 we have paid almost 1 Million Lats for the mandatory procurement component, this year we will pay one and a half Million Lats. This doesn’t promote our competitiveness in the markets,” notes Andris Oskars Brutāns.
“I think this is not a normal situation that in Latvia the burden of the green energy and energy produced by cogeneration plants with fossil fuels is one of the highest in the European Union. It inhibits the development and don’t allow to think about the raising the salaries in the branch, as well as to invest and to do other activities for competitiveness. Due to this indigested policy we are there where we are – one of the poorest countries in the European Union with the tendency of emigration looking for a better life abroad.”
“The disorganized area may have a significant impact on the future of JSC “Valmieras stikla šķiedra”. Our shareholders are actively monitoring the processes in the country and the uncertainty about the electric energy prices and policy may result in the denial of further investments in the company’s development. In an adverse business climate are the actors trying to find reasons for changing the situation and, if we think deeper about it, it is easy to bring the textile equipment to another country and to open another factory. After the service life of the glass melting furnace can this factory, having 50 years experience, produce outside Latvia taking their specialists with it,” A.O. Brutāns explains the seriousness of the situation.
“This is a neglected problem,” thinks the President of JSC “Valmieras stikla šķiedra”. He notes that at the moment there are two possibilities to improve the situation: “Firstly, the existing support payments have to be reviewed and revised otherwise we will be the ones who pays the most in the Europe. Secondly, the time period for paying mandatory procurement component for production of the green energy and energy produced by cogeneration plants with fossil fuels should be definite. It should be provided that the mandatory procurement component is paid till a definite time period and the green energy producers develop as independent and competing market players. Otherwise is the mandatory procurement component a large tax with unlimited duration for the companies without the clarity of the sums for future accounts.”
JSC „Valmieras stikla šķiedra” marketing project manager
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