Electricity price hikes in Lithuania to push up production costs

Electricity price hikes in Lithuania to push up production costs
Published: 30 November 2009

Akmenes Cementas one of the biggest industrial consumers of electrical energy in Lithuania, will see its costs jump by LTL7m (EUR 2m) due to a hike in electricity prices early next year, the daily Lietuvos Rytas reported on Friday.

 "The arithmetic is simple: we need 123kWh of electricity to produce a ton of cement. If the price of electricity next year goes up by 0.05 litas, the production cost will rise by 6 litas per ton, and if the price goes up by 0.10 litas, it will rise by 12 litas. This doesn’t seem much, but annually this will lead to around LTL7m in additional costs," it quoted Akmenes Cementas CEO Arturas Zaremba as saying. It is not easy to calculate exactly how much the price of cement will increase because it is still not clear how the power exchange will operate and how much electricity will cost, he said.

The cement factory now purchases electricity directly from the Ignalina Nuclear Power Plant, which is slated to be shut down on the last day of this year.