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New Prices for Natural Gas Transmission Services that will come into effect from 1 January 2020

The National Energy Regulatory Council, as a consolidated institution, following the process when the State Energy Inspectorate under the Ministry of Energy has been reorganised by way of merger and joined to the National Commission for Energy Control and Prices, started its activities from 1st of July 2019 and took over the economic and technical regulation and market supervision and control functions of energy market in the Republic of Lithuania. The consolidation of two institutions was approved by the Parliament of the Republic of Lithuania on 14th of February 2019.

On 10 October 2019, the National Energy Regulatory Council (hereinafter – Council) approved AB Amber Grid natural gas transmission services tariffs that will come into effect from 1st of January 2020.

New prices for natural gas transmission services (2020) are published here.

In 2020, the average price of transmission services for the needs of Lithuanian consumers (considering long-term and short-term services), compared to the average price in 2019, will fall on average by slightly more than 16% - to 1.22 EUR / MWh.

These are the key factors that led to significant reduction (by almost 18%) of transmission service revenue cap for 2020 by the Council after it has assessed discrepancy in return on investment.

The transmission service prices for 2020 were also influenced by the public consultation on the pricing methodology for regulated activity services of Amber Grid from 2020 that was conducted by the Council in the 1st half of 2019 in accordance with the requirements of Commission Regulation (EU) 2017/460 of 16 March 2017 establishing a network code on harmonized transmission tariff structures for gas (hereinafter – the Public Consultation), and by the proposals from market participants received during it, as well as by the opinion of the Agency for the Cooperation of Energy Regulators (hereinafter - Agency).

Considering the results of the public consultation and with a view to facilitating access of the market participants to Lithuania's Klaipėda liquefied natural gas (LNG) terminal, and thus increase competitive pressure on gas market prices, the Council approved (as in 2019) a 75% discount on the price of transmission services at the entry point in Klaipėda.

In order to increase the simplicity and flexibility of the use of the transmission system, and to promote the development of the regional gas market, the transmission service prices at the entry points are harmonized with entry prices in the neighbouring tariff area covering Latvia, Estonia and Finland.

Also at the entry points and the exit point with Latvia, the company applies lower price multipliers for short-term services compared to those applied in 2019. Correspondingly, in 2020, the average service price of natural gas transportation through the territory of Lithuania on the route Klaipėda LNGT-Latvia (estimating the average of the long and short term product prices), compared to 2019, will fall on average by about 18%.

Information relating to the Council's motivated decision on Article 26(1) of Regulation (EU) 2017/460, of 16 March 2017, establishing a network code on harmonized transmission tariff structures for gas:

  • Certificate on the approval of the prices for the natural gas transmission services of  AB Amber Grid for the year 2020 (click here);
  • Resolution on the approval of the prices for the natural gas transmission services of AB Amber Grid for year 2020 (click here);
  • Action Plan for approving the service prices of AB Amber Grid (from 2021 onwards) that are in line with the Agency Report (recommendations) (click here);
  • Pricing model for natural gas transmission services (click here).