The net turnover of the Latvian transmission system operator JSC "Augstsprieguma tīkls" (AST) in the first nine months of 2023 was 114.9 million EUR, including revenues from electricity transmission grid services in amount of 60.7 million EUR with profit from electricity transmission before financial revenues reaching 0.04 million EUR, as stated in the published unaudited report of the AST Group for the nine months of 2023.

AST's profit in the nine months of 2023 was significantly affected by the price of electricity for transmission technological losses – three times exceeding the price included in the calculation of transmission tariffs effective until July 1, 2023. This significant increase in costs was covered by diverting income from cross-border transmission capacity auctions amounting to 12.5 million EUR. AST's profit in the reporting period reached 6.8 million EUR, mainly consisting of dividends received from the subsidiary "Conexus Baltic Grid".

In order to maintain the lowest electricity transmission tariffs in the Baltics, in addition to the already implemented cost reduction measures, AST, with the approval of the Public Utilities Commission (PUC), will utilize the accumulated congestion revenues in amount of 62 million EUR by the end of 2025 to cover the costs of electricity transmission system services. According to the differentiated electricity transmission tariffs submitted by AST, from January 1^st, 2024, they will be 2.5% lower than the current ones, on account of amendments to the transmission tariff calculation methodology allowing to include in tariff calculation the current inflation forecast for 2024 and AST's income from cross-border transmission capacity auctions resulting in tariff reduction. It is planned that these changes will come into force from January 1^st, 2024.

At the same time, AST continues the electricity transmission system development and prepares to begin synchronous work with continental Europe, starting from the beginning of 2025, in order to disconnect the Latvian electricity supply system from the network controlled by Russia and Belarus and strengthen the energy security of our country, most of which is implemented with the co-financing from the European Union in the amount of 300 million EUR. According to the electricity transmission system development plan for the next 10 years approved by the PUC in October 2023, 509 million EUR will be invested in the electricity transmission system, which also includes the synchronization of Latvia's transmission system with continental Europe, as well as other important projects.

The net turnover of the AST Group was 167.2 million EUR and net profit reached 5.7 million EUR The revenues of the natural gas transmission segment of AST Group in the reporting period were 17.1 million EUR andthe losses reached 1.4 million EUR. The revenues of the natural gas storage segment in the reporting period were 35.2 million EUR and the profit reached 6.1 million EUR.

In the first half of 2023, AST transmitted electricity to users in Latvia in the amount of 4,357 GWh, which is 5.4% less than in the corresponding period last year. The total amount of natural gas transported for the needs of Latvian residents reached 23.0 TWh, which is 2% less than last year.

The international credit rating agency "S&P Global Ratings" has assessed and assigned AST a long-term credit rating of A-/Stable.

The unaudited report of the AST Group for the nine months of 2023 can be found on the AST website https://www.ast.lv/en/content/financial-statements#UCFS

About JSC "Augstsprieguma tīkls"

JSC "Augstsprieguma tīkls" (AST) is an independent transmission system operator, which operates the electric power transmission network ensuring continuous, safe and sustainably efficient electric power supply in Latvia. AST’s vision is to become the region’s leading transmission system operator through driving development and innovation oriented changes. AST holds 68.46% of the shares of the natural gas transmission and storage system operator JSC "Conexus Baltic Grid".

Additional information:

Līva Jēgere

Head of Communications

T+371 26151344

E-mail: liva.jegere@ast.lv