Energy, Legislation, Lithuania

The company was fined for unreasonable costs of EUR 15.058 million, which were included in the consumers' tariff.

Litgrid, meanwhile, claims that it is did not breach terms of regulated activities and does not agree with the decision of the VKEKK concerning alleged breaches. The company will appeal this decision in court.

Litgrid reports on activity segments to the Commission each year, but until now it had never received remarks on the correctness of income and costs accounts. Over the 2011-2013 period the Commission had not approved any methodology for appropriately performing such accounting.

"Over the 2011-2013 period, Litgrid did not once exceed the price cap of the electricity transmission services set by the Commission. Therefore the alleged breach could not and did not affect the electricity transmission services price," says Rimantas Busila, Litgrid Board member and director of the Finance Department.

The Commission's decision will affect the company's financial performance as well as the cash flows and might have significant bearing during the period of completion of the strategic electricity sector projects.