The increase in gas prices over the past year has adjusted the price of gas transmission services for next year, recommending to set the average price of gas transmission for Lithuanian consumers at EUR 1.39 per megawatt-hour (Eur/MWh). The price has been set taking into account the permissible increase in the cap on regulated revenues approved by the National Energy Regulatory Council (NERC) in May.
The price of the gas transmission service represents less than 2% of the final gas price paid by consumers. Compared to the average price in 2022 (€1/MWh), it will increase by 39% next year, returning to the level of the gas transmission price in 2021 (€1.40/MWh).
For 2023, the NERC has set a revenue cap of €64.17 million for Amber Grid's regulated gas transmission activities, which is almost 59% higher than in 2022. Today, the Board of Amber Grid approved gas transmission prices for 2023, which have been submitted for NERC’s approbation. The increase in the revenue cap is mainly due to the increase in the technological costs of the transmission system as a result of the significant increase in gas prices. It was also affected by lower adjustments returned to the market for the excess revenue collected in 2021 and the established higher compensation to Poland for the implementation of the GIPL project of common interest.
"Despite the significantly higher revenue cap set for the operator, the expected higher gas flows in 2023 will result in a relatively moderate increase in the price of gas transport to consumers. This is due to the new gas interconnector between Lithuania and Poland, GIPL, which was opened this year, and to the huge demand for the region to use the Lithuanian gas transmission system due to the Russian war in Ukraine," said Nemunas Biknius, CEO of Amber Grid.
In 2023, the plan is to transport 66.6 TWh of natural gas through the Lithuanian natural gas transmission system, an increase of 18.7% compared to the estimate for 2022. The forecasted level of booked capacities, consumption capacities and transported gas volumes were set based on historical data, the needs of the existing and potential users of the system, and taking into account Russia's hostilities in Ukraine, the resulting sanctions by Western countries and the gradual withdrawal of Russian gas from Europe. Lithuania will stop importing Russian gas in April 2022.
At all entry points, the prices for transmission services are expected to remain aligned with the entry prices charged in the neighbouring tariff area of Latvia, Estonia and Finland. With the Klaipėda LNG terminal becoming the main gas entry point in the region, and with demand expected to remain high, a decision was made to charge the same price at the Klaipėda entry point in 2023 as at the other Lithuanian entry points, waiving the applied discount of 75%.
The pricing of gas transmission services in 2023 was impacted by the results of the public consultation survey on the multipliers, seasonal coefficients and discounts to be applied in Amber Grid's transmission service structure in 2023 for the remainder of the regulatory period and the opinion of market participants in early 2022.
In agreement with the NERC, the prices for gas transmission services to take effect from 1 January 2023 will be published on company website www.ambergrid.lt.
