The Latvian Competition Authority (KP) has flagged competition deficiencies in the heat energy procurement market on the right bank of the Daugava River in Riga. This includes concerns over the existing procurement model favoring one market participant and hindering fair competition.

The current procurement model divides heat energy procurement into competitive and monopoly zones, with only one supplier in the monopoly zone, leading to potential pricing issues and lack of equal competition.

KP suggests improvements to the procurement model to enhance efficiency, technology use, and market openness, aiming to provide consumers with affordable heat energy and meet sustainability requirements.

KP recommends gradual market opening and collaboration with regulators and experts to address pricing, technical, and future service issues in the heat energy procurement model.