The turnover of JSC "Augstsprieguma tīkls" (AST) in the 9 months of 2022 amounted to 204.5 million EUR, including revenues from electricity transmission network services 56.3 million EUR and losses – 15.3 million EUR. The turnover of the AST Group, which includes the subsidiary company - unified natural gas transmission and storage system operator JSC "Conexus Baltic Grid", was 243.8 million EUR, but the group's losses – 14.9 million EUR.

The financial results of AST continued to be negatively affected by the sharp increase in the price of electricity since May 2021, thus in 2022 the costs related to the provision of electricity transmission services for covering technological losses increased more than four times. As a result, losses from electricity transmission in the 9 months of 2022 amount to 21.8 million EUR.

AST plans to allocate 54.3 million EUR from accumulated congestion revenues to cover this year's losses. This will be possible after the permission of the Public Utilities Commission (PUC) and which already have received the request from AST. Aditionally, 12 million of the losses according to the tariff calculation methodology are expected to be included as expenses in the next tariff calculation period for 2023 to 2024. Revision of the tariff and compliance with costs is an essential prerequisite for AST to be able to maintain the high credit rating A- obtained so far and to be able to attract the necessary financing on the most favorable terms.

AST's total revenue growth in the first nine months of 2022 was 149% year-on-year, mainly due to balancing electricity revenue as well as congestion revenue. These revenues cover the costs associated with ensuring system balancing as well as congestion management. According to European Union regulations, transmission system operators may not make a profit from balancing energy trading, while congestion revenue - a fee that transmission system operators receive if a price difference develops between electricity trading areas - is accumulated outside the profit and loss account and for their use may be decided by public utility regulators.

In 9 months of 2022, AST transmitted electricity to users in Latvia in the amount of 4 593 GWh, which is 1% less than in the corresponding period of the previous year (4 630 GWh). The total volume of transported gas reached 23.4 TWh, which is 26% less than in the corresponding period of the previous year. The volume of natural gas consumption for the needs of Latvian users reached 5.8 TWh, which is 33% less than a year ago.

Interim financial reports can be found on the AST website: https://www.ast.lv/en/content/financial-statements

More information:

Elina Grivane

Head of Communications

Tel. +371 27060306

E-mail: elina.grivane@ast.lv

 About JSC "Augstsprieguma tīkls"

AST is the operator of the Latvian electricity transmission system, which ensures continuous, safe and sustainably efficient electricity transmission throughout Latvia. Its vision is to become the region's leading transmission system operator that promptly and successfully implements development-oriented changes. AST owns 68.46% of the capital of JSC Conexus Baltic Grid, the operator of the natural gas transmission and storage system.