Regulatory asset base and regulatory tariff calculation

Vilnius is the biggest DH system in Lithuania totaling 2,7 TWh of annual heat demand. After 15-year lease contract to private operator VST reclaimed its operations and had to set new RAB and heat tariffs. Together with the evaluation of the technical state, the project carried out the economic & financial evaluation of the assets according to current regulation (including detailed review of formal approval, funding sources, actual utilization, value covered by historic tariffs, etc.) calculating RAB and corresponding rate on investment (i.e. allowed profit). Simultaneously the actual and planned costs were estimated calculating new heating tariffs. RAB and new tariffs were successfully reviewed and approved by The National Energy Regulatory Council.