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Current Issues: Kaunas is at Odds with GAZPROM

2008-08-02

Once Kaunas Heat and Power Plant (KHPP) appealed to Vilnius Regional Administrative Court against the obligation by the National Control Commission for Prices and Energy to harmonize the prices of heat sold, negotiations between the city authorities and the Russian gas concern GAZPROM on heat tariffs got stuck.

Yesterday meetings for negotiations continued at KHPP, which focused on discussions concerning the possibilities to establish the heat price to end users instead of the price of producer. The meeting was attended by Denis Fiodorov, member of KHPP Board, the Head of the Board of Energetics Development of GAZPROM, Antanas Pranculis, the Director General of KHPP, Aleksandras Sigitas Matelionis, the Director General of KAUNO ENERGIJA, Jonas Koryzna, the Chairman of Supervisory Board of KAUNO ENERGIJA, and other experts. In the short run decision concerning the regulation of heat prices will be further sought.
“We can go to law, since we are confident of our justice, but we perceive negative consequences for all the parties. I think that it would be better for both parties to come to an agreement concerning the acceptable price and to wait for the decision of the NCCPE”, stressed D. Fiodorov.
Vilnius City Municipality appealed to the Supreme Administrative Court against the order of Vilnius Regional Administrative Court that denied the request of the municipality to temporarily suspend the decision by the National Control Commission for Prices and Energy (Commission for Prices) to increase the district heat price to Vilnius residents from August by 53 %. Order of Vilnius Regional Court declares that the court will not impose the interim measure in the case on heat price and will not suspend the heat price, established in June by the Commission for Prices, of 22.56 cents per kWh. Up to August it amounted to 14.76 cents per kWh.
According to the Mayor of the capital Juozas Imbrasas, though the final court decision is adverse to municipality and residents of the city, payment for the growing heat should be better made later than now.

© Respublika

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