LITGRID - Notification on material event
Concerning the opinion of the Audit Committee
Lithuanian electricity transmission operator LITGRID AB (business ID 302564383, registered office address Viršuliškių skg. 99B 13, Vilnius, Lithuania), informs that on 15th May 2020 the opinion of The Audit Committee of the holding company UAB EPSO-G was received on these transactions with related parties:
- Electricity transmission service agreement with AB “Energijos skirstymo operatorius”, dated 23rd of December 2019 (hereinafter referred to as the “Transmission Service Agreement”);
- Tertiary active power reserve purchase and sale agreement with AB “Ignitis Gamyba”, dated 12th of December 2019 (hereinafter referred to as the “Tertiary Reserve Agreement”);
- Agreement on purchase and sale of additional services and balancing energy supplied after activation of the secondary active power reserve with AB “Ignitis Gamyba” dated 31th of December 2019 (hereinafter referred to as the “Additional Services Agreement”);
- Isolated electricity system work service purchase-sale agreement with AB “Ignitis Gamyba” dated 30th December 2019 (hereinafter referred to as the “Isolated Operation Service Agreement”) (hereinafter all together to as the “Transactions with related parties”).
On 4th May 2020 the Audit Committee of EPSO-G UAB considered the Transactions with related parties and stated that:
1.1. Transmission Service Agreement is in line with market conditions as the maximum price paid by network users for the service received under the Transmission Service Agreement is approved by a resolution of the National Energy Regulatory Council;
1.2. Transmission Service Agreement is fair and reasonable in relation to all shareholders of LITGRID AB taking into account the objective necessity of concluding the Transmission Service Agreement.
2.1. The conclusion of the Tertiary Reserve Agreement is in line with market conditions as a public auction was held prior to the conclusion of the Tertiary Reserve Agreement and the winner (AB “Ignitis Gamyba”) was capped by the resolution of the National Energy Regulatory Council;
2.2. Tertiary Reserve Agreement is fair and reasonable to all shareholders of LITGRID AB taking into account the objective necessity of concluding the Tertiary Reserve Agreement and the reasonableness of the pricing of the Tertiary Reserve Agreement.
3.1. The conclusion of the Additional Services Agreement is in line with market conditions, as a public auction was held prior to the conclusion of the Additional Services Agreement, and the price caps for reserve power services in 2020 were set for the providers of additional services by a resolution of the National Energy Regulatory Council;
3.2. The Additional Services Agreement is fair and reasonable in relation to all shareholders of LITGRID AB taking into account the objective necessity of concluding the Additional Services Agreement and the reasonableness of the pricing of the Additional Services Agreement.
4.1. The conclusion of the Isolated Operation Service Agreement is in line with market conditions, as the price caps for the Isolated operation services for 2020 have been set for the providers of the isolated operation by the resolution of the National Energy Regulatory Council;
4.2. The Isolated Operation Service Agreement is fair and reasonable with respect to all shareholders of LITGRID AB taking into account the objective necessity of concluding the Isolated Operational Service Agreement and the reasonableness of the pricing of the Isolated Operation Service Agreement.
The individual authorized by LITGRID AB to provide additional information:
Jurga Eivaitė
Communication Division project manager
phone: +370 613 19977
e-mail: jurga.eivaite@litgrid.eu