Energijos Skirstymo Operatorius AB - Notification on material event

Regarding Court Decision

tEnergijos Skirstymo Operatorius AB, identification code 304151376, registered office placed at Aguonu str. 24, Vilnius, Republic of Lithuania. The total number of registered ordinary shares issued by company is 894 630 333; ISIN code LT0000130023.  

On the 20 June, 2017 Supreme Administrative Court of Lithuania (hereinafter – SACL) rejected Company’s appeal and Vilnius Regional Administrative Court decision dated 26 January, 2016 by which Vilnius Regional Administrative Court dismissed the Company’s complaint asking to repeal the Resolution No. O3-947 “Regarding scheduled inspection of LESTO AB” of the National Commission for Energy Control and Prices” (hereinafter – the Commission) of 19.12.2014, including Resolutions No. O3-944, No. O3-945, No. O3-946 adopted on its basis and the Commission’s Resolution No. O3-960 of 23.12.2014 and to obligate the Commission to assess income not received by the Company and additional expenses sustained due to illegal upper price limits determined during the period of effect of these resolutions when determining the upper prices limits for the Company’s prices for the next periods.    

The SACL stated that does not perform the economic evaluation of the Company’s income and expenses and this falls within the competence of the Commission. According to the SACL the above mentioned Vilnius Regional Administrative Court decision is justified and legitimate.   The SACL decision is final and not subject to appeal.  

The Company would like to remind that disagreed with the cost inspection report of the Commission dated 19 December, 2014. In Company’s opinion, National Commission for Energy Control and Prices improperly conducted the cost inspection and supervision of activities of economic entities, violated the principles of public administration, improperly counted the regulated public supply activities costs and actually attributed ones.  

Please note that the company's financial results will not be affected by the Court's decision.

         Head of Communications Division Martynas Burba, tel. (8~5) 2514516.