Published: 2018-10-31 17:42:49 CET
Lietuvos energijos gamyba, AB
Notification on material event

On adopted Resolutions of the Court

Lietuvos Energijos Gamyba, AB, company code 302648707, registered office at Elektrinės st. 21, Elektrėnai (hereinafter referred to as the Company). The total number of registered ordinary shares issued by company is 648 002 629, ISIN code – LT0000128571.

The Company informs, that on 30 October 2018 The Supreme Administrative Court of Lithuania dismissed the Company’s appeal upholding the former Vilnius Regional Administrative Court decision of 2 July 2017 which dismissed the Company’s complaint. In this case the Company requested the following points:

  • to repeal the provisions of the National Commission for Energy Control and Prices (hereinafter “the NCC”) Resolution No O3-562 of 22 October 2015 “On determining the cap prices for capacity reserve services of the Company for the year 2016”;
  • to repeal the former NCC Resolution No O3-685 of 23rd December 2015 “On the amendment of Resolution No. O3-562 of 22nd “On determining the cap prices for capacity reserve services of the Company for the year 2016” and the Resolution of NCC No O3-131 of 25 May 2016 “On determining the cap prices for capacity reserve services of the Company for the year 2016”
  • to repeal Clause 1.3 of NCC’s Resolution No. O3-579 “On determining the public interest service (hereinafter “PI services”) fees and prices for the year 2016” and it’s respective amendments, namely: Clause 2 of NCC’s Resolution No O3-687 of 23rd December 2015 “On amendment of Resolution No. O3-579 “On determining the cap prices for capacity reserve services of Lietuvos Energijos Gamyba AB for the year 2015” and Clause 1.2 NCC’s Resolution No O3-133 of 30th October 2015 “On amendment of NCC’s Resolution No. O3-579 “On determining the public interest service fees and prices for the year 2016”.

This decision by The Supreme Administrative Court of Lithuania is without appeal.

One of the subject matters of this legal dispute have been the Resolutions of NCC by which NCC’s Resolution NoO3-757 of 7th August 2014 has been implemented. The latter Resolution recognized the Company as having a significant subject within the market of production of electric energy. This Resolution has been repealed by a decision of 2016 by The Supreme Administrative Court of Lithuania is without appeal. Yet due to the decision of 30th October 2018 by The Supreme Administrative Court of Lithuania, the Resolutions of NCC that implemented NCC’s Resolution NoO3-757 of 7th August 2014 under which during 2016 the Company has not received 2,51 million Eur in payments for PI services. In it’s financial report for the first three quarters (that have ended on 30th September 2018), the Company has stated that it’s total undefined assets as of 30th September 2018 amounted to 2,51 million Eur.

The Company emphasizes that the decision of 30th October 2018 by The Supreme Administrative Court of Lithuania goes cardinally against the former legal practice as on the 5th August 2016 the Regional Administrative Court of Vilnius has repealed an analogous NCC’s Resolution that also implemented NCC’s Resolution NoO3-757 of 7th August 2014 and under which during 2015 the Company has not received 5,4 million Eur in payments for PI services. By way of implementing this decision of the Regional Administrative Court of Vilnius, these payments are turned back to the Company over 2018.


The Supreme Administrative Court of Lithuania has further found and stated the following:

  • The Supreme Administrative Court of Lithuania has dismissed the Company’s complaint and left the decision of 15th June 2017 of Vilnius Regional Administrative Court unchanged, by which the Company’s complaint to dismiss NCC’s Resolution No O3-852 of 17 October 2014 “On determining the cap prices for capacity reserve services of Lietuvos Energijos Gamyba AB for the year 2015”, and in respect of the NCC’s Resolution No O3-866 of 30 October 2014 “On determining the purchase prices for the year 2015 for electricity produced at the Lithuanian Power Plant of Lietuvos Energijos Gamyba AB”. The decision of the Supreme Administrative Court of Lithuania is without appeal.
  • The Supreme Administrative Court of Lithuania has dismissed the Company’s complaint and left the decision of 19th April 2017 of Vilnius Regional Administrative Court unchanged, by which the Company complained to dismiss the clauses of NCC’s Resolution No. O3-391 of 29 November 2016 “On determining the cap prices for capacity reserve services of Lietuvos Energijos Gamyba AB for the year 2017”. The Company also requested to oblige the NCC to recalculate the cap prices for services of guaranteeing the active power secondary emergency reserve, taking into account the constant expenditure of Second Kruonis Storage Pumped unit. The decision of the Supreme Administrative Court of Lithuania is without appeal.
  • The Supreme Administrative Court of Lithuania has dismissed the Company’s complaint and left the decision of 24th April 2018 of Vilnius Regional Administrative Court unchanged by which the Company’s complaint was dismissed. With this complaint the Company requested: to repeal NCC’s Resolution No O3E-559 of 30 November 2017 “On determining the cap prices for capacity reserve services of the Company for the year 2018” and NCC’s Resolution No O3E-598 of 20 December 2017 “On amendment of amending NCC’s Resolution No O3E-559 of 30 November 2017 “On determining the cap prices for capacity reserve services of the Company for the year 2018”; to repeal NCC’s Resolution No O3E-599 of 20 December 2017 “On determining the PI service fees and prices for the year 2018”; in accordance with Clause 7.4 of the Guidelines for PI services within the energy sector that have been enacted by the Government’s of Lithuania18th by Decree No 916 on 18th July 2012 (hereinafter “the Guidelines”) to oblige NCC to recalculate all expenditure that comprises from common-station asset usage for the production of electric energy, its deterioration while other indirect expenditure amounts are assigned to assets used for the production of electric energy taking into account the capacity and remaining timeframe of usage of the equipment in operation; taking into account the recalculation of the need of PI services, to oblige the NCC to recalculate the fees for PI services for comsumers prescribed within Clause 21 of the Guidelines. The decision of the Supreme Administrative Court of Lithuania is without appeal.

The Company has recognized the effect of all the aforementioned NCC’s Resolutions in its financial reports, hence there will be no further effect on the Company’s results.

 

Valentas Neviera, Head of Communication Division, tel. +370 670 25997, e-mail. valentas.neviera@le.lt