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On the compensation for consumers due to increasing energy prices

·2-min read
Ignitis grupė
Ignitis grupė

AB “Ignitis grupė” (hereinafter – the Group) informs that on 12 May 2022 the Parliament of the Republic of Lithuania (hereinafter – the Parliament) adopted amendments to the Law on Energy of the Republic of Lithuania, the Law on Electricity of the Republic of Lithuania and the Law on Natural Gas of the Republic of Lithuania (hereinafter – the Amendments) related to providing consumers with partial compensation due to increasing prices of energy resources. For this purpose, the Government’s state budget plan includes EUR 570 million, a part of which will be allocated to the customers of the Group throughout the second half of the year.

The Group reminds that on 4 November 2021 legislation amendments were adopted with the intention to mitigate increasing electricity and natural gas prices for private customers (link). Due to the reason above, the Group until 1 July 2022 is amortising electricity and natural gas prices, which has increased the working capital and the debt level of the Group. The current amendments provide that increasing prices as well as debt of regulated supply customers up to this point will be partially compensated directly from the state budget, which, according to the Group’s assessment, will have a positive effect on the Group’s working capital and debt level. The adopted Amendments will ensure that the burden of increasing prices for all private customers does not extend into the future and will allow to continue seamless liberalisation process of electricity market, without halts or delays.

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”), and, in turn, the administrator will be paid by the public administration body responsible for administrating budget funds in accordance with the description of the procedure set out by the Government.

The Group has announced about the Government’s plans to reduce energy prices for consumers earlier (link). The legislation amendments will also have to be signed by the President of the Republic of Lithuania. The Group will not inform separately about the signing and entry into force of the legislation unless the legislation will not be signed by the President of the Republic of Lithuania.

For more information please contact:

Artūras Ketlerius
Head of Public Relations at Ignitis Group
+370 620 76076