Lithuania to reorganize power sector as per EU Third Energy Pacakge

5 May 2010 – The Lithuanian government has approved an amendment to the country’s electricity law to implement the EU’s third energy package of legislative reforms, which provides a new framework for competition in the energy sector, Lithuania’s energy ministry said.
According to Argus, the government also approved a plan for the reorganization of Lithuania’s power companies, which stipulates that the activities of electricity transmission, generation, distribution and maintenance must be unbundled into four separate companies. The state will retain control of all units.
The transmission grid, transmission system operator Litgrid and market operator Baltpool will be separated from parent company Lietuvos Energija, while the state-owned shares of the Lietuvos Elektrine power plant will be incorporated into the capital of Lietuvos Energija.
Litgrid, along with the transmission grid and Baltpool will be controlled by the government directly, in compliance with the EU’s reforms. Litgrid will be responsible for the continuation of interconnector projects with Sweden and Poland as well as the integration of the Lithuanian market into the Baltic and regional Nordic electricity markets.
Visagino Atomine Elektrine is responsible for the preparation of the new nuclear power plant project and will be the state-controlled company accountable for the government’s investment share in the plant. Construction of the plant will be managed by a project implementation company that will be established with the participation of a strategic investor and strategic partners. Visagino Atomine Elektrine will be a shareholder in Lietuvos Energija and in distribution network companies.
Distribution companies VST and Rytu Skirstomieji Tinklai will be merged into one company and remain under state ownership.