LITGRID - Notification on material event

Litgrid has been instructed to reduce the transmission fee, but does not agree with the decision

Vilnius, Lithuania, 2014-10-30 15:51 CET (GLOBE NEWSWIRE) -- The National
Commission for Energy Control and Prices instructed Litgrid to adjust the
prices for electricity transmission services provided to Litgrid customers,
approved by the Litgrid Board, within ten calendar days. The prices should not
exceed the price cap for the transmission service of 1.858 ct/kWh (0.538 euro
ct/kWh), approved by Resolution No. O3-822 of the Commission of 30 September
2014 “On recalculation of the price cap for the transmission service provided
by Litgrid AB for 2015”. Upon Litgrid's failure to comply with this
instruction, the Commission shall unilaterally set the following prices for
Litgrid's electricity transmission services as of 1 January 2015: the average
transmission service price of 1.858 ct/kWh (0.538 euro ct/kWh) and the systemic
services price of 0.32 ct/kWh (0.093 euro ct/kWh). 


Litgrid does not agree with the price cap for the transmission service as set
by the Commission for 2015; on 24 September 2014, after the price cap for
transmission services was announced by the Commission, it filed an appeal with
Vilnius Regional Administrative Court regarding the repeal of Resolution No.
O3-817 of the National Commission for Energy Control and Prices of 30 September
2014 “On the change of the regulation period of the price cap for the
transmission service via high-voltage power grids provided by Litgrid AB” and
Resolution No. O3-822 of 30 September 2014 “On recalculation of the price cap
for the transmission service provided by Litgrid AB for 2015”. According to
Litgrid, unlawfully extending the 2011-2013 regulation period to the year 2015,
the Commission has not considered the following: a) the essential costs of the
regulated activities of Litgrid for 2015, b) the weighted average cost of
capital (WACC) for 2015, calculated and announced by the Commission, and c) the
provisions of the Description of the Principles of Setting the State-regulated
Prices in the Energy Sector, approved by Resolution No. 1026 of the Government
of the Republic of Lithuania, regarding the asset value of which the return on
investment is calculated. 



         Laura Šebekienė
         Communications Manager
         Ph. + 370 693 65377,
         Email: laura.sebekiene@litgrid.eu