This document discusses challenges facing the electricity sectors of the Baltic states. It notes that Estonia, Latvia, and Lithuania are in the process of liberalizing their electricity markets between 2013 and 2014, which is expected to lead to price increases for households of 30-55% in Estonia and 30% in Latvia. In Lithuania, price increases are ongoing due to a dominant producers' market and the centralization of the state energy sector. The document also discusses issues around the development of renewable electricity sources and further centralization of the energy sector in Lithuania. It provides country-specific details on electricity market liberalization and resulting price increases and disputes in Estonia, Latvia, and Lithuania.

1. Challenges to the Electricity sector of the
Baltic States
June, 2013

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. 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. 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. Energy consumption in the Baltic Sea
countries 2010
Renewable energy
Natural gas
Fuel products
Nuclear energy
Solid fuel

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. 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. 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. 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. 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. 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. Thank You!