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Cheaper Gas Leads to the Reduction of the Heat Production Price Too
2010-10-20
The decreasing U.S. dollar against euro in the world stock exchanges leads to lower prices of natural gas, thus, already from 1st of November the heat generated at Kaunas Heat and Power Plant (KHPP) is likely to get cheaper. The price will be reduced by almost 6 %, i.e. to 14.08 cents per kilowatt-hour.
“Natural gas prices are one of the essential factors predetermining the heat production price. As the gas price calculation formula is associated with the fluctuation of the U.S. dollar exchange rate, the cheaper dollar affects also the price of heat produced in Kaunas. This bears high relevance to the consumers upon the start of the heating season”, said Antanas Pranculis, the Director General of KHPP.
Moreover, the heat production price at cogeneration power plants is likely to depend on the feed-in procedure. Should the public authorities establish unfavourable feed-in tariffs, there would be fewer possibilities to ensure lower heat price.
The final heat price for consumers is established by Kauno energija, controlled by Kaunas City Municipality. It supplies heat to Kaunas consumers.
Pursuant to the statistics of the National Control Commission for Prices and Energy, current heat price for Kaunas consumers is lower than for other inhabitants of sixteen Lithuanian cities (Alytus, Marijampolė, Telšiai, etc.).
During the period 2003-2008 KHPP applied the lowest heat price in Lithuania according to its obligations undertaken under investment agreements. Later the State legalized the regulation of heat prices that led to an increase in the heat price.
In 2009 it was the last time KHPP cheapened the price of heat it produces.
For more information:
Žilvaras Zinkevičius
Account manager
Public Relations Agency “Avenire”
Mob. +370 603 30255;
Tel./fax. +370 5 2608441
E-mail: zilvaras@avenire.lt