Latvian Pensioners to Reclaim Unlawful Electricity Procurement Component (OIK) Payments

Thousands of Latvian pensioners are set to possibly recover notable sums following a new cooperation agreement designed to reclaim unlawfully collected mandatory electricity procurement component (OIK) payments. The Latvian Pensioners’ Federation (LPF) has partnered with legal association Tiesiskums.lv to facilitate the recovery process, offering a chance for many to reclaim approximately €2,000, nearly half a year’s pension.

Agreement Aims to Rectify Unlawful Charges

The agreement enables any Latvian resident or entrepreneur who paid the OIK to apply for reimbursement until October 1st.Attorney fees will be deducted only from the recovered amount. Participation involves joining the claim by signing the cooperation agreement through the Tiesiskums.lv portal.

Did You Know? The European Commission declared the OIK unlawful back in 2017, yet Latvian citizens continued to pay it for six more years.

LPF Chairwoman Aija Barča hailed the initiative by Tiesiskums.lv as a considerate effort to rectify injustices against Latvian citizens, especially seniors, low-income individuals, and people with disabilities. Sworn attorney and Doctor of Law Artis Stucka, representing Tiesiskums.lv, emphasized that the OIK scheme was contrary to public interests and the principles of a democratic legal state from its inception.

Strengthening Rule of Law and Public accountability

Barča stated that demanding OIK reimbursement also demands accountability from public officials for their decisions. The cooperation commits both parties to support OIK payment recovery and strengthen the rule of law in Latvia, ensuring greater accountability in public management. The agreement also aims to enhance public officials’ responsibility and empower individuals to seek compensation for damages, supporting the values enshrined in the Latvian Constitution human dignity, freedom, democracy, equality, and human rights, especially protecting pensioners’ rights and other vulnerable groups.

Under the agreement, the LPF will inform its members about the OIK recovery initiative and participate in joint initiatives related to strengthening public accountability and protecting citizens’ rights. Tiesiskums.lv will organise seminars, discussions, consultations, and forums on OIK recovery and on strengthening the rule of law and public accountability.

Application Process and OIK Background

The Tiesiskums.lv application process utilizes a collective action model. Once registered on the Tiesiskums.lv website and the agreement is signed electronically, the association will request detailed billing facts from electricity providers to calculate the refund due to each claimant.OIK recovery agreements can also be signed in person at regional forums across Latvia. Those unable to sign electronically should register on the Tiesiskums.lv website to allow attorneys to plan in-person signing events in various regions and cities.

Pro Tip: register on the Tiesiskums.lv website even if you plan to sign in person, to ensure you receive updates on local signing events.

Introduced in 2005, the OIK scheme was ruled unlawful by the european Commission in 2017, as it constituted illegal state aid to a select group of energy producers, violating Article 108(3) of the Treaty on the Functioning of the European Union. The Saeima called for an end to the “unjust regime” in 2019, but the OIK regime was only terminated on January 1, 2023.

Latvian Pensioners’ Federation and Tiesiskums.lv

The Latvian Pensioners’ Federation (LPF) is a non-governmental organization uniting over 150 pensioners’ organizations across Latvia. Of latvia’s 440,000 pensioners, approximately 22,000 are active within the LPF.

Tiesiskums.lv brings together Latvian lawyers and individuals aiming to promote the rule of law and accountability in public administration. The association seeks to increase responsibility among public officials, encourage more efficient use of public funds, and launch civic initiatives to help citizens recover damages caused by violations of human and basic rights. Recovering the unlawfully collected OIK payments is the association’s first organized initiative.

What’s Next for Latvian Pensioners?

With the cooperation agreement now in place,Latvian pensioners have a clear path to potentially recover funds unlawfully taken from them. The success of this initiative could set a precedent for future actions aimed at holding public officials accountable and protecting citizens’ rights.

What impact will this reimbursement have on the lives of Latvian pensioners? How can other countries learn from Latvia’s experience in addressing unlawful charges?