Tuesday, 02 January 2024 12:17 GMT

Regarding The Networks Segment's 20272031 Electricity Regulatory Period And Regulatory Parameters For 2027


Date:

(MENAFN- GlobeNewsWire - Nasdaq) AB“Ignitis grupė” (hereinafter – the Group) informs that, pursuant to the Methodology for determining the price caps for electricity transmission, distribution and public supply services (link in Lithuanian) (hereinafter – the Methodology), on 16 October 2026, the National Energy Regulatory Council (hereinafter – NERC) adopted resolutions on the long-run average incremental cost (LRAIC) accounting model for the upcoming 2027–2031 electricity regulatory period and on the price caps for electricity distribution services and other regulatory components applicable to AB“Energijos skirstymo operatorius” (hereinafter – ESO) for 2027 (hereinafter – the Resolutions) (link in Lithuanian).

With regard to the upcoming 2027–2031 electricity regulatory period, continuity and stability of the regulatory framework have been maintained, with no significant changes to the Methodology.

The approved price caps and other regulatory components for 2027 are detailed in the table below:

2027 2026 Change
Electricity distribution
Income cap EURm 440.3 376.9 16.8 %
RAB (opening balance) EURm 1,950.4 1,655.1 17.8 %
WACC % 5.85 5.77 0.08 pp
D&A (regulatory) EURm 108.3 97.8 10.6 %
Additional tariff component EURm 29.7 51.8 -42.6 %


According to the Resolutions, NERC established an allowed income cap for ESO's distribution services for 2027 at EUR 440.3 million, which is 16.8% higher compared to the income cap set for the year 2026 (EUR 433.0 million). The changes in income cap were driven by the following:

  • higher investments in the network, resulting in an increased return on investment, and depreciation and amortisation;
  • lower temporary regulatory differences, due to its higher return in 2026.

    The information provided in this announcement does not affect the Group's Adjusted EBITDA and Investments guidance for 2026.

    For additional information, please contact:

    Communications
    Valdas Lopeta
    +370 621 77993
    ...


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