16.4.2021

Gas tariffs reports: ACER recommends Lithuania to better justify domestic tariffs and mechanisms to compensate the discount granted to Klaipėda LNG entry

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Gas tariffs reports: ACER recommends Lithuania to better justify domestic tariffs and mechanisms to compensate the discount granted to Klaipėda LNG entry

What is it about?

In its second report on the implementation of the European Union (EU) Network Code on Harmonised Transmission Tariff Structures for Gas in Lithuania, the EU Agency for the Cooperation of Energy Regulators (ACER) recommends the Lithuanian national regulatory authority for Energy (VERT) to better substantiate that no discrimination is induced by the difference between the two tariffs applied to domestic consumers. The Agency also recommends to provide a description and a justification for the mechanisms used to compensate the discount granted to Klaipėda LNG entry, in accordance with the Network Code to improve the Lithuanian security of supply.

VERT proposes a postage stamp reference price methodology (RPM). This RPM should in theory be simple and should lead to equalised domestic and cross-border exit tariffs. VERT however applies several asset-cost splits and a complex mechanism to compensate the discount granted to Klaipėda LNG entry. These additional complexities aim at improving the cost-reflectivity of the tariffs and at limiting cross-subsidies between domestic and cross-border users. They lead to differentiated tariffs among domestic exits and among cross-border exits. The Agency recommends VERT to publish additional information and to clarify the legal base justifying these complexities.

VERT shall take a motivated decision by 17 July 2021. 

Access the report​.

Find out more and access all ACER reports on national tariff consultation documents.