Yahoo Finance 
On the enforcement of Lithuanian Government’s resolution to continue energy price compensation for business customers
AB “Ignitis grupė” (hereinafter – the Group) informs that AB “Energijos skirstymo operatorius” Management Board approved the signing of the agreement with the Ministry of Finance of the Republic of Lithuania on the use of the State budget funds in 2023.
The Group would like to remind you that the resolution was passed by the Government of the Republic of Lithuania (hereinafter – the Government) on 26 October 2022, wherein a partial compensation was established for business customers for the periods of Q4 2022 and Q1 2023. By this resolution, the Government established that business customers would be compensated 50 percent of their electricity price if it exceeds 24 ct/kWh (excluding VAT and excise duties) for the period from 1 October 2022 to 31 December 2022 and compensate for the same amount during the period from 1 January 2023 to 31 March 2023 if the price is higher than 28 ct/kWh (excluding VAT and excise duties).
The funds allocated for partial compensation of business customers will be paid by the administrator – AB “Energijos skirstymo operatorius”. The resolution of the Government of 26 October 2022 stipulates that partial compensation will be provided to the business customers that receive energy supply services through their electricity supplier or directly to the consumer itself if it acquires electricity for its needs (not for selling or reselling purposes) directly from the power market.
The agreement, same as the resolution of the Government of 4 January 2023 “On the allocation of funds”, stipulates that up to EUR 174 million will be allocated to cover the expenses related to the partial electricity price compensation to business customers for the period from 1 January 2023 to 31 March 2023. This will not have an impact to the Group’s results because ESO is not the final recipient of the funds (it only administrates the payments).
The Group will not inform about the agreement signing in a separate notice.
The Group had announced about the Government’s plans to reduce energy prices for consumers and the adopted legislation earlier (link).
For more information please contact:
Artūras Ketlerius
Head of Corporate Communications at Ignitis Group
arturas.ketlerius@ignitis.lt
+370 6 207 6076
