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Ignitis Group refutes the public statements of a Parliament member about losses

Written by Customer Service on . Posted in Public Companies.

AB “Ignitis grupė” (hereinafter – the Group) refutes the statements (link in Lithuanian) of a Parliament member Algirdas Butkevičius that the subsidiary of the Group UAB “Ignitis” (hereinafter – the Company) has potentially suffered losses in the amount of approximately EUR 500 million. The Group also clarifies the information about the compensation awarded by the Government.

Based on publicly available data (link, p. 130), the consolidated net profit of the Company amounted to EUR 6.6 million. It is important to note that the activities of the Company consist not only of electricity supply to private and business customers, but also energy wholesale trading, balancing, green energy solutions for business and energy efficiency projects. Besides Lithuania, the Company also operates in Latvia, Estonia, Poland, Finland. It is important to note that the Company is managing its independent supply portfolio responsibly and professionally and hedges part of it in financial markets, thus ensuring the performance of obligations to customers.

Finally, we wish to refute the statement in the article that the Company “will be compensated EUR 360 million from the budget, but the losses are growing”. The compensation issued by the Government was issued for household consumers in order to cover the accumulated debt of the public supply customers to the public supplier due to the electricity acquisition price differences which were not included in the tariff accumulated until 1 July 2022, i.e., due to specifics of the public supply regulation. Otherwise, the customers who consumed public supply electricity, regardless of which supplier they would have chosen, would have had to pay this debt themselves by 31 December 2027. Therefore, this is a part of the Government aid programme to reduce energy costs for customers which is provided directly to residents.

At the same time, it must be noted that, based on the financial calendar of the Group for 2022 (link), on 23 August 2022 (Tuesday) the Group is going to publish its financial results for the six months of 2022, which will include the performance of the Group’s subsidiaries.

For more information please contact:

Artūras Ketlerius
Head of Public Relations at Ignitis Group
arturas.ketlerius@ignitis.lt
+370 620 76076

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