On compensation for increased energy prices for customers and on the approved prices of public supply of electricity and natural gas for private customers
AB “Ignitis grupė” (hereinafter – the Group) informs that all legal acts necessary to partially compensate consumers for the increase in the cost of energy resources in the second half of 2022 have been adopted and will have a positive impact on the Group’s working capital.
On 30 May 2022, the Government of the Republic of Lithuania set specific amounts of partial compensation for electricity and natural gas prices (hereinafter – partial compensation) as well as the minimum threshold for the electricity price below which partial compensation for electricity shall not be applied. The amounts of partial compensation for electricity and/or natural gas prices will apply from 1 July 2022 to 31 December 2022.
The revised 2022 state budget provides for EUR 973 million for anti-inflation measures, of which around EUR 570 million (incl. VAT) should go to household customers (including the Group’s customers), thus partially compensating them for the sharp increase in gas and electricity prices.
Part of this partial compensation is intended to compensate for the additional component to the price of the electricity transmission service and for the additional component to the price of the natural gas distribution service, which aims to compensate UAB “Ignitis” for the lost revenue due to the differences which were established in the previous periods between the forecast and the actual price of the gas and electricity product. These components are included in the public electricity prices of UAB “Ignitis” for the second half of 2022, as approved by the National Energy Regulatory Council on 8 June 2022, and in the natural gas tariffs of UAB “Ignitis” for private customers for the second half of 2022, as approved on 31 May 2022.
The approved electricity and natural gas prices and tariffs and the implementation of the partial compensation model will cover approximately EUR 365 million (incl. VAT) of the related costs incurred by UAB “Ignitis” in the previous periods that were not included in household customers’ bills for the public supply of electricity and natural gas, and this will have a positive effect on the Group’s working capital and debt level.
The Group reminds that partial compensation for all private customers of public, independent supply and supply of last resort will be provided directly through their electricity supplier and/or natural gas supply company, the electricity supplier of last resort and/or the distribution system operator conducting the gas supply of last resort. State budget funds for partial compensation for private customers will be distributed by the administrator (AB “Energijos skirstymo operatorius”) in accordance with the procedure laid down in the Description, and, in turn, the administrator will be paid by the Ministry of Finance of the Republic of Lithuania in accordance with the procedure laid down in the agreement on the use of state budget funds.
The Group has previously announced about the Government’s plans to reduce energy prices for customers and about the legal acts adopted (link).
For more information please contact:
Artūras Ketlerius
Head of Public Relations at Ignitis Group
arturas.ketlerius@ignitis.lt
+370 620 76076
