REGULATION OF DISTRICT HEATING AND

WATER SECTORS IN LITHUANIA

2012-01-11

HEATING SECTOR

Legal groundLaw on Energy;

Law on Heat Sector.

Regulatory authorities Ministry of Energy;

NCC;

Municipalities.

NCC role

Approves Heat price calculation methodology and Hot water price calculation methodology;

Issues licenses, controls regulated activity (>10 GWh per year);

Sets basic heat and hot-water price components;

Verifies annual heat price components compliance with the law, unilaterally establishes (if needed) annual heat price components;

Evaluates investments;

Controls price application.

Regulation area (1)

Regulation area (2)

Price components

Generation

Supply

Price of sales

Adjusted every yearAdjusted every month7

Variable component Fixed component

+

+

=

Heat prices

The separation of regulation rolesMUNICIPALITIE

S

NCC

INVESTMENTS

PRICES

Approvement of the investments plans

Evaluation of investments

Setting the annual price components

Verification (unilateral

establishment)

WATER SECTOR

Legal groundLaw on Water Supply and Waste Water

Management.

Regulatory authorities

Ministry of Environment;

NCC;

Municipalities.

NCC role

Approves Water supply and waste water management price calculation methodology;

Issue licenses, controls regulated activity;

Coordinates water supply and waste water management price;

Verifies municipality’s determined water and waste water management price compliance with the law, unilaterally establishes (if needed) price;

Controls price application.

Regulation area (1)

Regulation area (2)

The separation of regulation rolesMUNICIPALITIE

S

NCC

INVESTMENTS

PRICES

Approvement of the development plans

Investment evaluation into the prices

Setting the price

Verification (unilateral

establishment)

Thank You for Your Attention!