|Emitents||Augstsprieguma tīkls, AS (64883LC3F12690GATG87)|
|Veids||2.2. Iekšējā informācija|
Latvian transmission system operator JSC "Augstsprieguma tīkls" (AST) has developed and submited for approval new electricity transmission tariff to the Public Utilities Commission (PUC). The significant increase in energy prices in Europe, as well as in Latvia, has increased several times the expenses of AST for the purchase of technological consumption necessary to ensure the operation of the transmission network. The increasing costs in the first half of this year already caused losses for the company in the amount of 7 million EUR. After the tariff is approved, household expenses could increase by 0.6 to 2.9 EUR per month, depending on the type of contract. It is planned that the new tariff could come into force on 1st of March, 2023.
"The historically fastest increase in electricity prices caused losses for the company last year, however, we used the maximum amount of company resources to postpone this decision and limit the increase in transmission tariffs. For the safe and profitable operation of the transmission system operator and to prepare for the secure synchronization of Latvian electricity systems with the European power grid, currently we are forced to raise the transmission service tariff," said AST Chairwoman Gunta Jēkabsone.
The energy-independence of Latvia in the current geopolitical situation is the highest priority, and AST works intensively to ensure that. During the year, the number of applications for new wind and solar power plant connections has grown rapidly, and in the coming years, the intensive work is needed to connect the newly generated power to the transmission network. It is planned to start synchronous work with the continental European transmission networks in 2025, until then infrastructure development is required. AST is already taking into account the unstable geopolitical situation and is ready to ensure the secure operation of the transmission system in any scenario.
AST plans to divert 54.3 million EUR to cover the expected losses this year from the accumulated overload fee revenues – the fees that transmission system operators receive, if the price difference between the electricity trading areas is present. Covering losses will be possible after receiving the PUC's permission and such request together with the tariff draft is submitted to the PUC. 12 million EUR of the losses are expected to be included as expenses in accordance with the tariff calculation methodology to be used in the tariff calculation period for the year 2023-2024. The revision of the tariff and compliance with the costs must be a prerequisite for AST to be able to secure the high credit rating A- obtained so far and to be able to attract financing on the most favorable terms possible.
The largest item of tariff increase expenditure is formed from ASTs need to cover losses of electricity supply - as known, losses of electricity during its transmission are inevitable, and AST purchases electricity for compensation in the power market. Currently, the power market price is almost 6 times higher than the current tariff approved by PUC for 2021-2022 and for this reason AST has been operating at a loss since the 2nd half of 2021.
The fee for electricity consists of two components - the fee for electricity and the fee for the distribution service, which also includes transmission. Some electricity traders have additionally set a fee for their services.
Detailed information about the developed tariff project is available in the presentation - link to the presentation:
Tel. +371 27060306
About JSC "Augstsprieguma tīkls"
AST is the operator of the Latvian electricity transmission system, which ensures continuous, safe and sustainable efficient energy transmission throughout Latvia. Its vision is to become the region's leading transmission system operator that immediately and successfully implements development-oriented changes. AST owns 68.46% of the capital of JSC Conexus Baltic Grid, the operator of the natural gas transmission and storage system.