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Here, opposition Social Democrats are already proposing a reduction in the value-added tax on gas and electricity. The governors’ representatives do not reject such a project and promise to consider it. But opposition peasants say this is not enough and are demanding that the state energy companies themselves cut tariffs, much less at the expense of their profits.
Romasis Vaitekūnas from Vilnius heats his house on the outskirts of the city with natural gas. Hot water is also prepared by a gas boiler. So the news is that gas, like all domestic consumers in the country, costs you up to 50 percent as of this month. more expensive, sad. Romasis estimates that for him a house of 170 square meters during the heating season, the gas bill will increase by 100 euros per month.
“We feel discriminated against. Now about 200 euros in winter per month. It’s guaranteed that the price will go up 100 euros per month, ”he says.
Starting this month, electricity will be more expensive for the population, although less than gas, on average 8%. However, this will also save Romomas more money.
“The total amount will be 30 to 40 euros per month, and now 20 to 25 euros,” says the man.
He explains to Energy that gas and electricity prices in Lithuania are rising as they rise in world markets as demand increases following the coronavirus slowdown. Prime Minister Šimonytė has stated that she does not interfere with the decisions of the independent State Energy Regulatory Council regarding prices.
However, the Social Democrats ask that they not be branded and that prices be reduced. They filed an amendment to the law to give household electricity and gas consumers a 9 percent discount. VAT rate instead of the current 21%. As a result, electricity and gas could fall in price by about a tenth.
“Significantly, 50 percent. Gas, 8 percent. Electricity, is a huge jump right away, however, let’s calculate who uses gas and electricity for heating. At the same time, other goods and services will grow. Again, from the same pocket for one person, it is necessary to find ways to compensate for the increase in prices for people with mustaches, ”explains Vilija Blinkevičiūtė, president of the Social Democratic Party.
Conservatives are not categorically opposed to the opposition Social Democrats’ proposal. Mykolas Majauskas, president of the Seimas Budget and Finance Commission, does not oppose the consideration of the benefits offered by the Socdems, but he does not yet promise to support them. He most doubts the benefits of the benefit to electricity consumers, because next year the prices for most domestic consumers will no longer be set by the energy price council, but will be offered by competing electricity providers, which the Most consumers will have a choice by the end of this year.
“The gas market is regulated, the VAT relief could be beneficial, since all the benefits of the reduction would go to the consumer and not to the producer. And the electricity market is different. As of the New Year, it will not be regulated, the benefits will not necessarily reach the consumer ”, says the president of the Seimas Committee, conservative Mykolas Majauskas.
Opposition peasants also support Socdem’s proposal to cut VAT, but say this is not enough and are urging the energy companies themselves to push to lower electricity and gas prices.
“It would be logical that when prices rise in global markets, companies should show solidarity, not shift the entire burden to the population. Reduce your earnings for at least that year, ”says Deividas Labanavičius, a member of the Seimas and a“ farmer ”.
Economists watching gas and electricity prices in global markets say they are already seeing signs of stabilization.
“The price of raw materials should stabilize or even fall. These are the prices of electricity, gas and oil. In autumn-winter, the price of electricity should stabilize and should not grow,” says Alexander Izgorodin, Brandnomika’s economist.
Post-pandemic growth in gas and electricity prices so far is slowing down, according to the economist. In autumn, he said, the COVID virus is likely to spread again in Europe and America, which will reduce the demand for raw materials and at the same time curb their prices.
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