Regarding the Networks segment’s distribution services income level for 2025

AB "Ignitis grupe” (hereinafter – the Group) informs that, pursuant to the Methodology for determining the price caps for electricity transmission, distribution and public supply services (link?in Lithuanian) and to the Methodology for determining the regulated prices in the Natural Gas sector (link in Lithuanian), on 17 October 2024 National Energy Regulatory Council (hereinafter – NERC) adopted the resolutions on the price caps for electricity distribution services of AB "Energijos skirstymo operatorius” (hereinafter – ESO) for 2025, on the income cap for gas distribution service of ESO for 2025 and on other regulatory components for 2025 (hereinafter – the Resolutions) (link in Lithuanian).

?	?	2025	2024	D	D, %
Total	?	?	?	?	?
Income cap	EURm	378.6	373.6	5.0	1.3%
RAB1	EURm	1,795	1,584	210.7	13.3%
WACC (weighted average)	%	5.79	5.08	0.71 pp	n/a
D&A (regulatory)	EURm	99.5	79.2	20.3	25.6%
Additional tariff component	EURm	37.5	40.0	(2.5)	(6.2%)
Electricity distribution	?	?	?	?	?
Income cap	EURm	321.6	309.1	12.5	4.0%
RAB1	EURm	1,541	1,332	208.9	15.7%
WACC	%	5.82	5.09	0.73 pp	n/a
D&A (regulatory)	EURm	88.6	67.6	21.0	31.1%
Additional tariff component	EURm	37.5	40.0	(2.5)	(6.2%)
Natural gas distribution	?	?	?	?	?
Income cap	EURm	57.1	64.6	(7.5)	(11.6%)
RAB1	EURm	254	253	1.9	0.7%
WACC	%	5.64	5.03	0.61 pp	n/a
D&A (regulatory)	EURm	11.0	11.7	(0.7)	(6.3%)

^{1 Regulated asset base (RAB) at the beginning of the period.}
According to the Resolutions, NERC established an allowed income level for ESO’s electricity distribution services for 2025, comprising EUR 321.6 million, which is 4.0% higher compared to the income level set for the year 2024 (EUR 309.1 million), and an income level for the natural gas distribution service for 2025, comprising EUR 57.1 million, which is 11.6% lower compared to the income level set for the year 2024 (EUR 64.6 million).  

The changes in income level were primarily caused by:

1. lower electricity technological expenses, which have decreased due to lower electricity purchase prices (the electricity technological expenses decreased by 19.9% compared to the electricity technological expenses in 2024);

2. lower natural gas technological expenses, which have decreased due to lower natural gas prices (the natural gas technological expenses decreased by 22.0% compared to the natural gas technological expenses in 2024);  

3. the income level for the year 2025 has increased due to the growth in operating costs, which reflects the tendencies of macroeconomic indicators and the additional repair costs required for the electricity distribution network for the year 2025; 

4. higher return on investment, which increases as a result of investments into ESO assets and the higher weighted cost of capital (weigthed average cost of capital, WACC).

The information provided in this announcement does not affect the Group’s Adjusted EBITDA and Investments guidance for 2024.

For additional information, please contact: 

Laura Beganskiene  
+370 654 24958  
laura.beganskiene@ignitis.lt