LESTO AB - Notification on material event

Regarding the prices of electricity transportation services and public electricity and their administration procedures and differentiation techniques for 2013

submitted for the consideration of National Control Commission for Prices and
Energy. 

Pursuant to the decision adopted by the National Control Commission for Prices
and Energy on 8 November 2012 to publish information on the prices of
electricity transportation services and public electricity and their
administration procedures as well as differentiation techniques for 2013 on
website www.regula.lt AB LESTO (hereinafter referred to as the Company) hereby
announces the following information. 

The prices of electricity transportation services submitted to the Commission
have been calculated in accordance with the changes of constituent parts of
prices already approved by the Commission for 2013 (see the table below): 

Constituent part of price                        2013    2012    Change   Change
                                                  ct/kW   ct/kW  ct/kWh   ,     
                                                 h       h                %     
1  Transmission service price cap                2.415   2.32    0.095    4.1%  
2  Price of systemic services                    0.942   0.62    0.322    51.9% 
3  Price of public interest obligations (PSO)    1.098   7.04    -5.942   -84.4%
    in transportation activity                                                  
4  Price cap of distribution service via         4.747   4.88    -0.133   -2.7% 
    medium-voltage networks                                                     
5  Price cap of distribution service via         6.219   6.41    -0.191   -3.0% 
    low-voltage networks                                                        
A  Price of transportation service to consumers  9.202   14.86   -5.658   -38.1%
    receiving electricity from medium-voltage                                   
    networks (1+2+3+4)                                                          
B  Price of transportation service to consumers  15.421  21.27   -5.849   -27.5%
    receiving electricity from low-voltage                                      
    networks (1+2+3+4+5)                                                        

                                                        Note: prices exclude VAT

As the distribution networks operator, LESTO provides distribution services via
low and medium voltage networks the price caps of which (constituent parts 4
and 5 of the price) were reduced due to decreasing Company's variable costs.
This change will have no significant influence on the net financial result of
LESTO because the decrease in revenue is equivalent to the decrease in variable
cost. 

The decrease of electricity transportation service price for 2013 is mostly
influenced by the principles of taxation of Public Service Obligations (PSO)
amended by the legal acts. It conditions the lower PSO price collected together
with transportation service as the collection of the major part of PSO price is
transferred to electricity supply service. 

The average of prices of transportation service tariff plans calculated
pursuant to the differentiation technique of transportation service prices
submitted for coordination with the Commission meets the established price
caps. 

The prices of public electricity submitted to the Commission have been
calculated in accordance with the changes of constituent parts of price already
approved by the Commission for 2013 (see the table below): 

Constituent part of price                        2013    2012    Change   Change
                                                  ct/kW   ct/kW  ct/kWh   ,     
                                                 h       h                %     
A  Price of transportation service to consumers  9.202   14.86   -5.658   -38.1%
    receiving electricity from medium-voltage                                   
    networks (1+2+3+4)                                                          
B  Price of transportation service to consumers  15.421  21.27   -5.849   -27.5%
    receiving electricity from low-voltage                                      
    networks (1+2+3+4+5)                                                        
6  Electricity purchase price                    16.433  15.94   0.493    3.1%  
7  Public electricity supply service price cap   0.49    0.44    0.05     11.4% 
8  Price of public interest obligations (PSO)    9.392   -       9.392    -     
    in transportation activity                                                  
Public electricity price cap to consumers        35.517  31.24   4.277    13.7% 
 purchasing electricity from medium-voltage                                     
 networks (A+6+7+8)                                                             
Public electricity price cap to consumers        41.736  37.65   4.086    10.9% 
 purchasing electricity from low-voltage                                        
 networks (B+6+7+8)                                                             

                                                        Note: prices exclude VAT

In the public supply activity, Company's net income is conditioned by public
electricity supply service price cap (constituent part 7 of the price) which
was increased due to lower amount of electricity planned to be sold to
consumers. This change will have no significant influence on the net financial
result of LESTO. 

The increase of public electricity price caps for 2013 are mostly conditioned
by the approved higher PSO price the major part of which is collected via
suppliers of electricity and increased purchase price of electricity. 

The average of prices of public electricity tariff plans calculated pursuant to
the differentiation technique of public electricity prices submitted for
coordination with the Commission meets the established the public electricity
supply service price and public electricity price caps. 

The final prices of electrical services to be valid in 2013 shall become clear
no later than on 30 November 2012 upon Commission's decision to publish them.
LESTO will inform on the approved prices and tariffs in accordance with the
procedure established by the laws. 

This notice is deemed non-confidential.


         Representative for Public Relations Ernestas Naprys, tel. (8~5) 251
4516