Ignitis grupė - Notification on material event

Lithuanian Government passed a resolution to extend the energy price compensations for consumers

AB “Ignitis grupė” (hereinafter – the Group) informs that on 14 December 2022 the Government of the Republic of Lithuania (hereinafter – the Government) passed a resolution to extend the partial compensation of electricity and natural gas prices for private consumers until the end of the first half of 2023 as well as compensation of the regulatory differences accumulated throughout the second half of 2022. This will have a positive effect on the Group’s working capital.

The Government’s resolution stipulates that residents will receive the compensation if their electricity price exceeds 28 ct/kWh (including VAT), however, the compensation size shall not exceed 28.5 ct/kWh (including VAT). The compensated natural gas part, which is related to natural gas acquisition costs, for private consumers will amount 0.99 EUR/m³ (including VAT).

These partial compensations of electricity and/or natural gas costs will apply from 1 January 2023 until 30 June 2023.

According to the approved 2023 state budget,  EUR 714 million is to be allocated for partial electricity and gas price compensation for residents (including the Group’s customers) by compensating a part of their gas and electricity costs, which have risen sharply.

Pursuant to the Government’s resolution, EUR 146.42 million (including VAT) will be allocated to consumers to compensate the additional component to the price of the electricity transmission service and the additional component to the price of the natural gas distribution service, which are used to evaluate the regulatory differences of UAB “Ignitis” accumulated throughout the second half of 2022. Pursuant to the Government’s resolution, the funds allocated for partial compensation of additional components will be paid to the public supplier and natural gas supply companies in December 2022.
The Group notes that the partial compensation for all private customers who receive energy supply services will be provided directly through their electricity supplier and/or natural gas supply company. State budget funds for partial compensation for private customers will be paid, in accordance with the procedure approved by the Government, to the suppliers by the administrator – AB “Energijos skirstymo operatorius” – and, in turn, the administrator will be paid by the Ministry of Finance of the Republic of Lithuania in accordance with the procedure set out in the agreement for the use of the state budget funds.

The Group has announced about the Government’s plans to reduce energy prices for consumers and the adopted legislation earlier (link).

For more information please contact:

Artūras Ketlerius

Head of Public Relations at Ignitis Group

arturas.ketlerius@ignitis.lt

+370 6 207 6076