Status of power sector restructuring in Lithuania

Lithuanian electricity sector comprises joint stock company Lietuvos Energija, which is responsible for supplying the country with electric energy, the Ignalina NPP state enterprise, which generates more then three fourth of the entire electricity of Lithuania, CHPs run By municipalities of Kaunas and Vilnius, and a few power plants, owned by industrial enterprises, as well as private small hydro power plants. Joint stock company Lietuvos Energija is a vertically integrated monopoly, which has inherited drawbacks inherent in planned - administrational economy and is therefore now being restructured into a modern and effective structure capable of operating within market economy conditions. The main goals of restructuring would meet electricity economy requirements: clearly un bundle electricity generation costs from electricity transmission and distribution costs; create internal and external electricity market conditions by gradual transition to wholesale and retail electricity trade; create conditions for third party access; create favourable conditions for competition; provide a possibility to integrate with Baltic electricity market in progress