On 19 December, 2014 the National Control Commission for Prices and Energy (hereinafter - Commission) adopted a decision on LESTO AB (hereinafter – LESTO) due diligence of the period 2011-2013, by which approved the act of scheduled inspection and acknowledged the costs of LTL 60,871 million (of EUR 17,629 million) as unjustified costs. The Company does not agree with the decision of the Commission and is considering a possibility to challenge it in Vilnius Regional Administrative Court.
Regarding the results of due diligence the Commission recalculated the price caps of public supply and electricity distribution for 2015 that were approved on 17 October 2014, decision no O3-845 and no O3-842:
- in medium - voltage network 4.068 ct/kWh or 1.178 EUR cents/kWh;
- in low - voltage network 5.351 ct/kWh or 1.550 EUR cents/kWh;
- public supply service – 0.481 ct/kWh or 0.139 EUR cents/kWh.
Currently electricity energy distribution price cap in medium voltage network is 4.479 ct/kWh or 1.297 EUR cents/kWh, in low voltage network 6.162 ct/kWh or 1.785 EUR cents/kWh. Public supply price cap is 0.52 ct/kWh or 0.15 EUR cents/kWh.
As it was already published, on 24 November 2014 LESTO received information that Vilnius Regional Administrative Court accepted LESTO complaint regarding the decisions of the Commission no O3-841 and no O3-845 made on 17 October 2014 partial cancellation. Commission, in LESTO opinion, illegally extended regulatory period of 2011-2013 for the year of 2015 and set the price caps for electricity energy distribution for 2015 inappropriately by not taking into account the ruling of the Government of the Republic of Lithuania of 24 September 2014 no 1026. The ruling states the principles how the prices in government regulated electricity energy industry should be set. In addition, Commission calculated weighted average cost of capital (WACC) for 2015 inappropriately.
On 9 December 2014 Commission also reached the decision to change the decision of the Commission of 30 October 2014 no O3-868 that stated the price cap for LESTO public electricity price for 2015 for household customers who buy the electricity from medium and low voltage network:
- in medium - voltage network 29.748 ct/kWh or 8.616 EUR cents/kWh (excluding VAT);
- in low - voltage network 35.099 ct/kWh or 10.165 EUR cents/kWh (excluding VAT).
Public electricity price is coprised of the following components: electricity energy purchase price, public obligation tariff price, systematic services price, price cap of transmission service, price cap of public supply service and price cap of distribution service.
Public electricity price for 2014 for household customers who buy electricity energy from medium voltage network is 31.616 ct/kWh or 9.157 EUR cents/kWh (excluding VAT), from low voltage network 37.778 ct/kWh or 10.941 EUR cents/kWh (excluding VAT).
After adoption of all necessary decisions, LESTO will announce electricity prices for the year 2015 immediately.
Representative for Public Relations Martynas Burba, Tel. No (8~5) 251 4516
