Gaso to assess the effect of gas price growth on consumption in Latvia

The influence of the price of natural gas on consumption may be evaluated after some time, says gas transmission system operator Gaso chairman of the board Ilze Pētersone-Godmane.

She said currently there is information both about multiple legal persons considering restricting production and how residents are trying to save money and reduce costs. State support will play a major role in all this. This is why the real effect from gas price increase may be seen after some time.

When asked when conclusions could be made in regards to the effect of price rise on gas consumption, Pētersone-Godmane explained that there is state support provided to individual consumers. Therefore there are certain doubts if there even is any effect major on consumed gas volumes.

She adds that 95% of gas consumed by households is used for heating, there are so quick solutions to be found in winter, even if someone considers using other forms of heating.

As for manufacturers, she said use of natural gas goes hand in hand with electricity. This is why it is possible there may be companies for which the price leap may turn out fatal.

«This is why I would like to stress that this is not just about natural gas. Energy price leap may turn out more severe because it had commenced some time ago. Additionally, while it is possible to reduce heating intensity at least temporarily, reducing electricity consumption is impossible for many companies,» said Gaso board chairman, estimating that the conclusion of the heating season in April or May will be the time when it will be possible to estimate changes in consumption volumes.

‘All of us have to overcome the pandemic and price leap. The bad news is that the growth of energy prices coincided with the heating season. This is why it is so tangible. This may also mean a reduction of the transmitted gas volume, but in our perspective these are only short-term fluctuations,’ says Pētersone-Godmane.

Gaso manager notes that it is no surprise gas and nuclear energy have been used as the main source of energy in the EU – natural gas is also a cleaner and more efficient energy resource. This is why no rapid natural gas consumption drop is expected.

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