Baltic States – CIS, Energy, Gas, Legislation, Lithuania

The pricing model changed after the European Agency for the Cooperation of Energy Regulators (ACER) said last summer that the National Commission for Energy Control and Prices incorrectly calculated prices. According to the agency, Gazprom, a cross-border user, has to pay only for the main pipeline, while domestic users have to pay for its branches as well.

Under an entry-exit pricing model in place in Lithuania since the start of this year, the transit of gas has become a regulated activity and Gazprom has to pay for the amount of gas transmitted.

The annual capacity tariff for Gazprom's gas at the Kotlovka entry point declines by 34.8% to 32.32 euros per megawatt-hour (MWh) per day. The capacity tariff at the Sakiai exit point rises by 8.9% to 41.17 euros, while the tariff for the quantity of gas transmitted remains unchanged at this point, at 7 euro cents per MWh.

Gas transit shipments via Lithuania to Kaliningrad fell by 1.8% in the first half of 2015 year-on-year to 10.996 million MWh.

Sources have told BNS that Lithuania's gas transmission system operator Amber Grid and Gazprom have already completed their talks over gas transit to the Russian exclave from 2016. An agreement is yet to be approved by government institutions and is expected to be signed by mid-December.

At the Kiemenai gas metering station, through which gas is transported to Latvia and Estonia, the annual tariff at the entry point also declines by 34.8% to 32.32 euros and the tariff at the exit point goes down by 23.3% to 38.05 euros.