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The negotiations on Kaunas heat prices are continuing
2008-01-08
In the negotiations, which were held in the Kaunas Heat and Power Plant (KHPP) on Kaunas heat prices, the discussions went on about a possibility to fix the final consumer’s heat price instead of that of producer.
In the Friday meeting the following persons were present: Denis Fiodorov, KHPP Board‘s member, the Head of Energetics Development Board of the Russian gas concern GAZPROM, Antanas Pranculis, the Director General of KHPP, Aleksandras Sigitas Matelionis, the Director General of stock company AB KAUNO ENERGIJA, Jonas Koryzna, the Chairman of Supervisory Board of AB KAUNO ENERGIJA and other experts. In the short run a decision for regulation of heat prices will be further sought.
‘We came to clear up whether our agreement drawn with the Municipality-controlled KAUNO ENERGIJA is observed. During the negotiations we wish to find a solution acceptable for all and to come to an agreement as regards the price for heat produced. For Kaunas we shall further supply the same quantity of heat as agreed, i.e. not less than 80 per cent of all city‘s heat energy,’ said D.Fiodorov at the meeting.
D.Fiodorov spoke that the State Commission of Price and Energy Control (SCPEC) should fix the heat price paid by the final consumer, but not that, at which KHPP sells heat to the distributor KAUNO ENERGIJA. As is known to everyone, the price for heat supplied to inhabitants consists of producer‘s price and heat distribution price.
‘We can go to law, since we are confident of our justice, but we perceive negative consequences for all parties. I think that it would better for both parties to come to an agreement as to the acceptable price and to wait for SCPEC decision,’ stressed D.Fiodorov.
A.Pranculis, the Director General of KHPP, is sure that the contract drawn in 2003 between KAUNO ENERGIJA and KHPP on heat pricing should be followed. According to the chief of power plant, in search for a compromise, of use may be the contracted provision related to application of a discount for the price of heat sold.
‘The successful finish of negotiations on heat price would be the first step, bearing in mind the benefit for Kaunas city from the expected investments in future,’ assured the chief of KHPP.
According to the project on KHPP development, in Kaunas it is foreseen to build one of the most modern heat and power plants in East and Middle Europe. Its capacity will reach up to 350 megawatts. The power plant will produce heat for the consumers of Kaunas city and electric energy for all needs of Lithuania. The new power plant will become a reliable supplier of electric energy after closing of the Ignalina Atomic Power Plant next year.