Operating segments

Generation and Trade

Generation of electricity and thermal energy, electricity and natural gas trade in the Baltic states, and administration of the mandatory electricity procurement process in Latvia.

Distribution 

The distribution service ensures the flow of electricity from the transmission network to consumers. Sadales tīkls AS is the country’s largest distribution system operator and covers approximately 99% of the territory of Latvia. Distribution system service tariffs are approved by the Public Utilities Commission (PUC). 

More information on Sadales tīkls AS webpage www.sadalestikls.lv.

Facts

Data as of 31.12.2021


1939

Founded

3,153

Employees

5

Subsidiaries

4,517 GWh

Electricity output

2,072 GWh

Thermal energy output

59%

Generated from renewable energy


1,065 MEUR

Revenue

72 MEUR

Net profit

3,476 MEUR

Assets

127 MEUR

Investments

Baa2 (stable)

Credit rating


23%

Market share in the Baltics

755,000

Retail customers

6,706 GWh

Retail electricity supply

1,026 GWh

Retail natural gas supply

1,983 GWh

Thermal energy sold


2,606 MW

Installed electrical capacity

92,430 km

Length of distribution lines

5,951 MVA

Transformer capacity

1,797 MW

Installed thermal capacity

Mission. Vision. Strategy

We energize the growth of society!

It is in our hands to take care of our customer today, meanwhile considering the impact on our future generations. We are well aware that natural resources are scarce, thus we are already looking for solutions to handle and utilize them wisely. We want to see a world in which every move is initiated by sustainable energy. We believe that you get what you give – as the energy always transfers from one form to another. Therefore, by transforming the power of nature into energy, we help to start the movement of growth for all of us! With the support of innovation, we make our services sustainable and suitable for everyone's needs, encouraging others to change their habits and grow, as well as to stand up for the wellbeing of our society.



Vision

We are the leading sustainable solutions provider in the energy industry.

Mission

We drive the development of the energy industry by providing friendly, innovative and sustainable solutions



WITH HEART

We are open and passionate

WITH MIND

We do the right things and continuously learn

WITH ENERGY

We are brave and persistent

WITH FUTURE OUTLOOK

We do good for the clients and society



Trade

Adding value

By improving existing services and developing new products, Latvenergo with its Elektrum brand becomes the most valuable trader in the Baltics.

Our customer base and satisfaction continues to grow.

Example of results: Elektrum as a strategic leader in microgeneration, electric charging, electrification.

Generation

Green generation

Increasing the generation capacity to such an extent that by 2030 the domestic energy consumption of Latvia would be fully covered by the energy of nature — water, solar and wind.

This will significantly contribute to the energy independence of our country.

Example of results: Implementation/acquisition of domestic and overseas renewable energy projects with 600 MW capacity during the strategy period.

Networks

Delivering safely and efficiently

Reducing the frequency and duration of power outages, ensuring uninterrupted, safe and reliable energy supply.

Developing a smart grid where producers and consumers share information, ensuring smarter energy consumption.

Example of results: Infrastructure for the creation of public electric charging points and microgeneration, preventing more than 200 thousand tonnes of CO2 emissions.

Electromobility

Changing the role of energy

Integrate households and companies generating their own energy using solar panels in the energy market.

Promote sustainable and smart mobility based on a wide electric vehicle charging network throughout the Baltic states.

Example of results: 1,200-1,500 public electric charging ports in the Baltics.

Profitability

Return on equity excluding distribution > 7%

Capital Structure

Ratio between adjusted funds from operations and net debt > 25%

Dividend Policy

Dividend payout ratio> 64%

Credit Rating

To maintain an investment grade credit rating

Organisational structure and governance

Latvenergo Group comprises the parent company Latvenergo AS and six subsidiaries. Latvenergo AS ensures generation and trade of electricity and thermal energy as well as trade of natural gas. Latvijas elektriskie tīkli AS manages transmission system assets, while Sadales tīkls AS ensures electricity distribution to each customer. Elektrum Eesti OÜ and Elektrum Lietuva UAB conduct electricity trade in Estonia and Lithuania respectively. Enerģijas publiskais tirgotājs AS carries out administration of electricity mandatory procurement.  

Liepājas enerģija SIA (51% of shares) ensures generation, transmission, distribution and supply of thermal energy in the city of Liepaja as well as generation of electricity in cogeneration mode. Latvenergo AS also holds 46.3% of the shares in the closed pension fund Pirmais Slēgtais Pensiju Fonds AS, as well as 0.005% of the shares in Rīgas siltums AS.


For more information about the governance of Latvenergo Group, see section  Investors/Corporate governance.

The Management Board of Latvenergo AS

The Management Board of Latvenergo AS was elected  for a five-year term. The Management Board consists of five members: 

Mārtiņš Čakste

Chairman of the management board,
Chief Executive Officer

Dmitrijs Juskovecs

Member of the management board,
Chief Commercial Officer

Guntars Baļčūns

Member of the management board,
Chief Financial Officer

Kaspars Cikmačs

Member of the management board,
Chief Development Officer

Harijs Teteris

Member of the management board,
Chief Operating Officer

The Supervisory Board of Latvenergo AS

The Supervisory Board of Latvenergo AS was elected at the Shareholders' Meeting of Latvenergo AS on 10 June 2020. The Supervisory Board is composed of five members: 

Ivars Golsts

CHAIRMAN OF THE SUPERVISORY
BOARD

Kaspars Rokens

DEPUTY CHAIRMAN OF THE SUPERVISORY BOARD

Toms Siliņš

MEMBER OF THE SUPERVISORY BOARD

Aigars Laizāns

MEMBER OF THE SUPERVISORY BOARD

Gundars Ruža

MEMBER OF THE SUPERVISORY BOARD

Awards




Most valuable company



In the TOP 101 of the most valuable enterprises in Latvia, Latvenergo AS received the award for the most valuable company in Latvia for the 14th time in general and for the 13th time in a row. Latvenergo AS is the only Latvian company in the TOP 10 most valuable companies in the Baltics.





Diamond category in the Sustainability Index


In the Sustainability Index of 2022, Latvenergo AS achieved the Diamond category. Subsidiary Sadales tīkls AS received the Platinum category and special award Innovation leader 2022.




Family-Friendly workplace


Latvenergo AS was granted the status of a Family-Friendly Workplace by the Society Integration Fund.





Several awards in the TOP 500 Companies of Latvia


In the TOP 500 of Latvian Companies, Latvenergo AS was recognised as the most profitable company, the largest EBITDA maker, the largest state-owned company, and the largest company in the energy sector. Sadales tīkls AS was recognised as the second largest company in the energy sector and the third largest state capital company.




Sustainable brand


In the European Sustainable Brands Index, the brand Elektrum of Latvenergo AS was recognised as the second most sustainable brand in Latvia.




The Most Attractive Employer


Latvenergo AS was recognised as one of the most attractive employers in Latvia in the Baltic Employer Image Survey of Kantar. In the Fontes study on remuneration trends in Latvian companies in 2021, Latvenergo AS received 4th place among large companies in the category Fair Payer of 2021.




Golden awards to the fleets of Latvenergo Group and Sadales tīkls AS


For the third year in a row, both the fleet of Latvenergo Group and the fleet of specialised equipment of Sadales tīkls AS received the Gold Award in the competition for the Safest Company Fleet of 2021.

History

1939

In October, the first Daugava hydropower plant – Ķegums HES was launched, while in December the Latvian State President and Prime Minister K. Ulmanis signed the Law on Establishing the State Electricity Enterprise “Ķegums”. Latvenergo Group considers this date as its birthday.

1955

To ensure centralized supply of thermal energy to Riga in the cold months, the Riga TEC-1 started operation. The 2nd phase was completed in 1959, achieving an electric capacity of 129 MW.‎