Electricity sector

Implementation of the Third Energy Package

In 2009, the EU adopted the Third Energy Package, a package of legislative measures aimed at liberalising EU energy markets.  Based on the ownership unbundling requirements of the Third Energy Package, Lithuania has reformed its electricity sector by separating transmission from generation and supply activities.  Ownership unbundling is aimed at increasing the overall efficiency of the electricity system, preventing discrimination against new market participants willing to connect to the grid, optimising the use and development of infrastructure, incentivising economic investment and ensuring competitive prices for electricity consumers.

In 2010, four blocks of energy companies were established, comprising energy transmission, production, distribution and maintenance activities.  The production block consists of Lietuvos Energijos Gamyba AB (“Lietuvos Energijos Gamyba”) which was established in August 2011 and includes the Elektrėnai Thermal Power Plant, the Kaunas Hydroelectric Power Plant and the Kruonis Pumped Storage Plant.  In July 2012, the Government adopted a resolution thereby approving actions necessary to conclude the separation of transmission of electricity activities from generation and supply activities.  At the end of September 2012 the implementation of EU Third Energy Package for the electricity sector was completed.

On 27 August 2013, the procedure for the certification of Litgrid, AB (“Litgrid”), Lithuanian electricity transmission system operator, was successfully completed in accordance with the provisions of the EU Third Energy Package that obliges Member States to separate the electricity transmission operations from power and gas generation and distribution. Both the national regulator and the European Commission have officially recognised that the company fully complies with the requirements for the separation, transparency and independence laid down for electricity transmission system operators in the EU and Lithuanian legislation.

Legal acts