Electricity Outage Compensation for Businesses: What the 72-Hour Rule Actually Covers

Businesses left without electricity for more than three days due to severe weather will be entitled to a reduction in their electricity bill. However, the new mechanism is considerably narrower than the word “compensation” might suggest.

What is changing?

The Latvian Cabinet of Ministers has approved a compensation principle for weather-related electricity outages lasting longer than 72 hours, provided that the Latvian Environment, Geology and Meteorology Centre has issued at least a yellow weather warning for the affected region or the entire country.

The measure applies to both households and legal entities whose properties are connected to the AS “Sadales tīkls” distribution network.

Previously, compensation was available for unplanned outages exceeding 24 hours, but the mechanism did not apply during periods covered by at least a yellow weather warning. The new 72-hour threshold closes this gap.

What does the business actually receive?

The fixed component of the electricity distribution charge—the charge for maintaining the connection—will not be applied for the relevant billing period. This is a bill adjustment rather than a separate cash payment.

According to the government’s announcement, eligible users are identified through the distribution operator’s systems and the adjustment is applied automatically. Businesses should nevertheless check the following invoice and contact the operator if the adjustment is missing.

What is not covered?

The measure does not compensate a business for its actual operational losses. It does not cover:

• lost profits or cancelled sales;
• production or service downtime;
• spoiled stock, raw materials or food products;
• generator rental, fuel or other emergency costs;
• damage to equipment following a power disruption.

For a business suffering substantial downtime losses, the waived fixed charge may represent only a small fraction of the total financial impact.

What should businesses do?

1. Record the beginning and duration of the outage and retain operator notifications.
2. Keep evidence of spoiled goods, downtime and additional expenses.
3. Check whether the insurance policy covers business interruption, stock damage and external power outages.
4. Identify critical equipment and assess the need for a generator, UPS or another backup power source.
5. Review the next invoice to confirm that the fixed charge has been removed.

Frequently asked questions

Does the compensation apply to legal entities?

Yes. The approved principle covers both households and legal entities.

Will the business receive compensation for lost profits?

No. The measure only removes the fixed component of the distribution charge. Other losses must be assessed separately, including under the terms of the company’s insurance policy.

Does every outage lasting 72 hours qualify?

For weather-related cases, the outage must exceed 72 hours and at least a yellow weather warning must have been issued for the affected region or the whole of Latvia.

Is an application required?

Under the announced procedure, AS “Sadales tīkls” identifies eligible users and applies the adjustment automatically. Businesses should still verify the invoice.

Sources: Cabinet of Ministers of Latvia; Ministry of Climate and Energy. Information updated on 2 September 2026.