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Published: 7/27/2016. Updated: 7/27/2016

Review of the Heat Energy sector in 2014


Market players

In 2014, in the heat energy sector the NCC was regulating 50 heat suppliers (33 were controlled by the municipalities, 17 were the undertakings operating on the basis of leasing (concession) agreements. The NCC performs the regulation of the heat energy suppliers producing over 10 GWh of heat energy per year; the smaller heat supply undertakings are regulated by the municipalities. In 2014, the NCC was also regulating 19 independent heat producers and 15 non-regulating independent heat producers.

Quantities

In 2014, the heat suppliers regulated by the NCC produced 8562 GWh of heat energy and serviced 697,2 thousand customers. In the market structure of the fuel used for the heat energy production the share of natural gas constituted 56,7 percent, the market share of biofuel – 38,9 percent. Among 60 municipalities of Lithuania, in 22 municipalities natural gas constituted more than 50 percent in the structure of the fuel used for the heat energy production, and in 33 municipalities the respective percentage was made up by biofuel.

Figure 1. Predominant types of fuel used for heat energy production in individual municipalities in 2014

siluma-biokuras-2014.png
 Source – NCC. 

  In 2014, the independent heat producers produced and supplied to the district heating network 2715 GWh of heat.

​Revenues*

In 2014, the heat suppliers earned LTL 1 583,1 million in revenues (the costs by the undertakings accounted for LTL 1 534,04 million). After assessing LTL 10,4 million of the recovered revenues, which were not received due to the difference between the actual fuel prices and the fuel prices which had been included into the heat energy price in the previous periods, the profit in the sector constituted LTL 38,7 million.

Investments

In 2014, the heat supply undertakings regulated by the NCC made investments the value of which totaled LTL 320 million, among these LTL 4,5 million were the allocations from the European Union support funds. In 2010–2014, in the overall structure of the investments made by the heat supply undertakings the biggest part is represented by the equity and borrowings of the heat supply undertakings – approx. 65,13 percent, the part of the investments financed from the European Union funds in the overall structure of the investments varied from 19,86 percent in 2010 up to 1,4 percent in 2014; the part of the state and municipality subsidies constituted 0,71 percent (in 2014) – 0,91 percent (in 2010).

*according to preliminary data

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Review of the Heat Energy sector in 2013

Review of the Heat Energy sector in 2012