F.A.Q.

What is an electricity provider?

In the electrical market, an electricity provider sells electricity to consumers. Providers have the right to sell electricity by two party contracts with manufacturers, balancing energy providers, and consumers. There are independent electricity providers and public providers.

What is an independent electricity provider? How does it differ from a public provider?

An independent provider is an enterprise that provides electricity to consumers and has the right to engage in independent electricity provision. A public provider is an enterprise charged with providing electricity to consumers in a certain region.

What are transmission and distribution network operators?

Two major enterprises operate in Lithuania and have exclusive rights to provide electrical transmission and distribution services:

  • AB Litgrid is the transmission system operator for national high-voltage networks.
  • Energijos Skirstymo Operatorius AB was established January 1 2016 merging LESTO AB and a joint-stock company Lietuvos dujos. ESO is controlled by state-owned group of energy companies “Lietuvos Energija”, one of the largest energy companies in the Baltic States. Main activities of ESO: electricity supply and distribution, natural gas distribution, guarantee supply of electricity and natural gas, introduction of electricity and gas, maintenance and development of electricity and gas distribution networks, security and reliability of energy distribution assurance.

What is liberalization?

The liberalization of Lithuania’s electricity market is planned to take several stages, each stage allowing a new group of consumers to choose an independent electricity provider:

  • Starting July 1, 2010, electricity consumers whose allowable energy use is 400 kW or more;
  • Starting January 1, 2011, electricity consumers whose allowable energy use is 100 kW or more;
  • Starting January 1, 2012, electricity consumers whose allowable energy use is 30 kW or more;
  • Starting January 1, 2013, regulated electricity rates will only apply to household consumers.

How many independent electricity providers are there in Lithuania?

The review of the National Control Commission for Prices and Energy determined that there were 73 registered independent electricity providers in 2014. There were 14 actively involved. The list of  independent electricity providers is updated regularly and made public by the National Control Commission for Prices and Energy.

What happens if I don’t choose an independent electricity provider?

Consumers who don’t choose an independent electricity provider or choose one that doesn’t provide electricity according to the conditions of the contract will receive their electricity from the guaranteed electricity provider. ESO is the guaranteed provider.

What are P.S.?

P.S. are public services. Every resident in the country pays the P.S. fee, which is 6.16 ct/kWh. The P.S. funds are used by renewable energy resources (RER) manufacturers, cogeneration plants, AB Lietuvos Elektrine (Lithuanian Power Plant), strategic projects, the connection of RER to distribution networks and the preparation for connecting these networks to manufacturers, RER balancing, and P.S. administration costs.

After I choose an independent electricity provider, how will I pay for my electricity?

Having chosen an independent electricity provider, customers will get two bills: one from the distribution network operator (ESO) for transmission service using the transmission and distribution networks, system services, and public services; the other, for electricity use from the independent provider.

Will the way electricity usage data is collected change after I choose an independent electricity provider?

Having chosen an independent electricity provider, the way electricity usage data is collected will not change. According to the deadlines and method set in the contract, but no later than the final day of the billing period, consumers must report to the operator (ESO) the data shown on the electricity meter and any other data. The independent electricity provider determines how the data should be submitted. At the end of the billing period, the operator submits consumer electricity usage data to providers and others in the electrical market according to the conditions, contents, and deadlines set forth in the contract.

What do I have to do to choose an independent electricity provider?

Three weeks before signing or canceling a contract for electricity with an independent electricity provider, consumers must inform the network operator handling the electricity in writing, as well as the public provider for that region. If consumers aren’t receiving electricity from a public provider, they should inform their guaranteed provider instead.

How does the Nord Pool Spot power market work?

The power market works according to ratified regulations—rules, which describe all the aspects of trade: the trade calendar, the forms of trade offers, fees, etc. There is a requirement in Lithuania that all electricity that is produced in other countries be bought at the electricity market. The power market works according to the principles of the Nord Pool Spot power market principles. The trading is done ahead of time: all electricity provision contracts are signed exactly one day ahead, for each hour of the coming day individually.