Ignitis Group to share unplanned profits with electricity consumers

Ignitis Group has announced that it will continue to share unplanned profits from manual frequency restoration reserve services with electricity consumers. This follows a decision by the National Energy Regulatory Council (VERT) to extend the regulation of services provided by the Kruonis pumped storage plant and the Kaunas hydroelectric power plant through the end of the year.

While the extension will have a negative impact on the group's operations, the company expects the effect to be significantly smaller than in previous years due to a normalizing balancing market. Last year, the group returned approximately 75 million EUR in profits from these services to consumers. Despite this, Ignitis Group is maintaining its EBITDA forecast for the year at 550–600 million EUR.

The regulatory change aims to ensure revenue neutrality for balancing services and protect consumer interests during the transition of the Baltic balancing services market. The current expiration date for the regulation is set for December 31, 2026, though this may be updated. The company noted that the supply in the balancing market is expected to increase as new storage projects and the fifth unit of the Kruonis plant come online.