Eesti Energia subsidiaries in Latvia and Lithuania report profits
Although the price of electricity declined in 2016, the subsidiaries of state-owned energy company Eesti Energia, Enefit SIA in Latvia and Enefit UAB in Lithuania, ended the year with record results.
According to head of power sales at Eesti Energia, Karla Agan, just as for the Eesti Energia group, last year had also been very successful for its Baltic subsidiaries. “In Latvia we sold 1,130 and in Lithuania 544.5 GWh of electric energy last year. In Latvia, electricity sales grew by 17 GWh, and in Lithuania by 78 GWh compared to the previous year. The general decline in the price of electricity in Latvia and Lithuania also affected the revenue of our companies operating in these countries, which declined by 10 percent and 3 percent respectively. In Latvia, Enefit’s revenue totaled €47.75 million, and in Lithuania €23 million,” Agan said, adding that both companies had still reported a profit that totaled €900,000 in Latvia and nearly €2.2 million in Lithuania.
In Latvia and Lithuania, Enefit was able to sell electricity at a competitive fixed price. It sold fixed-price products, products indexed to the exchange price, and green energy. In 2016, the launch of the NordBalt power link narrowed differences in the Baltic electricity prices as cheaper hydroelectric and nuclear energy transmitted from Sweden to Lithuania lowered the Latvian and Lithuanian market prices.
Eesti Energia’s subsidiary Enefit SIA has more than 2,000 customers in Latvia, and Enefit UAB has more than 900 customers in Lithuania. Both subsidiaries increased their customer portfolio by around 10 percent last year. In 2016, Enefit’s market share in Latvia and Lithuania was 16 percent and 5 percent respectively. Across all three Baltic states, the market share of Eesti Energia is 26 percent.
Plans to start selling gas in Latvia and Lithuania
After having entered the Estonian market relatively successfully, Eesti Energia is also planning to start selling gas in Latvia and Lithuania. According to a press release, they are ready to get going in Latvia and currently waiting for confirmation of tariffs and rules applicable for their bid. They were also considering selling electricity to households.
The company is optimistic about its chances of launching natural gas sales to Lithuanian enterprises in early 2018. There were signs that state-owned Russian gas giant Gazprom would stop offering special prices to some sellers, which would then result in the gas market becoming more active. “We believe that Eesti Energia’s experience in natural gas sales provides us with necessary knowledge for being successful also in Lithuania,” Agan said.
Editor: Dario Cavegn