1. NACIONAL CONTROL COMISSION FOR PRICES AND ENERGY REGULATION OF ENERGY SECTOR IN LITHUANIA Chairman Virgilijus Poderys 2008-11-11 Tallinn

2. National Control Commission for Prices and Energy NCC structure Member Chairman Member Heat department Gas department Electricity department Water department Transport department Law department Licensing department Adviser Director of administration Finance department Public information dep. Maintenance section

3. National Control Commission for Prices and Energy Electricity sector  Discussions on Electricity Law and the role of Regulator.  Problems with new methodologies of electricity transmission, distribution and public supply price caps.  Discussions on new Export and Import rules.  Future problems with increasing electricity prices.

4. Electricity prices for industry in EU

5. Electricity prices for households in EU

6. National Control Commission for Prices and Energy Gas sector  Problems with 3 rd EU Energy package.  Regulation of gas supply price.  New methodologies of gas prices.  New price caps for the period 2009-2013.  Problems with gasification of new territories.  Problems with increased gas prices.  Market isolation – 100 % dependency on Russian gas.

7. National Control Commission for Prices and Energy Gas prices Compared with January 2008: Gas price increase +52% USD/1000 m3

8. National Control Commission for Prices and Energy Gas prices for households

9. National Control Commission for Prices and Energy Gas prices for industry

10. National Control Commission for Prices and Energy Heat sector  Heat law. Functions of municipality and NCC in heat sector regulation.  Methodology of heat prices.  Who is the supplier of hot water?  Co-generation problem.  Why is the price of heat increasing?

11. National Control Commission for Prices and Energy Dynamics of fuel prices

12. National Control Commission for Prices and Energy Structure of heat prices

13. National Control Commission for Prices and Energy Heat prices in the region 2008 forecast 200 7

14. National Control Commission for Prices and Energy Water sector  Different water pricing methodology compared to energy sector – just cost recovery.  Water supply and wastewater management law – public water suppliers, licensing.  Future of water sector: By 2014 95 % of consumers will be provided with water and wastewater services. 10 regional water supply companies?

15. National Control Commission for Prices and Energy Water prices in the Baltic region (January 2008)

16. National Control Commission for Prices and Energy Transport sector  Is transport sector regulated or competitive market?  Regulated market is partly competitive.  NCC regulates:  in railway transport – 2 % of all incomes,  inland water transport – 13 %,  road transport – 25 %.  In 2007 the net loss in regulated road passenger transport activity is 25,1 mln. EUR.  The price of road passenger transport is increasing.  Is it worth regulation?

17. National Control Commission for Prices and Energy Control of energy companies  Enhancement of control functions.  Regulation of energy companies service quality.  Necessity of responsibility tightening of regulated companies for violation of licensing activities.  Improvement of methodology of evaluation of companies financial capacity.

18. National Control Commission for Prices and Energy Legal environment of NCC  Constantly about 30 cases are on the court.  Decreased number of complaints from consumer rights protecting authorities.  Energy companies most actively defend their rights.

19. National Control Commission for Prices and Energy Statistics of cases

20. National Control Commission for Prices and Energy Statistics of cases

21. National Control Commission for Prices and Energy NCC regulated sectors’ profits

22. National Control Commission for Prices and Energy NCC regulated sectors’ long-term assets (2007) Gas – AB Lietuvos dujos; Electricity – AB Lietuvos energija, AB Rytu skirstomieji tinklai, AB VST; Heat – 44 heat sector companies.

23. National Control Commission for Prices and Energy Influence on inflation of NCC regulated sectors

24. National Control Commission for Prices and Energy Energy sector profits compared with banks and telecommunication sectors

25. National Control Commission for Prices and Energy Future tasks of NCC  Strengthening the institution status of NCC.  Unification of regulation principles of all sectors.  Strengthening financial or economic regulation (not technical or engineering).  Improvement of energy sector legal acts and methodologies.

26. National Control Commission for Prices and Energy Thank you! National Control Commission for Prices and Energy www.regula.lt