Litgrid AB

Legal Proceedings Report • Mar 26, 2015

Disclosure 323009

LITGRID - Notification on material event

Litgrid did not breach terms of regulated activities

Vilnius, Lithuania, 2015-03-26 15:55 CET (GLOBE NEWSWIRE) -- Lithuania's electricity transmission system operator Litgrid did not breach terms of regulated activities and does not agree with the decision of the National Commission for Energy Control and Prices (henceforth: the Commission) concerning alleged breaches. The company will appeal this decision in court. Litgrid reports on activity segments to the Commission each year, but until now it had never received remarks on the correctness of income and costs accounts. Over the 2011-2013 period the Commission had not approved any methodology for appropriately performing such accounting. “Over the 2011-2013 period Litgrid did not once exceed the price cap of the electricity transmission services set by the Commission. Therefore the alleged breach could not and did not affect the electricity transmission services price”, says Rimantas Busila, Litgrid Board Member and Director of the Finance Department. Litgrid has repeatedly invited Commission members and professionals to engage in a constructive dialogue and determine clear accounting principles for the costs of regulated activities. The Commission's decision, based on not yet fully discussed issues, will affect the company's financial performance as well as the cash flows and might have significant bearing during the period of completion of the strategic electricity sector projects. Vilija Railaitė Litgrid Head of Communications Tel. +370 613 19977 E-mail: vilija.railaite@litgrid.eu