While managing and maintaining apartments, we have noticed that utility payment amounts have increased recently.
We suggest understanding the reasons!
As is known, in November 2021, Europe experienced high inflation (4.9%). This is the highest indicator in recent times.
At the same time, oil prices are increasing, and there is insufficient capacity for electricity production in the Baltic and Scandinavian countries.
The situation was aggravated by cold weather in November.
As a result, consumer prices in Latvia rose by 7.5% (comparing November 2021 and 2020). Fuel prices increased by 39%, natural gas by 38%, electricity by 24%, and heating tariffs by 26%.
On average, the maintenance of real estate became 15% more expensive, and this is the largest increase since 2009.
Despite all these circumstances, there is also good news.
First, experts believe that November was the "peak" of inflation (in Europe), and prices will not rise further.
Second, the gas purchase prices for the next year are already known, and they are lower than current prices.
Third, the Latvian government is considering reducing VAT on electricity (currently, 21% of your electricity bill is VAT).
And finally, economic indicators suggest that along with rising prices, wages are also increasing. Therefore, active working families will be able to pay their bills.
From a rental perspective, landlords can help their tenants (if such a request is made), for example, by reducing rental payments during the heating season!