In nine months of 2022 the turnover of Latvian power distribution company Augstsprieguma tīkls JSC (AST) was EUR 204.5 million. This includes revenue for power distribution services (EUR 56.3 million). The company’s losses, on the other hand, accounted for EUR 15.3 million, as concluded from the company’s consolidated financial account.
AST Concern, which includes the unified gas distribution and storage system operator Conexus Baltic Grid JSC (Conexus), had a turnover of EUR 243.8 million. The concern’s losses were EUR 14.9 million.
The concern notes that AST’s financial results continued to be negatively influenced by the sharp rise of the price of electricity in May 2021. The costs related to electricity distribution then more than quadrupled in 2022. As a result of this, the losses from electricity distribution reached EUR 21.8 million in nine months of 2022.
To cover these losses, AST plans to divert EUR 54.3 million from accrued congestion charge revenue. Covering losses will be possible once the Public Utilities Commission (SPRK) permits it. EUR 12 million of the losses are planned to be added as expenses of the next tariff calculation period of 2023-2024. According to AST, tariff review and compliance with costs is an important requirement for the company to maintain its high credit rating (A-) and to attract necessary funding at favourable conditions.
AST’s total revenue increase in the first nine months of 2022 was 149% when compared with the same period of 2021.
This revenue helps cover the costs related to efforts to ensure the system’s balance, as well as overload management. According to EU regulations, power distribution system operators are not allowed to gain profits from balancing energy trade. Revenue from the pay system operators receive if a price difference appears between electricity trade regions is accumulated outside of calculation of profits and losses. Public utility regulators are the ones allowed to decide on the use of this money.
Generally in nine months of 2022 AST users in Latvia were provided with electricity volume of 4 593 GWh, which is 1% lower when compared with the same period of 2021 (4 630 GWh). The total volume of distributed natural gas reached 23.4 TWh, which is 26% less when compared with the same period of 2021.
The volume of gas provided for the needs of users in Latvia reached 5.8 TWh, which is 33% less than the year prior.
AST is Latvian electricity distribution system operator that provides distribution of electricity across Latvia. AST owns 68.46% of shares in Conexus Baltic Grid JSC.
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