Ecology, Energy, EU – Baltic States, Investments, Legislation, Lithuania

On August 2nd, Litesko filed a counterclaim in the case of damages compensation where the administration of Alytus, southern Lithuania, demands to get back the heating company before the expiry of a lease contract. Furthermore, Alytus wants Litesko to compensate 14.227 million euros in damages for expensive heating supplies and unused and sold pollution allowances.

"Unfortunately, we have no other choice and have to state our conditions, in case the cooperation with the municipality is terminated," Alexander Husty, Litesko's CEO, said in a press release.

The 34 million euros claimed by Litesko includes 9 million euros for investments and 25 million euros for the biomass power plant owned by Litesko, if it is handed over to the city.

Milda Bucnyte, spokeswoman for a Kaunas court, confirmed to BNS that a plea from Litesko had been received on August 2nd.

Litesko and the Alytus municipality signed a 15-year contract on lease of the city's heating network in 2001, and the contract was extended until 2026 in 2005. Last September, the Competition Council concluded that the extension was unlawful. The Alytus administration consequently turned to court for termination of the contract ahead of time.