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Price for Heat Production Calculated for the Kaunas Heat and Power Plant
2008-10-20
The State Commission of Price and Energy Control (SCPEC) proposed to the Kaunas Heat and Power Plant (KHPP) to fix the price for heat production as 14.76 cents per kilowatt-hour.
’This week the Commission is going to confirm the new price of heat production. Whether it is fixed legally or not, will be clear after adoption of court decision. In its turn, our enterprise will further do its best to make the produced heat one of the cheapest in Lithuania,’ stated Antanas Pranculis, the Director General of KHPP.
KHPP asked to fix the heat price as 16.31 cents per kilowatt-hour. Such price was decided upon assessment of the situation in fuel market, increased expenditure of production, inflation and other factors affecting the price for heat energy.
KHPP has appealed to the Vilnius Circuit Administrative Court against the obligation to coordinate prices for sold heat with the Commission.
According to the contract on purchase-sale of heat energy drawn in 2003 between KHPP and the enterprise KAUNO ENERGIJA, controlled by the Kaunas City Municipality, in first five years KHPP ought not to change the heat price and during later ten years the price had to be recalculated according to the formula. Nonetheless, last year the Seimas amended the Law on Heat System and now KHPP has to coordinate the price of produced heat with SCPEC.
KHPP met the undertaken commitments not to increase the price for heat, thus creating the conditions for the Kaunas inhabitants to relish cheaper heat. Presently the price of heat produced by KHPP is considerably cheaper than that to be fixed by the contract in force with KAUNO ENERGIJA.