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NETWORK TARIFFS IN LITHUANIA

NETWORK TARIFFS IN LITHUANIA. AISTIJA ZUBAVICIUTE National C ontrol C ommission for P rices and E nergy 3 July 2006, Riga Baltic Electricity Market Mini-Forum. STRUCTURE OF THE ELECTRICITY PRICE. METHODS OF TARIFF SETTING - 1.

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NETWORK TARIFFS IN LITHUANIA

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  1. NETWORK TARIFFS IN LITHUANIA AISTIJA ZUBAVICIUTE National Control Commission for Prices and Energy 3 July 2006, Riga Baltic Electricity Market Mini-Forum

  2. STRUCTURE OF THE ELECTRICITY PRICE

  3. METHODS OF TARIFF SETTING - 1 • Generation and independent supplyprices are not regulated - bilateral agreements or auctions, except, if generator and independent supplier has more than 25% of the market share, then Commission sets the price cap • Additional electricity (Auction) price is set by Electricity trading in auction rules • Balansing energy price set by Methodology of the balance energy price regulation – regulating energy price up/down*1,2/0,8 • Public service obligation price is set by Methodology of setting electricity, which is bought by obligation providing public services, selling volumes (17,35%) and prices (43,18 EUR/MWh)

  4. METHODS OF TARIFF SETTING - 2 • Transmission, distribution and public supply prices are regulated by price caps mechanisms • 3 year revision period and annual correction by 4 indexation factors: • inflation and efficiency • volume adjustment • contingency • under/over recovery of revenue • Tariff design developed by the network operators, approved by the Commission

  5. AVERAGE PRICES OF THE TRANSMISSION, DISTRIBUTION AND PUBLIC SUPPLY SERVICES IN 2005

  6. TRANSMISSION TARIFFS(more info – www.le.lt)

  7. DISTRIBUTION TARIFFS – EASTERN REGION (more info – www.rst.lt)

  8. DISTRIBUTION TARIFFS – WESTERN REGION(more info – www.vst.lt)

  9. PAYMENTS FOR CONNECTIONS - 1

  10. PAYMENTS FOR CONNECTIONS - 2 One-part charge, when L >< Lvor  k >< xL Two-part charge, when L > Lv  ir  k > xL here:         k= L / P;        P – new connection capacity, kW        Lv and xL – quantities of electricity network extension – Lv = 38 m,  xL = 4,49 m/kW        L – the shortest geometrical distance between the customer’s ownership boundary and calculated connection point, m Example of two-part charge for one phase connection: M = 108,0 x P +14,8 (L – 4,49xP), LTL

  11. PROCEDURES ON AGREEMENTS - 1 • Eligible customers may purchase electricity from public or independent suppliers and in other manner set forth in the Electricity Trading Rules • If customer wants to buy electricity from the Public Supplier, it needs to have an agreement with him, but there is no need for agreements with network operators • If eligible customer wants to buy electricity from Independent Supplier, he has to have the agreements with him and the network operators • All agreements, except for households, are fixed-date

  12. PROCEDURES ON AGREEMENTS - 2 • As it was set time in the agreement each eligible customer (except households) has to indicate planned to purchase electricity volumes by supplier’s specified periods • Before concluding or terminating the electricity supply contract with an eligible customer located in the territory specified in the independent supplier’s license, the independent supplier must communicate a 30 calendar day’s written notification to the effect to the public supplier • Before concluding or withdrawing from a contract for the supply of electricity concluded with the independent supplier, the eligible customer located in the territory indicated in the independent supplier’s license must communicate a 30 calendar day’s written notification to the effect to the public supplier

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