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International Internet Magazine. Baltic States news & analytics Tuesday, 02.09.2014, 21:53

Institute: Lithuania's consumers not protected in case of NPP failure

Petras Vaida, BC, Vilnius, 26.06.2012.Print version
The analysis of possible threats posed by the Visaginas nuclear power plant (NPP) project is not given proper attention. Even though political decisions cannot eliminate risks, the state nevertheless has to ensure that losses and damages of such investment projects, based on political decisions, would not become a burden for the energy consumers and tax payers, says the Lithuanian Free Market Institute (LLRI).

According to Zilvinas Silenas, the president of the LLRI, nobody can answer the question now what happens if the assumptions on which the scenario of the NPP is based, fail, writes LETA/ELTA.

 

"Neither the supporters nor the opponents of the project have so far created a mechanism to protect the consumers from the sad scenario of the nuclear plant," he says.

 

One of the key risks of the project may arise if the electricity produced at the new NPP is not competitive on the market. It is likely in such case for the consumers to become hostages of the government's decisions as they will be forced to buy expensive energy from the plant. Lithuania's legal framework already provides for certain mechanisms to force the consumers buy expensive electricity (for example, by limiting or banning the import of cheap energy).

 

Another risk pointed out by the LLRI is that the project may take longer than expected and as a result require more funds. Since Lithuania invests its public capital in the NPP, the country and its tax payers will be the ones to find extra funding with a growing price of the project.






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