"Rīgas satiksme": stable results in financial year 2013 : Current information : Rīgas satiksme

Back to list Print 2. Oct. 2013

"Rīgas satiksme": stable results in financial year 2013

Regardless of substantial increase in several expenditure items, after receiving 7 M lats in subsidies from Riga City Council, "Rīgas satiksme" plans to conclude the year 2013 with stable financial results. The company plans in 2013 a total turnover of LVL 103 M, which consist of LVL 63.29 M paid in subsidies by Riga City Council, LVL 3.64 M paid by the state and the company’s own incomes.

Despite the fact that "Rīgas satiksme" has managed to cut significantly its administrative expenditures, while ensuring an unchanged service volume (the number of runs has not changed, but the number of carried passengers is even growing), the total maintenance costs of public transport have grown since 2008. For example, expenditures on electricity have grown since 2008 by LVL 0.9 M, on spare parts and materials by LVL 2.2 and on fuel by LVL 3.4 M. The subsidies paid by Riga City Council also cover the growing VAT on public transport services, which has grown from 5% to 10%, and later to 12% (LVL 2.5 M a year).

Public transport maintenance costs in 2009 – 2013:

Item	2009	2010	2011	2012	2013
Electric energy	3, 951, 776	3, 966, 194	4, 087, 853	4, 203, 722	4, 646, 100
Fuel	6, 224, 740	7, 418, 144	8, 667, 559	9, 730, 779	9, 594, 351
Spare parts and materials	7, 379, 953	6, 455, 352	7, 257, 129	8, 933, 270	10, 487, 529
Administrative costs	3, 366, 469	2, 791, 214	2, 136, 430	2, 036, 851	2, 112, 177

The charts below show changes for major public transport maintenance cost items:

The approved "Rīgas satiksme" budget for the year 2013 included a Riga City Council subsidy in the amount of LVL 64.85 M, of which LVL 51.5 M were allocated at the beginning of 2013, LVL 4.79 M in the summer of 2013, but the remaining LVL 7 M are due to be allocated at the next Riga City Council session early this month. The procedure of paying subsidies in parts was introduced several years ago and is accepted in the company’s budget.

It should be reminded that in the last six years Riga City Council has increased its subsidies, because the state has cut its subsidies paid to public transport almost three times, and also because Riga city has significantly expanded the categories of passengers entitled to using public transport free of charge or with various discounts. The table below shows the amount of subsidies allocated to Riga public transport in 2008 – 2013:

Year	Subsidies of Riga City Council (M LVL)	State subsidies (M LVL)	Total subsidies (M LVL)	Profit/loss in year under review (M LVL)
2008	47.7	10.86	58.56	5.11
2009	51.49	10.69	62.18	0.67
2010	47.12	4.43	51.55	-2.06
2011	52.65	4.08	56.73	-3.19
2012	57.75	4.47	62.22	-5.48
2013	63.29	3.64	66.93	-1.56

The subsidies paid by Riga City Council cover the free transportation of several categories of passengers:

non-working pensioners, liquidators of consequences of the disaster at Chernobyl nuclear power plant and disabled persons of group 3 with impaired vision (3.5 M lats since September 2010);
school pupils (3.2 M lats since September 2012);
students of vocational schools and disabled persons of group 3 (1.3 M lats since March 2013).

For more information about the services provided by "Rīgas satiksme", public transport routes and schedules, types of tickets and other news, please visit our webpage at www.rigassatiksme.lv, social networks "twitter", "facebook", "draugiem.lv" or call our toll-free information phone 80001919.