Baltic States – CIS, Energy, Gas, Legislation, Lithuania

In its findings on pricing procedures for industrial consumers for 2015-2016 the VKEKK questioned if Lietuvos Duju Tiekimas has major influence in the natural gas market as a new company. Based on this, the VKEKK decided that it is not obliged to harmonise pricing procedures.

However, AB Lietuvos Duju Tiekimas assures such a decision is incomprehensible.

Mantas Mikalajunas, Director General of Lietuvos Duju Tiekimas, says the VKEKK is aware that the company took over all natural gas supply activities from Lietuvos Dujos in November and supplies gas to more than 550,000 private and industrial consumers. According to him, the commission itself harmonised the plans on the separation of Lietuvos Dujos distribution and supply activities.

Pricing procedures for industrial consumers for 2015-2016 were prepared following the Government's resolution. The resolution established how in the upcoming two years to use the discount for gas received from Gazprom.

According to Mikalajunas, pricing would be favourable to Lithuanian industrial consumers for the next two years. The aggregate discount in 2015-2016 stands at LTL 281 million (EUR 81.3 million).

Although the National Commission for Energy Control and Prices (VKEKK) has not harmonised pricing for industrial consumers prepared by gas supply company Lietuvos Duju Tiekimas, these legal nuances should not hinder the reduction of gas price, says Minister of Energy Rokas Masiulis.

"The commission approves the main goal – gas price for consumers must be reduced next year. The fact that today (on Friday – ELTA) the VKEKK has not harmonised pricing submitted by Lietuvos Duju Tiekimas does not mean that consumers lose the possibility to recover LTL 281 million (EUR 81.3 million) for Gazprom's gas," Masiulis said in a statement.

According to the minister, the legal nuances can be easily solved.

"We will analyse the VKEKK's arguments and adopt the needed decision. The Government's resolution may be amended if needed, in order to reduce gas price for consumers next year," said the energy minister.