31.08.2022

The Latvian transmission system operator JSC "Augstsprieguma tīkls" (AST) continues to provide stable and safe electricity transmission to users in Latvia, which reaches 3,138 GWh in the first 6 months of 2022. Despite a significant increase in electricity prices, which almost triples the price predicted in the electricity transmission tariff level, the Latvian transmission system operator JSC "Augstsprieguma tīkls" closed the first half of 2022 with a turnover of EUR 91.251 million and a loss of EUR 467 thousand.

The rapid increase in the price of electricity since May 2021 continued in the first 6 months of 2022. In June 2022, the average electricity price in the Latvian trading area increased to EUR 218.29 per MWh, which is 33% more than price in the previous month, but compared to June 2021, the price is 186% higher. In June, Latvia reached the historically highest monthly average electricity price since the opening of the electricity market - 218.29 EUR/MWh.

When evaluating the indicators of AST's financial results, it should be taken into account that according to Article 5 of the Energy Law of Latvia, electricity transmission is a regulated industry, PUK determines the allowed profit by determining the capital return rate, approving the electricity transmission system service tariffs.

AST's net turnover in the reporting period is 91'251 thousand EUR, including revenues from electricity transmission network services in amount of 37'776 thousand EUR, which makes up 41% of the total turnover. Revenue grew in the first six months of 2022 by 79% compared to the corresponding period of the previous year, mainly related to revenues for balancing electricity. The mentioned revenues cover the costs related to ensuring the balancing of the system.

According to the current methodology for calculating electricity transmission system service tariffs, electricity price fluctuations and their economic impact are taken into account in the next regulatory period, thus ensuring the operator's financial stability in the medium term. The decision on the amount of costs, which is applied to the following periods, is taken by the board of the Public Service Regulatory Commission (PSRC).

AST continuously fulfills all obligations stipulated in loan agreements towards lenders, as well as partners in the realization of capital investments. After re-evaluation, the company has maintained a consistently high credit rating of A- with a stable outlook.

The results of the AST Group were positively influenced by revenues from natural gas storage. AST Group's revenues in the first half of 2022 amount to 118.928 million EUR, losses – 1.607 million EUR. The decrease in the Group's profit, compared to the corresponding period of 2021, is related to both the sharp increase in the price of electricity and the 32% drop in natural gas consumption by Latvian users.

 Interim financial reports can be found on the AST website https://www.ast.lv/en/content/financial-statements.

About Augstsprieguma tīkls AS
Augstsprieguma tīkls AS (AST) is an independent transmission system operator, which operates the electric power transmission network ensuring continuous, safe and sustainably efficient electric power supply in Latvia. AST’s vision is to become the region’s leading transmission system operator through driving development and innovation oriented changes. AST holds 68.46% of the shares of the natural gas transmission and storage system operator JSC Conexus Baltic Grid.

Additional information:

Elīna Grīvāne

Communication department

+371 27060306

E-mail: elina.grivane@ast.lv