The main business activities of the
company are as follow: heat energy
produced at its own heat sources and the
heat energy purchased from other
producers; the heat energy distribution,
transmission and sales; the carrying out
repairs for the district heating equipment,
also its installation and adjusting;
customers district heating equipment
servicing and consulting; providing other
services to customers.

The company produces heat at 5 district
heating plants, 14 gas-fired boiler houses,
1 heavy fuel oil (mazut)-fired boiler house
and 81 solid fuel-fired boiler houses with
the total capacity of 1,192 MW which is
about 28% of the demand. The rest amount
of heat energy is purchased from other
producers. These producers are
combined-heat-and-power plants TEC-1
and TEC-2 owned and operated by the joint
stock company in privatisation
“Latvenergo”.The district heating network
system consists of 5 network regions, 3 of
them are located on the right bank of the
Daugava river, 2 of them - on the left bank.
The total network length is 999 km, 742 km
of which is owned and operated by “Rîgas
siltums”. Forty percent of the network is
over 25 years old, this has led to high
energy losses.

To support the production, 19 services and
departments have been organised.

Altogether 1.760 persons are employed in
the main production, 160 of them are
seasonal workers. The buildings internal
systems service is carried out by 500
employees. These employees are
employed under the concluded contracts.

About 35% of the main production
employees are involved in heat energy
production, 40% - in heat energy supply,
distribution and sales and 25% - in sales
departments and in customers service.

The state joint stock company supplies heat energy to more than 2/3 of Riga's
inhabitants. They consume 82% of the total
amount of heat energy. The average annual
heat energy sales totals more than 4.26
million MWh. The consumers connected
load in 1997 was 2,200 MW. A slow
decrease of it is to be expected until the
year 2001, but in the nearest future, until the year 2010, it is forecasted that the heat
load will increase for 4 to 10%.

The average annual net turnover of the
company is 66.44 million Lats. Due to the
poor solvency of the customers as well as
other economic problems in the country the
heat energy sales tariff has been approved
at a level that doesnít cover all the
necessary costs. This has resulted in
limited funds in the companies budget for
new technologies and equipment needs as
well as depreciation of assets.

To improve the economic and financial
situation of the company, active measures
have been taken to reduce growth of the
total consumers debt to the company and to get back this profit.

The company is now working on the
long-term district heating rehabilitation
program and looking for strategic investors.
It is legitimate, starting from the year 1999,
to base budget revenues on economically
reasonable tariffs. This will allow the
company to get all the needed expenditures back and to open a guaranteed long-term credit line until the year 2010.

In order to upgrade the equipment
resources the company has established
contacts with several companies abroad.
To ensure a proper metering of the heat
energy consumption, heat meters
purchased from Danish KAMSTRUP
ENERGI have been installed. To ensure the
control of hot water at block substations, the hot water temperature controllers from IWK REGLER und KOMPENSATOREN GmbH have been purchased. Individual
substations are improved with direct action
hot water controllers from Danish
DANFOSS. During the last years Swedish
preinsulated district heating pipes have
been used during the construction of the
piping systems. The company has
established contacts also with WILO
PUMPEN, BEWAG, PENTAGRA OY,
EESTI ENERGI, etc.

Using a grant from the Swedish
government, FVB Fjarrvarmebyran ab is
preparing the Riga district heating
rehabilitation project.

To accelerate the process of collecting and
interpreting primary information and to
improve its quality, a modern information
system is being implemented. The company plans, step by step, to also start the heat energy production from cogeneration.

Riga District Heating
Cesu str. 3
LV-1012 Riga
Latvia

Tel. + 371 701 7359
Fax + 371 701 7363