Rising heating costs threaten to affect not only everyday expenses, but also quality of life. In the upcoming heating season, Latvian households will face a significant financial burden – only 30% will be able to pay their heating bills without difficulty, while 67% plan to cut everyday spending, and 3% already expect that they will not be able to pay their bills at all, according to a survey conducted by Citadele bank.
For most households, paying heating bills in the coming season will become a substantial burden on the monthly budget. Only a portion of residents will be able to cover the bills without difficulty, while the majority will have to adjust their daily spending in order to cope with high heating costs.
43% of households plan to reduce expenses on leisure activities, entertainment, or cultural events. One in five expects to cut essential daily spending, including the budget for food, healthcare, and education. These changes may affect everyday quality of life and people’s well-being.
The survey data show that men are more likely to expect being able to pay their bills without problems, while women more often foresee spending restrictions. Older households, especially respondents aged 60 to 74, are the most likely to plan cuts in basic necessities in order to cover their heating bills.
The planned spending limits mean that during the winter months, demand in retail, entertainment, and the cultural sector may fall significantly.
Economist: the rise in the heat energy tariff may create a domino effect in the economy
In Riga, from 1 October heating bills increased due to the heat energy tariff – it rose from the previous 74.17 EUR/MWh to 83.01 EUR/MWh, resulting in an increase of almost 12%.
“This rise in costs is three times higher than the average increase in consumer prices, which in August was 4.1% year-on-year. The increase in the heat energy tariff will directly affect not only a large share of Riga residents, but also businesses that are clients of ‘Rīgas Siltums’, including both major retailers and various service providers. These companies will likely be forced to pass the higher heat energy costs on to end consumers, further negatively affecting household spending,” explains Kārlis Purgailis, Chief Economist at Citadele bank.
K. Purgailis also notes that rising heating costs add to existing public concerns about inflation and the financial situation of households. This is also reflected in data published by the Central Statistical Bureau – although in September business sentiment improved in all areas of economic activity, the consumer economic uncertainty indicator deteriorated significantly, falling to -11.2% compared with 5.8% recorded in August.
Higher heating bills will be reflected in domestic demand and may negatively affect the retail, hospitality, and cultural sectors during the winter months, creating a domino effect throughout the economy.
“An increase in consumption after several quarters of stagnation was observed only in the second quarter of this year. However, the rise in housing-related expenses during the winter months will most likely slow the recovery in consumption. Although a relatively strong overall increase in retail trade turnover was recorded in August, namely 4.3% year-on-year, it can be seen that food retail sales continue to decline. Household difficulties in covering heating costs will prompt residents to cut spending on non-food goods, and this may turn into a broader economic slowdown,” says K. Purgailis. Citadele bank conducted the resident survey together with the research agency Norstat in September 2025, interviewing more than 1,000 Latvian residents aged 18 to 74 online.
Originally published at https://inc-baltics.com/apkures-del-esam-gatavi-vairak-slimot-un-mazak-est/
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