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VILNIUS - The National Energy Regulatory Council (NERC) has passed a resolution that will see AB "Ignitis gamyba" returning a significant portion of its additional profits from new energy services to Lithuanian consumers. This resolution, effective April 30, 2025, modifies existing regulations to implement a new profit-sharing mechanism.
The resolution specifically addresses the manual frequency restoration reserve (mFRR) services recently introduced in the Baltic market by Kruonis PSHP and Kaunas HPP, as well as the isolated system operation services provided by the Elektrėnai Complex. These facilities are owned by Ignitis Gamyba, a subsidiary of AB “Ignitis grupė”.
According to the new regulations, 70% of the positive financial result from mFRR services, calculated as the difference between the auction’s marginal price and Ignitis Gamyba’s bid price, will be returned to consumers. This return could increase if the company’s actual EBITDA for 2025 surpasses its 2024 EBITDA plus the previous year’s growth rate. The mFRR service provisions are set to remain in effect until December 31, 2025, with a potential extension upon NERC’s decision.
For isolated system operation services, consumers will receive 50% of the positive financial result, while ensuring Ignitis Gamyba retains half of the investment return regulated by the NERC. This arrangement is scheduled to last until December 31, 2026, and may also be extended by NERC.
The additional revenue from these new services was initially projected to be lower; therefore, this development does not impact the Group’s Adjusted EBITDA and Investments guidance for 2025. Ignitis Gamyba will issue updates only if future changes to the resolution have a material effect on the Group’s financial results.
This move to share additional profits with consumers in Lithuania comes as part of the broader regulatory efforts to ensure that the benefits of energy market operations are passed on to end-users. It reflects a growing trend in the energy sector where regulators are increasingly seeking to balance corporate profitability with consumer interests, especially in the context of new energy services and markets.
The information reported here is based on a press release statement from AB “Ignitis grupė”.
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