Dainius Kreivys, the conservative minister of energy, said that the biggest factor in the rise of electricity prices was the tenfold increase in the price of natural gas due to Russia’s “energy war against Europe”.
Kreivys answered questions about energy prices and the government’s measures to contain them in the Lithuanian parliament, Seimas, in the interpellation procedure initiated by opposition MPs.
Moreover, according to the minister, a dry summer in Scandinavia, the threefold increase in CO2 emissions taxes, limited interconnector capacity due to climatic conditions and planned maintenance work, and the situation in the electricity markets of the EU’s major countries have all contributed to ballooning energy prices in Lithuania.
“A particularly important factor in the high energy prices in Lithuania is the severe reduction in electricity generation capacity. After the closure of the Ignalina nuclear power plant in 2010, Lithuania suddenly found itself in a deep deficit in electricity generation and only produces about a third of the energy it consumes,” said Minister Kreivys in response to the questions of the interpellation.
He also stressed that “the war in Ukraine will end, the Kremlin regime will fall, Ukraine will stand on its feet, and this Russian energy war against Europe will also end”.
MP Andrius Mazuronis, of the opposition Labour Party, asked the energy minister why the state-owned company Ignitis Grupe was investing in projects in other countries and not in Lithuania, and whether selling a stake in the company was not a “critical mistake”.
“The state has a duty to manage critical energy infrastructure and it does. This includes distribution networks, transmission networks, gas distribution and transmission networks. Production has always been and still is the business of private companies in Europe,” Kreivys said.
He noted that the sale of shares in Ignis was a decision of a previous government: “You should probably ask them what the reasons were.”
“I would like to congratulate them on the fact that the money made by Ignitis in other countries is often used to compensate our people for energy prices, as shown by their balance sheets,” the minister said.
Social Democrat Eugenijus Sabutis stressed that the interpellation was initiated because the Ministry of Energy had not prepared for the surge in energy prices.
“The minister can no longer shirk his responsibility and continue to create confusion in society. It would be a mistake to think that this interpellation is only necessary for the opposition and only for political dividends or politicking,” Sabutis said. “This is what has led us to the situation we have today.”
In his answers to the interpellation questions, Kreivys said that the crisis of energy prices was not helped by previous governments.
According to Sabutis, however, Kreivys has been in the office for more than two years and had more than enough time to correct the mistakes of previous governments.
“For almost two years we have not heard about the terrible legacy from the previous governments and how the energy sector was not developed for 10 years. We started to hear such messages from him only recently, when the energy price situation got out of control,” said Sabutis.
Algirdas Butkevicius of the Democrats “For Lithuania” group reproached the Ministry of Energy for responding too late to rising gas and electricity prices.
“Why didn’t you react in autumn of 2021, when many countries were already broadcasting in Europe that energy prices were rising, and your reaction was only in May?” asked Butkevicius.
After the questioning, a special commission decided, in a vote of 6 to 5, to accept Kreivys’ explanations. The motion has to pass a vote in the parliament.
If the parliament decides that the minister’s answers to the questions were unsatisfactory, a resolution of no confidence must be adopted by secret ballot. More than half of all MPs, at least 71 out of 141, must support the resolution.
The no-confidence motion against the energy minister was launched by MPs of the Social Democratic Party over a “critical situation” in the energy sector.
This is the third interpellation initiated against a member of this government. In late 2021, Health Minister Arunas Dulkys received an interpellation over his strategy for the Covid-19 pandemic. In June, Agriculture Minister Kestutis Navickas was subjected to interpellation as well. In both cases, the ministers retained their posts.
In addition, the opposition expressed plans to interpellate Environment Minister Simonas Gentvilas, Foreign Minister Gabrielius Landsbergis and Economy Minister Ausrine Armonaite.
An interpellation of a minister can be initiated by at least one-fifth (29) of all MPs. (LRT/Business World Magazine)