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Regarding Networks segment income level of electricity distribution for 2023

Written by Customer Service on . Posted in Public Companies.

AB “Ignitis grupė” (hereinafter – the Group) informs that, pursuant to the Methodology for determining the price caps for electricity transmission, distribution and public supply services (link in Lithuanian), on 17 October 2022 National Energy Regulatory Council (hereinafter – NERC) adopted the resolution on the price caps for electricity distribution services of AB “Energijos skirstymo operatorius” (hereinafter – ESO) for the following regulatory period (hereinafter – the Resolution) (link in Lithuanian).

NERC established ESO income level of electricity distribution services for 2023, comprising EUR 395.5 million, which is  65,0 % higher compared to the income level set for year 2022 (EUR 239.7 million).

Income level increase was mainly caused by higher natural electricity technological expenses, which have increased due to higher electricity purchase prices (the purchase price has increased 4.3 times, comparing to the purchase prices of 2022). The income level has also increased due to the growth of operating costs, which reflects tendencies in the market also considering inflation and growth of wages, as well as due to increase of ESO regulatory asset base, which has increased as a result of consistently implemented investments into the development and renewal of the electricity distribution network in recent years.

Since the income level has largely increased due to reimbursable planned electricity technological expenses, the growth of adjusted EBITDA will be significantly lower than the growth of the income level of electricity distribution, because adjusted EBITDA is determined by investments in the network and the return on investments rate set by the regulator (NERC).

For more information please contact:

Communications 
Artūras Ketlerius
+370 620 76076
arturas.ketlerius@ignitis.lt

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