Announcements

On 10 October, Sadales tīkls AS submitted to the Public Utilities Commission draft electricity distribution system service tariffs, which provide for an average reduction of the distribution service tariff by 5.5% (the reduction in costs in the variable tariff component amounts to 8%). Changes in tariffs of distribution services should be approved by the Public Utilities Commission. The changes to the distribution services tariffs are expected to take effect from 1 January 2020.

The tariff changes are also related to the activities carried out by Sadales tīkls AS to improve operational efficiency and to amendments to the methodology for calculating the distribution tariffs. The amendments to the methodology for calculating the distribution tariffs provide for the introduction of an incentive revenue ceiling regulation method allowing distribution tariffs to be determined for a period of 5 years, while introducing a regulatory account. Such a tariff regulation methodology both provides incentives to reduce service costs and guarantees recovery of service costs.

Lower distribution tariffs are also supported by an ambitious performance enhancing programme carried out by Sadales tīkls AS, which involves improvement of processes reducing the staff, vehicles and bases.

Sadales tīkls AS is a subsidiary of Latvenergo AS, which maintains and develops the distribution network, ensuring supply of electricity to more than one million customer sites, covering with its service 99% of the territory of Latvia. Revenues from the distribution service of Sadales tīkls AS in 2018 constituted 304,4 million EUR, EBITDA – 110,1 million EUR, value of assets – 1,659 million EUR.

Additional information:
Jānis Irbe
Group Treasurer
Phone: +371 67 728 239
E-mail: investor.relations@latvenergo.lv