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Heating Prices May Rise Twice
2008-03-15
Managers of Kaunas Heat and Power Plant, operated by the Russian concern GAZPROM, began speaking of heat prices to rise twice in Kaunas city in the short run.
A special agreement with Kaunas Heat and Power Plant had protected Kaunas residents from any greater shocks in the district heat price for five years. Since 2003 heat to the enterprise KAUNO ENERGIJA was supplied by the power plant at the same price on an annual basis.
“Commitment of the power plant to the city and its residents expires this May. This agreement caused us significant losses”, explained Antanas Pranculis, the Director General of Kaunas Heat and Power Plant.
As he puts, since 2003 the gas price has demonstrated an increase by four times. In pursuance of reduction of losses sustained by the power plant, GAZPROM’s sale of gas is performed at a much lower price than that of the market, which, however, in the opinion of Antanas Pranculis, is insufficient to cover the damages.
The manager of the power plant forecasts that the new heating season will cost more to Kaunas residents. Presently, the cost price of heat production has increased twice; heating is likely to rise at an approximately similar rate.
© Lietuvos rytas/Laikinoji sostinė/ BNS