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State Control Commission

The reform was carried out in four stages: * corporatization * translate to a commercial basis; * Restructuring, "the privatization of power plants and distribution networks." Now ending its fourth stage of reform. The legislation, which served as the basis for reform, was developed and adopted 2000-2002. These are the laws: "On the restructuring of JSC" Lietuvos Energia (2000) and 'On the Electric Power' (2002). Happy birthday wholesale electricity market in Lithuania is officially on Jan. 1, 2002 he submitted to manufacturers and suppliers, joint-stock companies and other entities that have received licenses to sell electricity to final consumers.

Originally sold in a pool: jsc "Lietuvos Energia bought up electricity from producers and sell to suppliers. Network operators can set prices only once a year. Electricity suppliers were divided into independent and public. First have the right to supply electricity to eligible customers on an unregulated price. Second are the owners of distribution networks and are responsible for delivering electricity to fixed prices. Regulation deals with the State Control Commission for Prices and Energy. The maximum level of prices for public providers shall be determined every three years.

Electricity consumers also divided into free and fixed. Fixed consumers have to buy only from public suppliers to set prices by the State Commission. The status of free consumer still needs to be earned. Only 12 most large industrial companies in Lithuania have become free consumers in 2002, even 130 'received the Freedom' in 2003 after being used up at least 9 GWh of electricity. In 2004, the right to choose the supplier and the prices were all who during the previous year had spent no less than 3 GWh of electricity. On 07/01/2004, at compliance with eu requirements, the status of free get all consumers except domestic. Due to changes in the law 'On power ', from 2007 onwards will be free to all consumers. Market involves first selecting the most advantageous to the consumer range of services and prices. Wholesale trade is conducted directly between the producer and supplier. Direct bilateral agreements, through the centralized procurement of electricity since 2003 in Lithuania for sale up to 70% of all electricity. Aug. 1% – public consumption and 12% – the auction sale of electricity in a strictly certain hours. Determining the price of 1 kWh, and its supply deals with the market operator, which performs the function of 'Lietuvos energy', which includes the sales department of a network operator. Balance of trade in wholesale sales performed once a month with a delay of no more than 8 days. Prices are determined depending on the cost. Consumer who is connected to a high-voltage network receives electricity at lower prices than that which is connected to low-voltage network, but in conformance with the rules of safe operation of electrical consumers. Transmission cost of 1 kWh for high voltage network 110 330 kV is 0.75 cents, on the reservation – 0.71 cents, on the network transfer 10 kV – 1,56 cents and network 0,4 kV – 2.83 cents. Household consumer buys at a price of 11 cents, of which 1 / 3 – the cost of electricity and 2 / 3 – the cost of transporting it. Energy produced by nuclear power, takes 1 / 4 market price for 1 kWh.