I.imonyt: the possibility of postponing the deadline for the liberalization of the electricity market is being discussed

The government will definitely make proposals, (…) we appreciate that this is a temporary increase, very sudden and will equalize over time, this is how it will be implemented during the period, it will require a change in the law, said Prime Minister al Seimas on Tuesday.

According to her, the Ministry of Energy is already preparing amendments, discussions and postponement of the deadline for the liberalization of the electricity market are ongoing.

If we see that it brings additional benefits to consumers, we will also stick with that decision, says I. imonyt.

He also emphasized that additional compensation for heating will be provided for private companies.

Over time, the situation should stabilize and the increase will not have such an impact on consumers, the Prime Minister said.

Advisor to President Jaroslav Neveroviius called for postponing the second stage of the liberalization of the electricity market, restricting the possibility of raising regulated energy prices and improving the availability of compensation for heating.

Because the market can be considered, this extension can be considered for the final period, a period in which companies have to choose an independent supplier. Maybe it will be possible to postpone a small deadline and not require the company to choose now, until the end of the year, maybe give it a year, maybe half a year, J. Neveroviius told radio Tuesday.

According to him, the law could prevent drastic price increases in the energy sector.

Legislative changes are being considered that would require a great response from the market so that those prices do not change drastically, so that they (mons BNS) manage their risks through contracts. (…) the law should simply lead to such a requirement that a 30% or 40% change (price increase for consumers in the SNB) be considered, but no more, said the president’s adviser.

Neveroviius says that energy companies must seize every opportunity to stabilize prices.

They have a constant analyst, a professional manager who must use all means and take every opportunity to stabilize prices, said the adviser to the president.

According to him, almost 21% of the population is at risk of poverty, and only about 3.5%, or 95,000 people, receive compensation for heating.

Obviously, there is a problem with the availability of support. Work is needed to better inform companies on how to apply for compensation, reduce red tape and possibly also increase the availability and amount of compensation, the presidential adviser said.

He emphasized that the municipality could be abusive and not adequately inform companies about the conditions to receive compensation for heating.

There is simply a lack of information, (…) not necessarily ambitious and proactive in informing the population. The money that is not used to pay compensation is used for other purposes, said J. Neveroviius.

The price of electricity for the population with the lowest consumption (up to 1000 kWh per year) may increase by approximately 20% from next year, for gas companies by 50% and for consumers who heat their homes with gas by about 80%. according to the State Energy Regulatory Council (VERT).

However, its president says that an attempt will be made to cut the increase in gas prices in half, but this will also require a government decision.

Large consumers of electricity (consuming 1,000,000 kWh per year), mainly multi-year residents, will have to choose an independent supplier in mid-December if the electricity market is liberalized. For them, depending on the provider and the chosen plan, electricity can get 2050% more expensive from January.

Consumers consuming up to 1,000 kWh per year will have to choose it in mid-December next year.

Enefit: the term pratsimas neisprs

Vytenis Koryzna, CEO of independent electricity provider Enefit, says that postponing the deadline will not solve the problem.

Unfortunately, extending the deadline for liberalization cannot solve the problem of energy prices on the stock market. The postponement of the term and the possibility that a part of the consumer remains in the public offer requires the increase of the regulated price, which is the condition for the payment of the difference in the subsequent period after increasing the regulated part of the public offer. price. For example, if the price on the energy exchange reaches 100 Eur / MWh, and we sell around 50 Eur / MWh when regulating the market, there is a loss of 50 Eur, which creeps forward, said V Koryzna in his comment. Unless the price difference is financed by a public provider that assumes the associated losses. As the largest shareholder in the state today is the state, it is the state that has suffered losses through dividends or investment deferrals and other factors that are not good practice.

It also points out that no one can guarantee how energy prices will change in the future.

Forecasts suggest that high electricity prices will continue as long as gas supply and CO2 packaging permit prices have a detrimental effect on electricity prices. As we, as a state, also depend on external factors, in this case, the price of imported gas will be the source of energy, says the CEO of Enefit, which operates in this sector.

V. Koryzna recalls that consumers who have already chosen an independent provider are important when thinking about the term liberalization.

we currently have almost 30%, that is, more than 450,000 inhabitants, who have already made their decision. For this reason, it is very important to create equal opportunities for all and define in advance how to avoid discrimination against those who have already chosen an independent provider, said V. Koryzna.

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