On November 19 AB Amber Grid Board has set the natural gas transmission prices for 2019. The approved prices for natural gas transmission services are submitted for evaluation by the National Commission for Energy Control and Prices (NCECP).
The average price of long-term transmission services for the needs of Lithuanian costumers will amount to 1.17 EUR/MWh. Due to the continual improvement of Amber Grid's efficiency, the application of modern transmission system maintenance technologies and the prior allocation of the part of allowed revenue level for short-term services, the average price of long-term transmission services will not reach the price cap set by the NCECP. The average price of long-term transmission services for the needs of Lithuanian costumers compared to the average price applied in 2018, increases by 3.5%.
In 2018, the price of transmission services applied to Lithuanian costumers was additionally reduced by the NCECP after evaluation of the additional income earned by the company in the previous several years and the return on investment. Without considering this one-time regulatory adjustment, the company's prices for Lithuanian costumers have been decreasing for three consecutive years.
Seeking to create the better conditions for market participants to use the Lithuanian LNG terminal, to increase its competitiveness, AB Amber Grid proposes to the NCECP to approve a discount of 75% on the price of transmission services at the Klaipėda entry point.
At the same time, aiming to promote the development of the regional gas market, the company intends to apply multipliers of short-term service prices at the exit point to Latvia lower than at the other points. The overall price level at this exit point is increasing due to the unified principles of assigning the costs of the main (primary) transmission network for that point with the principles of assigning these costs for the Lithuania’s domestic exit point.
After approval by the NCECP, the prices of natural gas transmission services, which will come into force from January 1, 2019 will be announced on the Amber Grid website at www.ambergrid.lt.
