The Lithuanian government will provide partial compensation to customers of Perlas Energija, an independent electricity supplier, after its announcement of the suspension of operations, Energy Minister Danius Kreivys has said.
“Perlas Energija consumers from the first and second electricity market liberalisation phase can choose another electricity supplier, and they should do it until September 1,” Kreivys told reporters.
“If they fail to do so, these customers will receive electricity from the guaranteed supply temporarily until October 1. From September 1 to October 1, they will receive electricity for a price that is close to the public supply price,” he added.
According to Kreivys, “the difference between the guaranteed supply price and the public supply price will be compensated by the government during that period”.
The public supply price stood at 33 cents per kWh in the second half of this year, reaching 24 cents once the state compensation is applied. The guaranteed supply price depends on the price of electricity on the exchange and fluctuates between 39 and 82 cents per kWh, plus a 25% ESO (Electricity Transmission Operator) premium, in the second half of this year.
The minister also expressed his negative opinion of Perlas Energija’s move.
“I have a very negative view of Perlas Energija’s decision, because the company is in this way placing its business risks onto the shoulders of the state and the public. This is unacceptable,” he said.
On August 5, Perlas Energija announced its decision to change contracts for all its customers and to move those on fixed-price electricity plans to the variable-price plan. The latter’s tariffs depend on the price of electricity on the electricity exchange.
After the move, some 20,000 customers terminated their contracts, and Perlas Energija announced on August 18 it was suspending its operations.
The company will be closed down after it sells its assets, pays compensations to customers and settles up with its creditors and partners.
“The assets will be valued after they are sold, but based on today’s data, they amount to around 15 million euros,” Vilius Juraitis, CEO of Perlas Energija, told a press conference on August 18.
“By closing our operations today, we are ensuring that our customers suffer the least damage,” he added.
According to Juraitis, financial instruments used by the company to hedge against electricity price fluctuations make up around 96% of its assets.
Perlas Energija’s financial liabilities, including compensation to customers, exceed 14 million euros, he said. (LRT/Business World Magazine)
