The natural gas and electricity market in Lithuania
Energy market undergoing changes
The Lithuanian energy market is developing, new service providers appear in the market every year, new alternatives of more environmentally friendly energy appear, price changes take place, new power generation options appear.
Every year the development of new natural gas connection systems takes place, and the existing ones are improved. Alternative electricity generation options become more popular and consumers – more environmentally conscious.
In this article, we have summarized several important facts about the history of the Lithuanian natural gas and electricity market and how the market looks today.
Opening of the natural gas market
In 20th March 2007 in order to implement the provisions of the European Union Natural Gas Directive, Lithuanian Parliament adopted the Law on Natural Gas. The law stipulates that from 1st July 2007 each consumer has the right to choose the gas company that will supply gas to him.
Until 2014 Lithuania had no gas supply alternatives – gas was supplied to the country through the only pipeline from Belarus, and gas supply capacity from the Latvian Inčukalns gas storage facility is insufficient in the event of a supply disruption through Belarus. After the implementation of the liquefied natural gas (LNG) terminal project in Lithuania, it became possible to have an alternative gas source and create conditions for the emergence of a gas market. The main function of the LNG terminal is to receive and store LNG, re-gasify it and supply it to the main network.
De facto Lithuanian market became fully open from 2019 after Parliament abolished the obligation for regulated companies to buy gas from the former monopoly „Lietuvos energija“.
This ensures absolutely free competition and allows the consumer to choose the most suitable service provider. Both the State and households, as well as companies, benefited from the opening of the natural gas market in Lithuania. The country strongly promoted domestic business, improved the quality of the natural gas trading service and equalized the price of natural gas in the Baltic region.
At present, natural gas services in Lithuania are used by approximately 600,000 customers, most of them use it for household stoves, but natural gas has many other uses.
A natural gas contract can be concluded by choosing a fixed price for a natural gas service or a price that depends on a price formula consisting of a fixed trader’s mark-up and the Gaspool exchange price. New gas interconnections have already connected Finland with Estonia and will connect Lithuania with Poland. As a result a new regional gas market has emerged and new companies have started to provide gas.
Elenger entered the Lithuanian natural gas market in 2020, providing advantageous offers for business companies. You can find more information about Elenger’s natural gas solutions here.
Electricity market development
Back in 2010, the local electricity market was opened to companies with high electricity consumption in accordance with the Electricity Market Law, in 2011 it was opened to companies with medium electricity consumption, and in January 2013, the electricity market in Lithuania was opened to all companies.
The electricity market will be opened for households from January 2021. All these changes and innovations have created a wider electricity supply in Lithuania, and also strengthened the European Union’s single electricity market.
Elenger provides electricity to both households and businesses. At the request of each customer, a special offer is created, the best solution for the customer’s wishes and needs is found.
Renewable electricity gaining ground
Thinking of a greener future, Elenger also provides the opportunity to purchase electricity generated from renewable energy sources only. When purchasing electricity from Elenger, you can choose one of two price options – a fixed price or a price that depends on the exchange price. When choosing the exchange price, the bill amount consists of a fixed trader’s mark-up and the Nord Pool Spot LT exchange price. However, the fixed price remains unchanged throughout the contract. You can find more information about Elenger’s electricity offer and solutions here.
Our mission is to continue to develop our services and the quality of services, thus developing the natural gas and electricity market of Lithuania and of the entire European Union. We continue to look for new solutions for every modern need, new alternative ways of power generation, ways to help companies grow and become more energy efficient. If it is also important for you to receive high-quality energy at attractive price – choose the service you need and receive a suitable offer.