Government Watch. On the Prices of Electricity for Large Consumers

The Lithuanian Free Market Institute has examined a draft ministerial decree On the Approval of the Procedure for Regional Investment State Aid in Strategic Establishments of Technological Development and submitted its comments and proposals to relevant bodies.

In its position paper, LFMI agreed with the Ministry of Energy that high electricity prices are indeed a hindrance to large electricity consumers. LFMI noted that Public Service Obligations (PSO) in the field of electricity resulting from state policies make up a substantial part of the price of electricity and therefore decreasing the burden of PSO is a welcome step towards the right direction. In addition, LFMI drew the attention to Eurostat data showing relatively higher prices of electricity for large consumers in Lithuania as compared to other countries in the region that clearly reflect the effect of taxes and charges levied on the supply of electricity. Based on the above, LFMI called for creating a legislative base that would create favorable conditions for large consumers by allowing them to establish a direct connection to electricity transmission networks or providing a PSO exemption on self-produced electricity.

Read the full position paper (in Lithuanian) here.