Lietuvos energija, AB - Notification on material event

New Version of the Law on Electricity Takes Effect

Elektrėnai, Lithuania, 2012-02-08 08:29 CET (GLOBE NEWSWIRE) -- 

The Law on Electricity adopted on 07.02.2012 provides the legal framework for
the development and enhancement of the competitiveness of the Lithuanian
electricity market and ensures separation of the activities of the power
distribution system operator from other power sector enterprises. The profit
margin of power sector enterprises will be regulated by the National Control
Commission for Prices and Energy. 

Article 68 of the Law lays down that the National Control Commission for Prices
and Energy (hereinafter referred to as the Commission) shall establish
obligations to provide services at cost-oriented prices with regard to the
reasonable return on investment. The Law provides that if the Commission,
following the Rules of Electricity Market Research, investigates the market and
establishes that the electricity producer has a great market influence, the
Commission shall be entitled to impose the obligations specified in Article
68(1) of the Law. The provisions concerning the normative profit set by the
Commission for power sector enterprises have been repealed by this version of
the Law. The Commission shall set the return on investment in relation to the
criteria specified in the Law. 

Pursuant to the new provisions, the Government shall approve the list of public
interest services (hereinafter referred to as VIAP) and the procedure of the
provision thereof as well as appoint the administrator of VIAP funds.
Previously, the Ministry of Energy of the Republic of Lithuania appointed the
VIAP list and funds administrator. 

The full text of new wording of the Law is available online at www.lrs.lt, the
official website of Seimas of the Republic of Lithuania (the Parliament of the
Republic of Lithuania). State institutions shall prepare and adopt secondary
legislation required for implementation of Law. 


         Jūratė Kavaliauskaitė
         Head of Communications, Lietuvos energija, AB
         Phone: +370 528 33691
         E-mail: jurate.kavaliauskaite@le.lt