Lower prices for customers – greater value for Lietuvos Energija
During the three quarters of 2015, the State-managed group engaged in the improvement of value chain earned the highest ever comparative net profit of EUR 89.5 million, up by 9.1 % from the same time last year. The Group achieves better performance results even generating lower revenues. Due to its improved performance efficiency Lietuvos Energija Group is able to offer in 2016 more advantageous prices – for the next year the Company plans lower electricity tariffs, and grid access rates have been lowered since June.
Due to the responsible cost management within three quarters, Lietuvos Energija Group reduced its regular operating costs by as much as 13 % as compared to January-September 2014 (from EUR 91.2 million to EUR 79.3 million). Within that period the Company centralised its accounting, public procurement, human resources administration operations, completed the optimisation of its immovable property and vehicle fleet, achieved higher efficiency of the corporate IT and other servicing functions.
A more efficient infrastructure, accelerated processes and the use of internal resources facilitate increasing of the created value and our contribution to the State budget, and thus enabling us to decrease the prices of the services related to gas and electricity for customers. We have been improving our services and expanding their scope, which saves times and money of our customers and increases their satisfaction. Moreover, we shall not stop there – this year we have completed the value chain improvement programme, therefore we will meet the coming year even more flexible, efficient and largely customer-needs and value enhancement oriented.
During the third quarter of the year the Company laid down the foundations for the changes in the Group effective as of 1 January 2016: in addition the approved terms for the merger of the electricity distributor LESTO and the natural gas distributor Lietuvos dujos into a joint distribution network entity Energijos skirstymo operatorius (ESO), a principle of ‘single window' customer servicing by entities of the Group has been introduced, the entire customer servicing will be covered by a single trademark Gilė, future plans include a merger of Lietuvos dujų tiekimas and LITGAS. Other improvements concern contractors, electricity production and trade companies.
We have estimated that the improvements launched as of 2016 will in the course of the next five years generate benefit for consumers amounting to EUR 64 million, we will also be strengthening the Group and the enhancing the value it creates. Now a more efficient and dynamic group will be able to provide better quality services, create new services and contribute to creating a business-friendly environment in Lithuania.
The performance results of Lietuvos energija will allow, as of the beginning of the next year, to ensure the conditions that are even more advantageous for customers. The power grid connection rate for new customers was reduced this June. The electricity distribution tariff has been decreasing for the past four years in turn, estimated to further decrease this year for another 4 %.
Due to the responsible cost management within three quarters, Lietuvos Energija Group reduced its regular operating costs by as much as 13 % as compared to January-September 2014 (from EUR 91.2 million to EUR 79.3 million). Within that period the Company centralised its accounting, public procurement, human resources administration operations, completed the optimisation of its immovable property and vehicle fleet, achieved higher efficiency of the corporate IT and other servicing functions.
A more efficient infrastructure, accelerated processes and the use of internal resources facilitate increasing of the created value and our contribution to the State budget, and thus enabling us to decrease the prices of the services related to gas and electricity for customers. We have been improving our services and expanding their scope, which saves times and money of our customers and increases their satisfaction. Moreover, we shall not stop there – this year we have completed the value chain improvement programme, therefore we will meet the coming year even more flexible, efficient and largely customer-needs and value enhancement oriented.
During the third quarter of the year the Company laid down the foundations for the changes in the Group effective as of 1 January 2016: in addition the approved terms for the merger of the electricity distributor LESTO and the natural gas distributor Lietuvos dujos into a joint distribution network entity Energijos skirstymo operatorius (ESO), a principle of ‘single window' customer servicing by entities of the Group has been introduced, the entire customer servicing will be covered by a single trademark Gilė, future plans include a merger of Lietuvos dujų tiekimas and LITGAS. Other improvements concern contractors, electricity production and trade companies.
We have estimated that the improvements launched as of 2016 will in the course of the next five years generate benefit for consumers amounting to EUR 64 million, we will also be strengthening the Group and the enhancing the value it creates. Now a more efficient and dynamic group will be able to provide better quality services, create new services and contribute to creating a business-friendly environment in Lithuania.
The performance results of Lietuvos energija will allow, as of the beginning of the next year, to ensure the conditions that are even more advantageous for customers. The power grid connection rate for new customers was reduced this June. The electricity distribution tariff has been decreasing for the past four years in turn, estimated to further decrease this year for another 4 %.
