Government Watch. Easier Access to Electricity for Business

The Lithuanian Free Market Institute has examined the Draft Law on Amending Articles 2, 3, 4, 6, 7, 9, 10, 18, 31, 34, 39, 40, 41, 43, 44, 49, 51, 52, 58, 67, 69, 70, 71, 72, 74, 75 and Supplementing Article 39 of the Law on Electricity of the Republic of Lithuania and submitted its comments and proposals to relative legislative bodies.

In its position paper the Lithuanian Free Market Institute proposes to:

1) Supplement Article 67(6) of the law to allow non-household consumers, in accordance with the procedure established by law, to perform the works necessary to connect to the electricity grid, to cover full costs araising from the works performed, and to cede the ownership rights of the grids and electrical equipment established to the network operator.

This would allow for a faster connection to electricity grids as well as strengthen Lithuania’s standing in the World Bank’s Doing Business Index that is listed among the Government’s priorities. Moreover, the accelerated process of getting electricity will ensure faster business development and a prompt response to market developments thus improving the framework conditions for business. If implemented, the proposal would also allow to finance the connection to electricity grids by the customer himself (as opposed to the current rules that require non-household consumers to cover 40 per cent of the costs). This will bring mutual benefit as some non-household consumers have interest in getting electricity faster and are willing to cover the expenditure related.

2) Supplement Article 67(6) of the law to allow non-household consumers to connect to electricity grids during winter or under similar conditions, to bear the difference in costs related, and to allow the operator to organise the connection works when their price is higher due to the season or other objective reasons.

This would accelerate the process of getting electricity and improve the conditions for businesses who prioritise time over costs.

3) Supplement Article 70 with paragraph 10 that would allow the operator to autonomously address the question of performing connection works in the state or municipality-owned land.

This would decrease the administrative burden on consumers that is among the priorities of the Ministry of Economy.

The full position paper (in Lithuanian) is available at