There is probably only one word to say about the third liberalization stage until the legal base is improved, until enough time has passed to make sure that the process is working properly. The households consume the smallest amount of energy in the third phase. He told the Ziniu Radijas news radio on Tuesday that prices could be set at record highs.
The ongoing liberalization process is inefficient as there are too few independent suppliers on the market, some of which are linked to state-owned enterprises, and there is a risk of oligopoly, which doesn't ensure proper competition and the best price for consumers.
The number of reliable and independent suppliers is sufficient to ensure that the liberalization will be effective. Half of the suppliers are state-owned companies, and there are only six potential suppliers, including Perlas Energija, in total. The presidential office believes that the liberalization process could lead to an oligopoly, from a monopoly, which is not the goal Augustinavicius pointed out.
The presidential adviser believes that the attempt to liberalize the electricity market has so far been unsuccessful.
On Monday, Energy Minister Dainius Kreivys said that the regulation of independent electricity suppliers would be tightened shortly as amendments would be submitted to the government to increase the capital requirement for companies and set high competence standards within the energy sector.
One of the independent suppliers, Perlas Energija, announced last Friday that it was moving customers on fixed-price plans to a plan linked to the energy exchange.
Some 1.168 million consumers the first and second group consuming more than 1000 kWh of electricity per year in Lithuania have signed contracts with independent suppliers. Those consuming less will have until mid-December to choose a supplier.