Energijos Skirstymo Operatorius AB
Notification on material event
Regarding the price-setting for electricity distribution price caps for 2020
Energijos Skirstymo Operatorius AB (hereinafter – The Company), identification code 304151376, registered office placed at Aguonu str. 24, Vilnius, Republic of Lithuania. The total number of registered ordinary shares issued by company is 894 630 333; ISIN code LT0000130023.
On 17 October, 2019 the National Energy Regulatory Council (hereinafter - the Council) established electricity distribution price caps for 2020:
• in medium - voltage networks 1,076 EUR ct/kWh (change 0,214 ct/kWh);
• in low - voltage networks 2,092 EUR ct/kWh (change 0,221 ct/kWh).
Currently electricity distribution price cap in medium-voltage networks is 0,862 EUR ct/kWh, in low-voltage networks – 1,871 EUR ct/kWh.
An increase in the electricity distribution service price cap was determined by provisions of the Law on Special Conditions of Land Use, which will take effect as from 1 January 2020. They provide for the obligation to register special conditions for the use of land in cases where the Company's facilities necessary for electricity distribution activity are installed on land plots. The distribution service price cap is also affected by expenses of payment and administration of one-time compensations for land easements approved by the Government on 25 July 2018.
Price caps have also been increasing due to the growing regulatory asset base, the increase of which has been significantly affected by increasing investments of connection of new customers in recent years and the model of financing of investments in network renovation applied by the regulator, as well as changes in macroeconomic indicators (salary growth and consumer price index), which are assessed by setting allowed operating costs of the Company each year.
Based on the set electricity distribution price cap, the Board of the Company will decide on the mentioned specific services prices for the year of 2020.
Representative for Public Relations Tomas Kavaliauskas, firstname.lastname@example.org, tel. +370 61751616