Information on Resolution of National Control Commission for Prices and Energy.

The National Control Commission for Prices and Energy (NCCPE) at the meeting of
December 29, 31 resolved to unilaterally adjust and announce the procedure of
electricity prices and tariffs application in 2009 and void NCCPE's October 31,
2008 Resolution No. O3-175 “With Regard to Publishing of Electricity
Transmission Price, Tariffs and their Application Procedure“ (Pr. rel., 2008,
No. 85(1)-1102). 
By this document NCCPE revoked the non-preferential electricity transmission
service price of LTC3.45/kWh, published on October 31, 2008 and reduced it to
LTC2.4kWh (VAT excluded). Moreover, certain changes were made in prices of
capacity reservation, public obligation services and other services (further
information is available at the Commission‘s website   http://www.regula.lt).
According Mr. Vilius Bernatonis, Member of the Board of LEO LT AB, if such
electricity prices are approved, next year the company‘s subsidiaries may be
facing a loss. “By this decision there's an actual reduction in electricity
transportation price, although the generation price has gone up, whereas the
power consumption may decrease. All of these circumstances lead to a serious
risk that the companies will bear loss”, - said Mr.Bernatonis. 
As the News Agency BNS was told by Mrs.Zita Adomaitienė, Deputy Head of
Division of Electricity of NCCPE, the price of additional service increases
only by LTC 0.14 although such increase is insufficient and therefore the
joint-stock company Lietuvos Energija from the provision of this service will
bear loss. According to her, this price should have been set at LTC1.46 
Information about NCCPE resolution's impact on the company‘s operations during
2009 by the joint stock company Lietuvos Energija will be published subsequent
to the review and balance of 2009 operations in accordance with requirements
applied for publishing for such information. 
        
Ona Garniene
Senior Accountant 
Phone 370 5 2782457