Energy Market Actors
Electricity market
Structure of power sector
Assets | 2.698 mill. LTL |
|---|---|
Authorized capital | 2.698 mill. LTL (total equity and liabilities) |
Number of employees | 1.752 |
Shareholders | 96.5% Government of Lithuania, |
The main goal of Lietuvos Energija AB is ensure efficient operation of Lithuanian Power System.
Functions of Lietuvos Energija AB:
- Maintenance and development of transmission grid (high voltage 330-110 kV);
- Dispath control (coordinates the operation of Lithuanian power plants and neighboring energy systems, creates non-discriminatory conditions for all users of transmission grid, ensures balance of electricity generation and consumption);
- Elecricity trade ( organizes electricity trade, coordinates electricity export, import and transit; settles payments among Lithuanian and foreign electricity generators and suppliers).
Lietuvos Energija AB also owns Kaunas HPP and Kruonis HPSP for system balance and control functions.
Public suppliers
- Rytu Skirstomieji Tinklai AB (East Distribution Network)
- VST AB (Previously - West Distibution Network)
- Visagino energija" VI
"Rytu Skirstomieji Tinklai" AB and "VST" AB are distribution system operators. They supply electricity at consumer tariffs defined by an approved regulation when there is no possibility or preference to choose a supplier.
Independent suppliers:
18 suppliers had a license of independent suppliers in October 2008.
The list of the licensed suppliers are as follows:
- UAB "Prekybos namai Giro"
- UAB "Vilniaus energija"
- UAB "Imlitex"
- UAB "Energetikos tiekimo baze"
- VI Ignalinos atomine elektrine
- AB "Achema"
- UAB "Energijos realizacijos centras"
- AB Lietuvos elektrine
- AB "Mažeikiu nafta"
- UAB "Energijos sistemu servisas"
- UAB "E energija"
- AB "Klaipedos energija"
- UAB "Korelita"
- UAB "Fortis Energy"
- UAB "Lumen Balticum"
- UAB "Baltic Energy Partners"
- UAB "Scaent Baltic Energy"
- UAB "Latvenergo prekyba"
Ignalina Nuclear Power Plant
INPP operates the Nuclear Power Plant. The first unit of Ignalina NPP was closed in 2005. Due to the Treaty concerning the accession of the Republic of Lithuania to the European Union the second unit of Ignalina NPP shall be closed in 2009.
Status of deregulation
Companies can be players on the electricity market, if the have a licence. The market is based on bilateral agreements either between producer and supplier, or between market operator and producers. The deficient or surplus electricity quantities may be bought or sold at auctions.
Opening of the market:
January 2003: customers with a consumption of over 9 GWh in the previous year
July 2004: all customers (excluding residential).
After July 2007: all customers choose a supplier.
Access to the network:
Regulated Third Party Access
Regulator:
Competition in generation:
Authorisation procedure
Unbundling:
Generation, transmission and distribution are carried out by different companies.
Lietuvos Energija is TSO and Market Operator.
Tariff setting
The National Control Commission for Prices and Energy is obligated to regulate price cap of tariffs for transmission, distribution, publice service obligation. Prices of production are not regulated.
Oil and gas market
Oil and Gas
Oil
AB Geonafta: exploration and production; 11 wells; In 2007, the company produced 48.5 thousand tons of oil.
AB Mazeikiu Nafta: operates the only oil refinery of the country and the Baltic Region. It has absorbed two other companies (Birzai Naftotekis, transport of crude oil), and Butinge Nafta (management of marine terminal Butinge).
AB Mazeikiu Nafta is the main supplier of gasoline and diesel fuel for the Lithuanian, Latvian and Estonian markets. Since the end of 2006 the Polish Company PKN ORLEN is the main shareholder of the company.
AB Klaipedos Nafta: operates a marine oil terminal in Klapeda, with a capacity of 9 mill. tons of export/import oil products and crude oil per year.
ORLEN Lietuva: covers distribution network with 22 "ORLEN Lietuva" ir 13 "Ventus" stations. AB "Mažeikiu nafta" subsidiary company AB "Ventus-Nafta" controls "ORLEN Lietuva" distribution network. The main shareholder of AB "Mažeikiu nafta" is PKN ORLEN.
In 2003, UAB "Mazeikiu naftos" prekybos namai (trade house) was established by AB "Mazeikiu nafta" to sell products. Further, foreign companies, such as Shell, Statoil, Lukoil, Neste, as well as private Lithuanian companies, (e.g. Kvistija, Trevena, Vakoil, Saurida) are present in distribution.
Gas
Companies can be players on the electricity market, if the have a licence. In September 2008, one company had a licence for transmission (AB Lietuvos dujos), 6 companies had licences for distribution, and 12 companies had licences for supply.
AB Lietuvos Dujos: the national gas company, is a joint stock company. It covers import, transport, distribution and supply of natural gas. It has around 10 subsidiaries, one managing transmission, other regional distribution companies, and one for the manufacturing of gas equipment.
Shareholders of the AB Lietuvos dujos are the state (17,7%), E.ON Ruhrgas International AG“ (38,9%), OAO „Gazprom“ (37,1%) and other small shareholders (6,3%).
AB Dujotekana: activity is related to wholesale trading in natural and liquefied gas.
Coal market
There is no coal mining in Lithuania. Coal traders are UAB Aukštaitijos kuras, UAB Grasta, UAB Vikuras, UAB Samoras.
