Energy, Legislation, Lithuania

"We do not say that private sector will be banned from participating in the implementation of projects envisaged by the Government. But it has been stated clearly: the price will be regulated. If a producer are capable of producing within this price then they are welcome, but no speculations will be allowed as it was done previously," the PM said to the radio Ziniu Radijas on Thursday.

According to Butkevicius, history has shown that when the Conservatives and the Liberals liberalised the heating productionn sector the changes did not bring any benefits to residents, while heating prices grew.

"I remember those times when the Conservatives and the Liberals liberalised this sector, we all saw the consequences. The PSO (Public service obligation – Elta) programme had accumulated over LTL 800 million (EUR 232 million) and all of this was paid by electricity consumers. When it comes to certain cogeneration plants for heat and energy production, the sector used to be unregulated, as a result of which certain companies managed to earn up to LTL 70 million (EUR 20 million) in three months. When their regulation was launched we saved up to LTL 65 million (EUR 18.8 million) in four months in Vilnius city only," he said.

It is planned to open a complex of waste and biofuel- fired plants in Vilnius, whose thermal power could seek up to 275 MW, electrical power – up to 145 MW. Electricity produced from biofuel would be sold at market price and its production would not require funds from the PSO budget which would allow saving up to EUR 49 million a year.