| Cap of cost of debt (interest rate), percent, Rd | 2,40 | The average interest rate during the most recent twelve-month period of long-term loans in euros given to non-financial corporations, as announced by the Bank of Lithuania, para 6 of Methodology on Rate of Return on Investments |
| Return on equity, percent, Re | | Para 9 of Methodology on Rate of Return on Investments |
| - for electricity undertakings, engaging in transmission; | 4,68 | |
| - for undertakings, recognized as having significant market power in electricity generation and reserve power markets; | | |
| - for undertakings, providing public service obligation, i.e. electricity generation in specified power plants (to ensure the security of electricity supply) as well as the assurance of electricity system reserves in specified power plants (to ensure the energy security); | | |
| - for setting tariffs of electricity produced using renewable energy sources. | | |
| - for electricity undertakings, engaging in distribution and public energy supply; | 4,73 | |
| - for undertakings, recognized as having significant market power in the market of independent energy supply. | | |
| Share of equity capital (optimal capital structure), E | 0,4 | Para 10 of Methodology on Rate of Return on Investments |
| Share of debt capital (optimal capital structure), D | 0,6 | Para 10 of Methodology on Rate of Return on Investments |
| Tax rate, m | 0,15 | The income tax rate applied in Lithuania |
| Risk-free rate of return on investments (in percent), Rf | 1,82 | The arithmetic mean of the average weighted profitability of the auctions of the Government bonds denominated in Litas (till December 31,2014) and Euros (from January 1, 2015) with the maturity period of no less than 3468 days), held during the recent ten-year period. |
| Equity risk premium , Rerp | 3,93 | The sum of the equity risk premium of the country with the developed capital market (the US) and the additional market risk premium of Lithuania. |
| | | US equity risk premium is defined as difference between the return on investments (in percent) in the US securities market during a last twenty years, and the rate of return on the US treasury bonds with a ten-year maturity, on the basis of the S&P 500 index announced by the rating agency Standard&Poor's and the data of the US treasury bonds announced by the bank of the US Federal Reserve System. |
| | | The additional market risk premium of Lithuania is determined as the difference between the risk ratio (in percent) corresponding to the credit rating of Lithuania and the risk ratio (in percent) corresponding to the US credit rating, on the basis of the data on prof. A. Damodaran website. |
| Beta coefficient (levered β) | | |
| - for electricity undertakings, engaging in transmission; | 0,73 | On the basis of the Report on Regulatory Frameworks for European Energy Networks published by the Council of European Energy Regulators (CEER), the arithmetic mean of the risk ratio in the electricity transmission sector of the European Union member states. |
| - for undertakings, recognized as having significant market power in electricity generation and reserve power markets; | | |
| - for undertakings, providing public service obligation, i.e. electricity generation in specified power plants (to ensure the security of electricity supply) as well as the assurance of electricity system reserves in specified power plants (to ensure the energy security); | | |
| - for setting tariffs of electricity produced using renewable energy sources. | | |
| - for electricity undertakings, engaging in distribution and independent energy supply; | 0,74 | On the basis of the Report on Regulatory Frameworks for European Energy Networks published by the Council of European Energy Regulators (CEER), the arithmetic mean of the risk ratio in the electricity distribution sector of the European Union member states |
| - for undertakings, recognized as having significant market power in the market of independent energy supply. | | |
| Actual weighted average cost of debt capital in electricity sector | 1,79 | Para 8 of Methodology on Rate of Return on Investments |
| Actual weighted average cost of debt capital in electricity sector sector without loans from international financial institutions, which are listed on page of Ministry of Finance of the Republic of Lithuania (https://finmin.lrv.lt/lt/es-ir-tarptautinis-bendradarbiavimas/tarptautines-finansu-institucijos), proc. | 1,93
| Para 7.1 and 7.2 of Methodology on Rate of Return on Investments |
