LITGRID - Notification on material event

Regarding the opinion of the Audit Committee

Lithuanian electricity transmission operator LITGRID AB (company code 302564383, registered office address Karlo Emilio Gustavo Manerheimo st. 8, Vilnius, Lithuania), informs that on 16^th December 2021 the opinion of the Audit Committee of the holding company UAB “EPSO-G” was received on the planned transactions with the related party AB “Ignitis gamyba”:
- Tertiary active power reserve purchase and sale agreement (hereinafter referred to as the “Tertiary Reserve Agreement”);

 - Isolated electricity system work service purchase and sale agreement (hereinafter referred to as the “Isolated Operation Service Agreement”) (hereinafter all together to as the “Transactions with related party”).

On 16^th December 2021, the Audit Committee of UAB “EPSO-G” considered the Transactions with related party and adopted the following decisions by means of a survey:

1. After evaluating all the submitted information of LITGRID AB, the Audit Committee of UAB “EPSO-G”, in accordance with Article 37² of the Law on Companies of the Republic of Lithuania, gives an opinion on the planned Tertiary Reserve Agreement:

1. The conclusion of the Tertiary Reserve Agreement is in line with market conditions as a public auction was held prior to the conclusion of the Tertiary Reserve Agreement and the one of the auction winners (AB “Ignitis Gamyba”) was capped by the resolution of the National Energy Regulatory Council and the upper limit of reserve power provision service price was set for 2022;
2. Tertiary Reserve Agreement is fair and reasonable to all shareholders of LITGRID AB taking into account the objective necessity of concluding the Tertiary Reserve Agreement and the reasonableness of the pricing of the Tertiary Reserve Agreement.

2. After evaluating all the submitted information of LITGRID AB, the Audit Committee of UAB “EPSO-G”, in accordance with Article 37² of the Law on Companies of the Republic of Lithuania, gives an opinion on the planned Isolated Operation Service Agreement:

1. The conclusion of the Isolated Operation Service Agreement is in line with market conditions, as the price caps for the Isolated operation services for 2022 have been set for the providers of the isolated operation by the resolution of the National Energy Regulatory Council;
2. The Isolated Operation Service Agreement is fair and reasonable with respect to all shareholders of LITGRID AB taking into account the objective necessity of concluding the Isolated Operational Service Agreement and the reasonableness of the pricing of the Isolated Operation Service Agreement.

The individual authorized by LITGRID AB to provide additional information:
Jurga Eivaitė
Communications project manager
phone: +370 613 19977
e-mail: jurga.eivaite@litgrid.eu