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Heat Price Depends on Court
2008-06-07
Owned by the Russian gas concern GAZPROM, Kaunas Heat and Power Plant will be obliged to harmonize the sold heat energy price with the Commission for Prices. Power plant expects that the final word will be uttered by court, but, nevertheless, plans to submit its own calculations to the Commission.
The Member of the Commission for Prices Danas Janulionis explained to BNS that, in the opinion of the Commission, the power plant, similarly to other heat production companies, will be obliged to establish and harmonize the long-term heat price with the Commission. Commission referred to the conclusion by independent lawyers, as received this week. “Next Monday or Tuesday we will send an official letter to Kaunas Heat and Power Plant with a request to produce the relevant data, required for establishing the price”, stated Mr Janulionis to BNS.
As he believes, having such right, the power plant will probably apply to court: “Anyone would behave in the same manner believing that this is the violation of lawful expectations. However, this will not impede our decisions in establishing the heat price, produced by KAUNO ENERGIJA, to consumers.
Manager of KHPP Antanas Pranculis supposedly said to BNS that only the court would make the meaning perfectly plain. “I believe that court decision is what everyone of us requires, similarly to the Commission for Prices or us or our owners. Opinions differ and no one is able to say whether we need to refer to the Civil Code or the Law on Heat Sector”, stated Mr Pranculis to BNS.
According to him, though the company refuses to acknowledge that the Commission for Prices must regulate the price of heat it produces, the power plant will produce the Commission with material and at the same time emphasise that the final decision will be that of the court. Following preliminary estimates by KHPP, as of the second half of this year it plans to sell heat to KAUNO ENERGIJA for 12-12.5 cents per kilowatt-hour, which is twice as expensive as the current rate (6.58 cents per kWh). According to Mr Pranculis, calculations to the Commission are to be submitted approximately two weeks in advance.
Earlier Mr Pranculis said to BNS that, should the price regulation occur, 15-year agreement with KAUNO ENERGIJA, concluded several years ago, shall become invalid, including agreements on investment. KAUNO ENERGIJA has already submitted to the Commission for Prices its request regarding harmonization of the average district heat price at the rate higher by 44 %, i.e. the price would increase from 14.67 to 21.12 cents per kilowatt-hour (excluding value-added tax). Calculations of such price were made in accordance with the average sale price of heat generated by the Lithuanian Heat and Power Plants, as KHPP has not yet submitted to the enterprise its new heat price.
© Kaunas diena