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Heat Price Still Vague
2008-10-24
Produced by Kaunas Heat and Power Plant (KHPP), controlled by the Russian gas concern GAZPROM, the heat price increases by 2.25 times to reach 14.67 cents per kWh.
As the National Control Commission for Prices and Energy (NCCPE) approved of such price on Thursday, based on the estimates of the specialists from Kaunas Municipality, as of December the final price for consumers would rise by 67 %, i.e. from 14.67 to 24.5 cents per kWh.
As Algirdas Vaitiekūnas, the Head of Energy Department of Kaunas Municipality, states, the price to end users could be even lower, i.e. up to 23 cents per kWh, provided production price could be reviewed again and the profit of KHPP would be reduced. In pursuance of such price and pursuant to municipality estimates, the base production price would make up 12-13.5 cents per kWh.
“We disagree with price regulation, but we will do our best to reduce losses sustained as a result of the current price (comment by BNS: 6.58 cents per kWh)”, the Director for Development of KHPP Jurijus Junevičius promised to the NCCPE during the meeting.
Mr Junevičius said that KHPP is neither for nor against, but it would be best if the price were established during that month still. Upon the failure to do so there may be serious supply disorders.
At the meeting Sigitas Matelionis, the Head of KAUNO ENERGIJA stated that the established production price limit is a ceiling limit, which may be the target of negotiations still.
According to Antanas Pranculis, the Director of the Power Plant, negotiations on a lower price would be rather strenuous.
Mr Vaitiekūnas was unable to say whether the municipality would negotiate on a lower price, as the issue was outside the scope of his competence.
It remains still vague what the final heat price to Kaunas residents would be. KAUNO ENERGIJA and municipality will present their estimates to the Commission, whereas the final price will be established by the NCCPE.
Presently, the Commission is in the process of negotiations with the Association of Local Authorities aiming at the heat price to consumers be reviewed every month.
© Kaunas diena