AB “INTER RAO Lietuva” will supply electricity to “Maxima LT”, UAB, the largest company of the Lithuanian capital and the largest employer in the Baltic countries.
The contract on the supply of electricity has also been signed by “INTER RAO Lietuva” and “Maxima Grupė” owned companies in Latvia and Estonia.
At present, AB “INTER RAO Lietuva” extends validity of the present contracts and concludes new ones with electricity consumers — legal persons in accordance with the commitments undertaken.
Network operators, who previously restricted electric power import from the third parties, have increased a throughput by almost one third thus causing the increase of supply and competition. This resulted in a significant reduction of electric power price in the market, said AB “INTER RAO Lietuva”.
„Network operators offered an opportunity to import the deficient electricity from the third parties and thus enabled one to increase the supply and strengthen the competition. Today we may already witness a result of such decision – having increased the throughput from the Belarussian side from 0 to 300 MW at daytime the electricity price in the market decreased by almost 25 percent. We hope that such decision of the network operators, which is especially favourable to consumers, shall be a long lasting determination. We also expect that the network operators in their future activity shall encourage rather than restrict competition, which is the very factor enabling one to offer the electricity resources to the customers at the best possible price”, told Vidas Čebatariūnas, the Commercial Director of AB „INTER RAO Lietuva“.
On 9 October 2013, the electricity price at NordPoolSpot Lithuanian area lowered down to LTL 217.66 (in Estonian area it reached LTL 141.08) and on 10 October, it decreased to as little as LTL 180.27 (in Estonian area – LTL 146.78) per 1MWh. We would like to remind that on 1 October, due to actions of the network operators, the electricity price at NordPoolSpot Lithuanian area was as high as LTL 436.16 MWh (compared to LTL 177.75 per 1 MWh at Estonian area, i.e. even LTL 258.41 lower (higher) than Lithuania on the same day). Profit that originated due to such differences remained with operators of Estonian and Latvian systems, while the ones who paid for it were Lithuanian electricity suppliers.
Earlier this month AB “INTER RAO Lietuva” has informed that in the light of shortage of electricity in the market and high level of prices it could actually guarantee the missing power supply. However such action was prevented by current network operator agreements that restricted electricity import from the third countries, possibly increased electricity shortage at NordPoolSpot Lithuanian area, and most probably led to the price increase.
In the light of shortage of electricity in the market and a new increase in prices of electricity, the representatives of one of the largest independent suppliers of electricity AB “INTER RAO Lietuva” claim they could actually provide the missing power supply but the network operator agreements prevent them from taking such measures.
“Our company would be able to provide the market with the deficient amount of electricity; however, the agreements between the Lithuanian, Latvian and Estonian system operators prevent AB “INTER RAO Lietuva” from taking any actions. It is these agreements that resulted in electricity shortages and high electricity prices in the market. The present situation is not for the benefit of the independent suppliers of electricity,” says Vidas Čebatariūnas, the Commercial Director of AB “INTER RAO Lietuva”.
The agreements signed this year by “Litgrid” (Lithuania), “Augstsprieguma tikls” (Latvia) and “Elering” (Estonia) create conditions for the maximum throughput for trade between the Baltic countries and for import of more electricity from Estonia and Scandinavia while artificially restricting the electricity imports from third countries and thus, possibly, influencing the growth of electricity prices in the Lithuanian area of Nord Pool Spot market.
AB INTER RAO Lietuva announces its performance results of the first half of 2013 and informs that gross profit of the group of companies operating in Lithuania, Latvia, Estonia and Poland reached LTL 29.5 million, operating profit – LTL 18.7 million and net profit – LTL 14.1 million during this period.
“We positively evaluate our Group’s financial results for the first half of the year: the companies were profitable even in relatively unfavourable circumstances resulting from the occurred natural conditions, lower electricity prices in Nordpool market and restrictions of intersystem transmission lines capacity. These and other objective reasons determined slightly reduction of our sales of electricity and sales income, compared to the same period of the previous year. However, comparing the first and second quarter data, we can already see that the situation has stabilised and no significant changes are observed”, says Giedrius Balčiūnas, CEO at INTER RAO Lietuva.
Further, G. Balčiūnas observes that this period brought the increase in customers opting for Inter Rao Lietuva group of companies as independent electricity suppliers in the Baltic States.
“We are pleased with the increasing number of companies and institutions that have chosen namely our group of companies to supply electricity during the first half of 2013. We observe that companies aiming at reducing their costs for electricity appreciate both reliability and experience of the independent electricity supplier as well as its attitude to the customer. We expect to justify their expectations now and in the future”, says CEO at INTER RAO Lietuva.
Consolidated income of INTER RAO Lietuva Group amounted to LTL 375.5 million in the first half of 2013. Changes in trade volumes in the Baltic States, resulting from relatively low electricity prices in Nordpool system and technical restrictions of intersystem transmission lines capacity had the greatest impact on the Group’s activities. In addition, the increased volumes of electricity generated from shale gas in Estonia, determined lower demand for the imported electricity in the region.
Income from the sale of electricity amounted to LTL 368.5 million in the first half of 2013, and income from the sale of generated electricity reached LTL 7.0 million. These results were mainly influenced by the natural conditions: lower than the normal wind speed, which directly affects electricity generation in Vydmantai Wind Park. Long-term forecasts of the average wind speed allow expecting better performance of Vydmantai Wind Part in the near term.
Cost of sales amounted to LTL 346 million in January-June 2013. Electricity acquisition cost amounted to LTL 343 million during the first six months of this year. Electricity acquisition cost accounts for 99.0% of the total cost of sales.
In the first half of 2013, operating expenses amounted to LTL 10.8 million. Their increase resulted from additional funds for IPO (initial public offering) completion and employee increase-related expenses. INTER RAO Lietuva group of companies also provided more support for various sports, cultural, scientific and community-based initiatives during the first half of this year.
For more information please contact:
Jacek Jan Komar
Spokesperson
INTER RAO Lietuva
Phone +370 5 242 11 21
Mobile +370 662 52 287
E-mail j.komar@interrao.lt
www.interrao.lt
AB INTER RAO Lietuva announces that on 11 July 2013 the Register of Legal Entities of the Republic of Lithuania registered the new wording of the articles of association of Vydmantai wind park, UAB, the company which continues its activities after the merger, and upon this action the merger of UAB IRL Wind and Vydmantai wind park, UAB was completed.
UAB IRL Wind and Vydmantai wind park, UAB were reorganised under Part 3 of Article 2.97 of the Civil Code of the Republic of Lithuania by merging UAB IRL Wind, which will cease its activities as a legal entity after the merger, into Vydmantai wind park, UAB which will continue its activities after the merger.
Vydmantai wind park, UAB took over all short-term and long-term assets and other long-term and short-term financial and other undertakings, accounts receivable and accounts payable, rights and obligations which had arisen under the contracts concluded by UAB IRL Wind or had been created under other legal grounds.
For more information please contact:
Jacek Jan Komar
Spokesperson
INTER RAO Lietuva
Phone +370 5 242 11 21
Mobile +370 662 52 287
E-mail j.komar@interrao.lt
www.interrao.lt