Challenges to the Electricity sector of the
Baltic States

June, 2013
Consumer bodies of the Baltic states
1) Latvian National Association for Consumer Protection

2) Tartu Consumer Advice and...
Challenges to the electricity sector of the
Baltic States
1) Completion of liberalisation of the Electricity market (Eston...
Challenges to the electricity sector of the
Baltic States
3) Significant troubles for renewable electricity development
fr...
Energy consumption in the Baltic Sea
countries 2010

Renewable energy

Natural gas

Fuel products

Nuclear energy

Solid f...
Challenges to the electricity sector of the
Baltic States (case of LV)

1) Rise of the Electricity tariffs (30 %) in March...
Challenges to the electricity sector of the
Baltic States (case of EE)

1) Rise of the Electricity tariffs (30-55 %) in 20...
Challenges to the electricity sector of the
Baltic States (case of LT)
1) Monopolisation trough further centralisation of ...
Challenges to the electricity sector of the
Baltic States (case of LT)
In reality, only partial electricity market liberal...
Challenges to the electricity sector of the
Baltic States
1) The Third Energy Package aims to ensure that
European citizen...
Challenges to the electricity sector of the
Baltic States

Due to the “Working Group Report on ADR in the Energy
Sector”, ...
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Citizens copenhagen dk_2013_june-2

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Citizens copenhagen dk_2013_june-2

  1. 1. Challenges to the Electricity sector of the Baltic States June, 2013
  2. 2. Consumer bodies of the Baltic states 1) Latvian National Association for Consumer Protection 2) Tartu Consumer Advice and Information Centre 3) Western Lithuanian Consumers Federation
  3. 3. Challenges to the electricity sector of the Baltic States 1) Completion of liberalisation of the Electricity market (Estonia 1st January 2013, Latvia 2014, Lithuania 1st January 2013) 2) Due to the Electricity market liberalisation price increase for household consumers EE - 30% for changing price (börsi hind+ marginaal) and 55% for fixed price LV - forecasting for 30% comparing with “start tariff” LT - increasing of electricity price isn’t relating directly to Electricity market liberalisation. This price is permanently increasing due to dominating Producer’s market. In further centralising State energy sector Government is free to add new expenses into final energy price Significant expansion of renewable electricity production.
  4. 4. Challenges to the electricity sector of the Baltic States 3) Significant troubles for renewable electricity development from dominating old kinds of energy (nuclear, gas, oil) forces side, strongly represented in leading parties of Lithuania. 4) Further centralisation of energy sector and enforcing of Producer’s market against natural World energy development in direction of decentralisation and Consumer’s market.
  5. 5. Energy consumption in the Baltic Sea countries 2010 Renewable energy Natural gas Fuel products Nuclear energy Solid fuel
  6. 6. Challenges to the electricity sector of the Baltic States (case of LV) 1) Rise of the Electricity tariffs (30 %) in March 2011, in Latvia and calculation of tariffs (8 000 consumers signed protest letter). 2) The Regional Administrative Court, March 2011 decided tha the Public Utilities Commission did not follow the tariff methodology. 3) The Supreme Court sent the case for a new hearing in the Regional Administrative Court. 4) The Regional Administrative Court will be on the 4th September. Latvian National Association for Consumer Protection
  7. 7. Challenges to the electricity sector of the Baltic States (case of EE) 1) Rise of the Electricity tariffs (30-55 %) in 2013, in Estonia. 2) Estonian Competition Authority forbid the asking of penal fine from electrictricity companies. 3) Energy company Eesti Energia lost by opening of the electricity market in 1st January 2013 their monopol statement. Their market share is deminishing continously Consumer Advice and Information Centre, Estonia, strategic partner to our Ministry
  8. 8. Challenges to the electricity sector of the Baltic States (case of LT) 1) Monopolisation trough further centralisation of overall State energy sector, seeking to accumulate finances and improve manageability of centralised “Strategic” energy projects (Visaginas nuclear power station, electricity network junctions with Sweden, Poland and Finland, Liquid Gas Terminal, etc.). 2) Energy sector enterprises declare Liberalisation of Electricity market.
  9. 9. Challenges to the electricity sector of the Baltic States (case of LT) In reality, only partial electricity market liberalisation was introduced from 1 January 2013: • Electricity market relations introduced only in supply stage – consumer can choose a supplier. • Consumer can’t to choose energy producer and transmission/distribution service providers. • Government is free to add to energy price additional costs (VIAP – Public Interests reflecting services; accumulation fees for “Strategic projects”, etc.) 3)
  10. 10. Challenges to the electricity sector of the Baltic States 1) The Third Energy Package aims to ensure that European citizens benefit from a truly competitive energy market. 2) The package contains also a provision obliging Member States to set up an independent out-of court dispute resolution scheme for energy complaints.
  11. 11. Challenges to the electricity sector of the Baltic States Due to the “Working Group Report on ADR in the Energy Sector”, 2011: - In Lithuania, the responsibility for ADR is shared between the consumer protection authority, the regulator and the State Energy Inspectorate. -In Latvia, the responsibility is shared between the regulator and the consumer protection authority. - In Estonia, consumer protection authorities or complaint boards under consumer protection authorities have the main responsibility for dispute resolution.
  12. 12. Thank You!

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