Power Plant Concerned with Litas in Wallets of Kaunas Inhabitants
2008-05-29
Renouncing part of its profit, Kaunas Heat and Power Plant (KHPP) gives its pledge to supply heat to Kaunas inhabitants at an attractive price.
KHPP notified that the heat to the enterprise KAUNO ENERGIJA (KE) from the second half of the current year will be further sold at an attractive price, namely at 12 - 12.5 cents per kilowatt-hour. As compared to other national metropolises, the current price for heat production in Kaunas stays at the lowest level.
Rasa Gudzinskaitė, representative of the Heat Department of the National Control Commission for Prices and Energy, asserts that the national average district heating production price amounted to 12 cents per kilowatt-hour in 2007, whereas this year assumptions infer that the given price already equals 17 cents.
“At the expense of our own profit we will keep on selling heat to Kaunas at attractive prices”, said Antanas Pranculis, the Manager of KHPP. Prices for heat, generated by the power plant, to KAUNO ENERGIJA are established in accordance with the long-term agreement (15 years) between these companies, signed five years ago. Up to May of 2008 KHPP was committed not to increase prices. As of today prices for KE must be established according to the formula linked with the variations in the prices of natural gas and petroleum products. However, manager of KHPP warns that there is a possibility that KE will not receive any price discounts due to the new Law on Heat Sector, stipulating that prices must be harmonized by heat distributors with the National Control Commission for Prices and Energy every half a year. The foregoing is against the long-term agreement between KHPP and KE establishing the formula for heat price, related to the variations in the price of gas and petroleum products. Thus, should the heat prices be established by the Commission, they may be unwelcoming to KE. “Following the Civil Code, retrospective validity of laws is not allowed, thus any contract concluded earlier must be respected. In any event the final say falls to the lawyers”, said Mr Pranculis.
© Kauno diena
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