Electricity Trading

Wholesale trade in the electricity sector

Wholesale trade in the domestic market for electricity is conducted by two methods: trading under bilateral agreements and trading on the electricity exchange. The aim is to make the trading on the exchange the main method of wholesale supply of electricity.

Since 18 June 2012, wholesale trading on the Lithuanian Electricity Exchange is administered by Nord Pool Spot AS, an operator of the Nordic and Baltic electricity exchanges.

Functions of Nord Pool Spot AS:

• Organising the wholesale trade in electricity on the exchange;
• Ensuring technical servicing and support at the trading location (the exchange);
• Publishing information on wholesale electricity trading on the exchange as well as information on the terms of operation of the exchange;
• Ensuring equal and non-discriminating conditions for all the participants in the exchange;
• Informing and consulting the participants in the exchange and other market participants on matters related to the organisation and operation of the exchange.

The Lithuanian Electricity Exchange has been fully integrated into the Nordic Electricity Exchange and all the principles of operation applied by other countries of the region are applicable to the Lithuanian Electricity Exchange as well. All trading on the exchange is advance trading: all electricity supply contracts are concluded ahead of consumption. The market participants may choose between two trading methods – day ahead trading or intraday trading. The trading is conducted for each hour of the future period individually (hourly trading).

Baltpool UAB, which had performed the functions of an electricity exchange operator until 18 June 2012, currently offers the participants in the exchange an alternative to the registration of long-term contracts: a market for auxiliary instruments to protect against the electricity price fluctuations on the exchange.   

Retail trade in the electricity sector

Retail trade in electricity (with the aim of supplying electricity to customers) can only be conducted by suppliers under agreements on retail sale – purchase of electricity concluded with customers. Customers are entitled to buy electricity from suppliers for their private use.