Flexible price
Gas price
Gas price comprises: price index + supplier’s margin
- Price index = value of the Dutch TTF front month index for natural gas supply on the ICE exchange, Eur/MWh (wholesale price).
For example: for January 2023, the TTF price was 119.50 Eur/MWh, and for February – 64.78 Eur/MWh.
- Supplier’s margin (fixed price component) depends on your consumption, transmission capacity averaging costs, fees for the admission to the transmission system, balancing costs, purchasing costs, costs of supplier’s operations, your payment history, etc.
This margin is preliminary and depends on your consumption, transmission capacity averaging costs, fees for the admission to the transmission system, balancing costs, purchasing costs, costs of supplier’s operations, your payment history, etc.
Average monthly BGSI gas market price in 2023, EUR/MWh
Check the BGSI index values for the Lithuanian market area at the natural gas market here
Gas price
Choose this plan, if:
- you want to save in the long term;
- you want to pay the market price for natural gas;
- you wish to have flexible contract conditions.
It’s the most popular gas plan among our business customers.
What do I have to know about the ‘Flexible price’ plan?
After selecting this natural gas supply price plan, a sale and purchase contract of natural gas services will be concluded. Which means that you will not need to conclude additional agreements with natural gas transmission and distribution system operators.
Business customers pay for natural gas supplied and consumed (as a commodity) during the previous reporting month based on issued VAT invoice, which includes the amount payable for natural gas supply (supplier’s component):
Natural gas sale = gas consumption per month x (price index + supplier’s margin). The price alternates every month and mostly depends on wholesale price, i.e., the situation in the gas and other markets.
The amount payable for the remaining six gas price components – regulated activity (gas transmission, distribution and excise duty) are provided in the same VAT invoice. The sum of the components is distributed among the respective transmission and distribution operators and the State Tax Inspectorate (STI).
We issue VAT invoices to customers no sooner than the 3rd working day of the month, after we receive the relevant information from AB “Energijos skirstymo operatorius” (ESO).
BGSI gas supply index value is determined for the month as the weighted average of all sale and purchase contracts conducted during that month in the Lithuanian market area. The price value is provided on the first day of the next month on the GET Baltic website at: www.getbaltic.com. I.e., gas price becomes available after the end of the reporting month.
Weighted average is calculated based on how much natural gas was traded during a specific day and at what prices. The volume of each day of the month is multiplied by the price on that day, the results are added and divided by the total volume traded during the month. Which means that the more gas is traded during the days when the price is low, the lower the weighted price (EUR/MWh) will be. Usually, the natural gas price is cheapest during the warm season.
The supplier does not affect the market index value. The wholesale gas price and, in turn, the index value is affected by the factors such as: the development of the situation related to energy, geopolitical situation, weather conditions in Europe and other countries around the world, political decisions made by Europe and other countries, gas consumption intensity, supply, etc. The higher the gas demand, naturally, the higher the gas price increase.
The regulated part of the gas price (the rates for the part are established by the operators and National Energy Regulatory Council (NERC)) includes the following:
-
Transmission (AB “Amber Grid”);
- transmission capacity;
- transmitted volume;
- consumption capacity (transmission).
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Security component to the transmission price (AB “Amber Grid”, AB “Klaipėdos nafta”);
Liquefied natural gas (LNG) terminal’s additional component calculated during ordered/determined consumption capacity
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Distribution (ESO);
Distributed volume.
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Excise duty (STI);
Half of the excise tariff for natural gas applies to B2B = 0.00054 EUR/kWh (for business needs).
