Lithuania is negotiating exemptions and compensations, as the European Commission is looking into ways to cut record-high electricity prices for consumers and proposes redistributing the excess revenues of low-cost power plants, Energy Minister Dainius Kreivys has said.
“Another measure proposed by the EC is how to cap generators that are cheaper than gas but get the same price as gas. Here, too, we have the problem that Lithuania does not have such generation and practically imports everything,” Kreivys said at the Lithuanian parliament Seimas on September 13.
“That is why we are negotiating with the EC, and we hope that we will be able to reach an agreement that Lithuania will be granted some exceptions, and we will also receive some compensation,” he added.
According to Kreivys, Lithuania and Luxembourg are the only countries in the EU that do not generate enough electricity for their needs.
“We are doing our best to make sure that our people do not suffer when Europe introduces certain price compensation mechanisms so that our people can also get compensations for those high prices,” the minister said.
The EU is considering introducing a price cap on gas imported from Russia or used for electricity generation as part of its solutions to bring down electricity prices, which have soared to record highs.
The Commission also proposes to limit the excess revenues of renewable, nuclear and coal power producers, which would reduce energy prices for businesses and consumers.
This option is not favourable for Lithuania, which imports most of its electricity and does not generate enough from renewable sources. The Energy Ministry argued that if the EU were to apply this model, electricity prices would remain high in Lithuania, while they would fall in electricity-producing countries.
Several EU countries, including Germany, support this method of reducing high electricity prices. Kreivys said that he had expressed Lithuania’s concerns to Berlin, and both countries were now cooperating to find a compromise. (LRT/Business World Magazine)