Obligatory electricity surcharge

1/23/2013 10:18 AM EST 

Liepajas metalurgs
Company Announcement

Obligatory electricity surcharge

Liepaja, 2013-01-23 16:18 CET (GLOBE NEWSWIRE) -- Joint Stock Company “Liepajas
Metalurgs” informs and clarifies the material published in the media in the
following way: 

Last week the Board of JSC “Liepajas Metalurgs” decided to terminate payments
of the obligatory electricity surcharge, which is acting as support mechanism
for electricity producers. It is already mentioned previously that in 2013 it
is planned to increase the attributing cost of the obligatory electricity
surcharge for 1 KWh, according with the last forecasts the increase will be up
to 53,6%. During the year 2008 – 2012 JSC “Liepajas Metalurgs” made the
payments for the obligatory electricity surcharge in amount of LVL 10,9
million. The payment for the obligatory electricity surcharge in the year 2013
will reach LVL 9,2 million, if the planned increase for the obligatory
electricity surcharge  in the year 2013 will come into force. The increasing
payment for the obligatory electricity surcharge is dramatically affecting the
financial status of the company that is why it is decided not to pay the
obligatory electricity surcharge portion but to direct this amount for settling
obligations. 

During the meeting of Saeima Economic, Agricultural, Environmental and Regional
Policy Committee in January 22, 2013, the Minister of Economics Mr. Daniels
Pavluts introduces the deputies with Report of the Ministry of Ecomonics for
the electricity price increase risk. It is to be added that in other European
countries such high obligatory electricity surcharge with the electric power
prices is not applied to the steel producers. This dramatically affects
competitiveness of JSC “Liepajas Metalurgs”. 

Commenting upon the information published in the media on the non-extension of
credit lines Joint Stock Company “Liepajas Metalurgs” is stating that the
existing credit lines in the amounts as defined previously have been extended
for the year 2013. 


         Liga Šenfelde
         Assistant of chief Economist
         63455926,  
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Obligatory electricity surcharge