REPUBLIC OF LITHUANIA
Law on
ELECTRICITY
20 July 2000 No VIII-1881
Vilnius
(As last amended on 21 June 2012 No XI-2095)
SECTION ONE
GENERAL PROVISIONS
Article 1. Purpose of the Law
1. This Law shall establish the legislative framework for the organisation of the Lithuanian electricity sector governance, regulation, supervision, control and operations in the electricity sector, and also regulate relationship between the institutions performing regulation, supervision and control of electricity producers, service providers, consumers and the national electricity sector in the areas of electricity generation, transmission, distribution, supply and ensuring of consumers' rights and legitimate interests.
2. The provisions of this Law have been harmonised with the legislative acts of the European Union listed in the Annex to this Law.
Article 2. Definitions
1. Balancing electricity shall mean electricity which is consumed/not consumed or generated/not generated in derogation from the quantities of electricity planned in the balancing energy suppliers’ schedules drawn up adhering to the procedure and conditions of the Electricity Trading Rules approved by the Ministry of Energy of the Republic of Lithuania.
2. Balancing electricity provider shall mean a person trading in the balancing electricity with the transmission system operator.
3. Household electricity consumer (hereinafter: ‘household consumer’) shall mean any natural person purchasing electricity for personal, family or household consumption, excluding commercial or professional activities.
4. Wholesale of electricity shall mean electricity trading based on bilateral agreements, with the exception of contracts with electricity consumers, and/or electricity trading on the exchange.
5. Electricity undertaking shall mean any person engaged in at least one of the following operations: electricity generation, transmission, distribution and supply and is responsible for the commercial, technical and/or maintenance obligations related to those types of activities.
6. Electricity sector shall mean a branch of the national energy sector related to electricity generation, transmission, distribution, supply, consumption, and trading.
7. Electricity system shall mean the totality of electric equipment intended for electricity generation, transmission and distribution and functioning in a synchronous mode.
8. Electricity shall mean active power of electricity, which according to legal acts is traded between electricity market participants and is intended for final consumption presenting it as a consumer product.
9. Electricity exchange shall mean the wholesale electricity system, organized by the electricity exchange operator in accordance with the procedure and conditions set out in Electricity Trading Rules.
10. Electricity exchange participant shall mean an electricity market participant registered in the database of electricity exchange operator, engaged in the wholesale trading of electricity by providing offers to buy and/or sell electricity at the electricity exchange.
11. Electricity exchange operator shall mean a person administering the electricity exchange and organizing electricity wholesale trading at the electricity exchange and acting in accordance with the procedure and conditions set out in this Law.
12. Electricity generator (hereinafter: ‘generator’) shall mean a person generating electricity and having a permit to engage in these operations.
13. Guaranteed electricity supply (hereinafter: ‘guaranteed supply’) shall mean electricity supply in order to ensure electricity supply to consumers who have not chosen the independent supplier according to the established procedure or whose chosen independent supplier fails to fulfil its obligations.
14. Electricity market shall mean the totality of relationships between persons who are engaged in electricity generation, transmission, distribution and supply operations; this totality shall encompass wholesale and retail trading in electricity and the provision of system services and shall be based on the principles of legality and equality, applying a regulatory principle of third-party participation for electricity transmission.
15. Electricity market participant (hereinafter: ‘market participant’) shall mean a person engaged in wholesale trading in electricity in the manner prescribed by the Electricity Trading Rules. Market participants shall mean a transmission system operator, distribution grids’ operators, electricity generators, suppliers, who according to legal acts have entered into balancing electricity sales contracts with balancing energy suppliers, also balancing energy suppliers and persons authorised to export electricity to non-member states or import electricity from non-member states.
16. Electricity costs shall mean total electricity costs incurred when providing an electricity transfer service through transmission and distribution grids and calculated as the difference between the total amount of electricity received by the transmission system operator or the distribution grid operator and the amount of electricity consumed by consumers or transmitted to other operators.
17. Electricity grids shall mean electricity transmission and/or distribution grids, i.e. the totality of synchronised electric equipment intended for transmission and/or distribution of electricity.
18. Horizontally integrated undertaking shall mean an undertaking or a group of undertakings engaged in at least one of the following operations: electricity generation, transmission, distribution or supply operations and any other type of operation not related to electricity.
19. Long-term planning shall mean the planning of the capacity development of electricity generation, transmission and distribution and ensuring of reliable supply to consumers as well as the planning of related long term investments for a period of at least three years in order to satisfy the electricity needs in the system.
21. Undertaking control shall mean rights, agreements or other means which, either separately or jointly, taking into account the relevant facts and/or legal considerations, provide a possibility to exercise a decisive influence on an undertaking, first of all, by exercising:
23. Joint system shall mean several electricity transmission and distribution systems linked together by one or more interconnectors.
24. Allowable capacity shall mean the maximum capacity that the consumer is entitled to use from/in/of the grid at any time and that is indicated in the electrical equipment connection contract concluded between the transmission system operator or the distribution grids’ operator and the consumer.
25. Local electricity grid shall mean low and/or medium-voltage power lines, transformer substations and/or other electrical equipment used for transmitting electricity to the objects of connected consumers and/or other persons, which are legitimately operated by the generator or the consumer and located on the territory and/or premises of the generator or the consumer.
26. National balancing function shall mean ensuring the balance between electricity generation and consumption according to the criteria of system safety and reliability as well as qualitative criteria of electricity at electricity system level.
27. Non-financial corporations shall mean private and state entities the main activity of which is not financial intermediation, but the production of goods and provision of non-financial services seeking to earn profit.
28. Independent supplier shall mean a person supplying electricity to consumers and having the right to engage in the independent electricity supply operation.
29. Auxiliary instrument for protection against electricity price volatility (hereinafter: ‘auxiliary instrument’) shall mean a measure to ensure the protection of market participants from potential electricity price fluctuations on the electricity exchange.
30. Distributed production shall mean the electricity production with electricity generation equipment connected to the distribution grids.
31. Transmission shall mean the transport of electricity through the transmission grid, system services included, except the supply.
32. Transmission system operator shall mean a person managing transmission grid according to the right of ownership as referred to in Paragraph 2 of Article 53 or on any other legitimate grounds, and, according to the procedure provided for in legal acts, ensuring the transmission grid operation, development and maintenance, performing national balancing, dispatching, and provision of system services, and holding the appropriate operating license.
33. Transportation service shall mean electricity transmission and/or distribution up to the electricity grid ownership threshold fixed in the contract.
34. Regulatory energy shall mean electricity purchased and/or sold under the instructions of the dispatch centre of the transmission system operator that is necessary for the performance of the national balancing function.
35. Regulatory period shall mean a time period for which a price cap for electricity transmission, distribution and public supply services is imposed.
36. Regulated third party access shall mean the process whereby generators, suppliers and consumers use the transmission or distribution grids to transport electricity based on the conditions published according to the procedure provided for in legal acts.
37. Reserve capacity shall mean electricity generation capacities to be used for maintaining the set frequency, ensuring the electricity system balance and generating the electricity in the foreseen cases of generation decrease or consumption increase.
38. System services shall mean those transmission operations that ensure a secure and reliable operation of energy system, prevention and liquidation of system failures, the required capacity reserve and electricity transmission capability through transmission grids in compliance with the requirements set for electricity supply quality and reliability.
39. Distribution shall mean electricity transportation through the distribution grids, except supply.
40. Distribution grids’ operator shall mean the person managing transmission grid located on the territory indicated in his operational licence by the right of ownership or on any other legitimate grounds, ensuring the distribution grid operation, development and maintenance according to the procedure provided for in the legislative acts, responsible for ensuring system’s long-term ability to satisfy the grounded needs of electricity distribution, as well as holding the appropriate operating license.
41. Supplier shall mean a public or independent supplier holding the appropriate operational license or permit to engage in these activities.
43. Direct line shall mean an electricity line connecting the electricity production and consumption sites that are not connected to the transmission or distribution grids, or an electricity line linking the electricity generator and the objects of its subdivisions and subsidiaries or consumers whose electrical equipment is connected to the local electricity grids of the producer.
44. Grids’ user shall mean any person whose equipment is connected to the transmission or distribution grids and who uses or can use the electricity transfer service.
45. Grids’ operator shall mean the operator of the transmission system and/or the operator of the distribution grids.
46. Maintenance of the grids shall mean actions ensuring the stability, security, reliability and quality of the electricity grids’ equipment operation.
47. Third parties shall mean electricity generators, suppliers and consumers which are entitled according to the procedure established in this Law to use electricity transmission and/or distribution grids for electricity transmission according to the procedure established in legal acts.
48. Consumer shall mean a person whose equipment is connected to the transmission or distribution grids or a direct line and who purchases electricity for consumption.
49. Object of a consumer shall mean the object managed by the consumer by the right of ownership or on other legitimate grounds (equipment, structure or other) that uses electricity.
50. Vertically integrated undertaking shall mean an undertaking or a group of undertakings engaged in at least one electricity transmission or distribution operation and at least electricity supply or generation operation, and where the same person or persons are entitled to control, directly or indirectly, companies engaged in electricity transmission or distribution operation and at least one supply or generation operation or to be controlled by these companies.
51. Public interest in the electricity sector shall mean operation or omission in the electricity sector, directly or indirectly related to the national energy and/or public security, electricity system functioning security and reliability, reduction of a negative impact of the electricity sector on the environment, diversification of energy resources and other aims of sustainable development of the electricity sector provided for in this Law.
52. Services implementing public interest shall mean services provided by companies, where the list of services, service providers and the procedure for providing services are approved by the Government of the Republic of Lithuania or its authorised institution in accordance with the general requirements set in Article 74 of this Law and the public interest in the electricity sector.
53. Public supplier shall mean the person responsible for supplying electricity to consumers indicated in Article 43 of the Law on the territory specified in his operational licence.
Article 3. Main Aims of this Law
Main aims of this Law shall be:
1) to ensure safe and reliable operation of electricity system, electricity generation, transmission, distribution and supply;
2) to identify rights and responsibilities of the electricity sector participants and establish the legal framework of their interrelationship;
3) to create the legal environment for operation of a competitive electricity market, establishment of the principles of fair competition among market participants;
4) to ensure independence of electricity transmission and distribution operations and their effective unbundling from commercial interests of other electricity sector operations, to create a legal framework to reorganize vertically integrated undertakings;
5) to establish a high level protection of consumer rights and legitimate interests, in particular by ensuring electricity availability and adequacy, protection of socially vulnerable consumers and their groups, implementation of the right to information and effective implementation of remedies;
6) to promote the internal electricity market development, market integration, modernize technical market implementing measures, and ensure a clear and transparent pricing;
7) to ensure and promote the efficiency of electricity generation, transmission, distribution and consumption;
9) to establish legal framework for services implementing public interest and reasonable, clear and transparent requirements and obligations in the electricity sector;
Article 4. General principles for electricity sector operation regulation
Public management, regulation, supervision and control of the electricity sector business are based on the following general principles:
3) reduction of the adverse impact of electricity sector on environment and sustainable development of the electricity sector by implementing public environmental, economic and social policy objectives;
5) electricity availability and adequacy of cost to consumers for an economically reasonable price and protection of the rights and legitimate interests of socially vulnerable consumers' groups;
6) promotion of the development of the use of effective smart grid technologies and renewable resources in the electricity sector,
Article 5. Operation management institutions of electricity sector
1. Electricity policy directions shall be set by the Seimas of the Republic of Lithuania (hereinafter: ‘the Seimas’) by adopting the National Energy Independence Strategy and passing the laws.
2. Electricity business management, regulation, supervision and control in the Republic of Lithuania within their remit shall be performed by:
1) the Government of the Republic of Lithuania (hereinafter: ‘the Government’) or its authorised institution;
3) the State Energy Inspectorate under the Ministry of Energy (hereinafter: ‘the State Energy Inspectorate’);
Article 6. Functions of the Government or its authorised institution in the electricity sector
1. The Government shall:
2) cooperate with electricity institutions abroad, within their remit represent the Republic of Lithuania in international organizations;
5) approve the list of services implementing public interest and determine their provision procedure;
8) determine obligations for electricity undertakings to provide services implementing public interest in the electricity sector, and, when it is necessary for fulfilling the set obligations, allocate financial compensations or establish other forms of compensation and exclusive rights without discrimination and in a transparent way;
2. The Government or its authorised institution shall:
2) determine the list of socially vulnerable electricity consumers and their groups and/or additional guarantees for such consumers or their groups relating to the supply of electricity;
Article 7. Ministry of Energy functions in the electricity sector
The Ministry of Energy shall:
1) formulate national policy in the electricity sector, organize, coordinate, monitor and control how it is implemented;
2) cooperate with electricity institutions abroad, within their remit represent the Republic of Lithuania in international organizations;
3) prepare and submit to the Government for approval the list of services implementing public interest and the procedure description of their provision;
5) in coordination with the Authority, establish standard conditions for connection of electric equipment of new household consumers to the power grid;
6) in coordination with the Authority, approve a description of standard contractual terms and conditions between household consumers and grid operators for electricity transport service;
7) in coordination with the Authority, establish standard terms and conditions of electricity sales contracts between household consumers and suppliers;
8) establish terms and conditions of electric equipment connection to the electricity grids by the producers and consumers;
9) establish a time limit of connection of consumer equipment to electricity grids and recovery of electricity supply;
10) approve Regulations for installation, operation, use and safety of electricity facilities establishing, among other, technical design, operation, and safety requirements for electricity generation, transmission and distribution;
14) establish information provision terms and conditions for persons engaged in operations in the electricity sector;
Article 8. Functions of the State Energy Inspectorate in the electricity sector
Functions, tasks, rights and duties of the State Energy Inspectorate in the electricity sector shall be provided for by the Law on Energy, this Law and other laws and regulations of the State Energy Inspectorate.
Article 9. Functions of the National Control Commission for Prices and Energy in the electricity sector
1. Functions, tasks, rights and duties of the Commission in the electricity sector shall be provided for by the Law on Energy, this Law and other laws and regulations of the National Control Commission for Prices and Energy.
2. The Commission shall within its remit perform in the Republic of Lithuania the functions of state regulation of operations in the electricity sector, including ensuring of supervision and control of performance of regulatory operations in the electricity sector and proper implementation of the rights and duties of electricity undertakings and consumers.
3. The Commission shall:
1) in cases provided for by this Law grant licenses and permits to engage in operations in the electricity sector;
2) set technological, financial and managerial capacities of electricity undertakings and their assessment procedures;
5) approve methodologies for calculation of price caps of electricity transmission, distribution and public supply services, establish price caps of state-regulated services and electricity;
6) upon recommendation of service providers announce prices of electricity transmission, distribution and public supply services;
7) approve a price calculation methodology of services implementing public interests in the electricity sector, set prices of services implementing public interest;
9) set a procedure of differentiation of prices of electricity transmission, distribution and public supply services;
10) approve charges for connecting electrical equipment of consumers and manufacturers to electricity grids in accordance with the general pricing requirements established in this Law;
11) set the calculation methodology of the contribution for the entrance to the electricity market of the Republic of Lithuania, and the contribution for the entrance to the electricity market of the Republic of Lithuania. In cases provided for by the Commission the contribution for the entrance to the electricity market to the Republic of Lithuania may be applied only to persons importing electricity from third countries;
13) set the procedure and conditions for the submission of documents, data and information by the transmission system operator;
4. The Commission must ensure competition between electricity market participants, individual market participants, consumer non-discrimination and quality of services for consumers. Aiming to achieve this the Commission shall control:
1) compliance with the Rules for the Management of Interconnectors, Allocation and Regulation of their Capacity;
3) time taken by grids’ operators to connect consumers’ equipment to the grids and restore electricity supply;
4) that grids’ operators announce on their websites information on the interconnectors, use of the system and capacity allocation to interested parties;
5) effective unbundling of operations in the electricity sector, ensuring independence of electricity transmission and distribution operations from the interests of generation and supply operations in order to avoid cross-subsidization of these operations;
6) that the conditions and rates for connecting new consumers are objective, transparent and non-discriminatory, taking into account the costs and benefit of the development of renewable energy sources technologies, distributed generation and combined heat and electricity generation during a single technological process;
7) compliance with the requirements of transparency, non-discrimination and competition in the electricity sector set in this Law and other legal acts;
8) process of ensuring efficient operation of the electricity market and prevention from abusing a dominant market position by persons or taking other actions exerting a negative impact on effective competition between the electricity market participants;
10) compliance with the conditions and requirements for the licensed operation or operations in the electricity sector, observance and protection of consumer rights and legitimate interests, including the reliability of the information provided to consumers;
5. The Commission shall publish the results of control operations in its annual report under the provisions of Paragraph 4 of this Article.
6. In carrying out its functions in the area of state regulation, supervision and control of the electricity sector the Commission shall act independently of other state institutions, agencies, organizations, also commercial interests of the operations in the electricity sector.
7. The Commission shall, according to the procedure and the conditions provided for in the laws, impose effective, proportionate and dissuasive sanctions to electricity undertakings for violations of state regulated electricity operations in the electricity sector. Commission’s fines for violations of state regulated electricity operations and the procedure of imposing thereof shall be laid down in the Law on Energy.
Article 10. Functions of the State Consumer Rights Protection Authority in the Electricity Sector
The Authority shall:
1) conduct national supervision and control of the protection of the rights and legitimate interests of electricity household consumers;
2) examine household consumers’ complaints and disputes relating to application of unfair provisions of electricity sale contracts and of the contracts regarding connecting of new household consumers’ equipment;
3) examine household consumers’ complaints and disputes regarding unfair commercial operations of electricity suppliers;
Article 11. Public Consultation
1. When adopting legal acts on the basis of this Law or its implementing legislation, with the exception of individual laws and legislation that resolve a dispute or a complaint, the Commission shall, in accordance with its terms and conditions, publish on its website drafts of these legal acts and set for persons concerned a reasonable time limit for comments.
2. According to its terms and conditions, the Commission shall publish on its website draft Commission decisions on matters relating to all rights of the electricity sector participants, and provide electricity sector participants with a reasonable time limit for comments.
3. The Commission shall set the Rules for Public Consultation defining the cases, terms and conditions of consultation. Information related to any on-going consultations shall be placed on the website of the Commission. The Commission shall publish the results of the consultations, except for information comprising a state, official or commercial secret.
4. When performing its functions within the framework of this Law and other legal acts in accordance with the terms and conditions of the Rules for Public Consultation indicated in Paragraph 3 of this Article, the Commission shall consult grids’ operators without prejudice to their independence and without influencing their specific remit; it shall also consult other competent institutions, authorities and/or grids’ users.
Article 12. Structure of the Electricity Sector
The electricity sector shall comprise electricity consumers, generators, independent and public suppliers, transmission and persons performing guaranteed supply function, operators of transmission systems and distribution grids, and an electricity exchange operator.
Article 13. Interoperability and Integrity of the Electricity Sector
1. In order to ensure the integrity of the electricity sector on the basis of objective and non-discriminatory principles the Regulations for installation, operation, use and safety of electricity facilities approved by the Ministry of Energy shall among other establish requirements for technical design, operation and safety of electricity generation, transmission and distribution equipment.
2. Electricity generation equipment, transmission and distribution grids, interconnectors and direct lines must be in conformity with the technical design and operational requirements in order to ensure the integrity of the system managed by the transmission system and distribution system operators.
Article 14. Use of Renewable Energy Sources for Electricity Generation
1. The State shall promote the use of renewable energy sources to generate electricity and consumption of electricity generated from renewable energy resources.
2. The use of renewable energy sources for electricity generation may be promoted in accordance with the terms, conditions and scope established by this Law and the Republic of Lithuania Law on Energy from Renewable Sources (hereinafter: ‘the Law on Energy from Renewable Sources’). The Government shall set terms and conditions for the application of promotion instruments for the use of renewable energy sources in accordance with the requirements of this Law and the Law on Energy from Renewable Sources. Promotion instruments for the use of renewable energy sources must be applied in a non-discriminatory and transparent manner, taking into account the criteria of economic justification, lowest cost and effect on the price of electricity to end-users.
Article 15. Licensed operations in the electricity sector, licensing conditions and general principles
1. The following operations shall be subject to licensing in the electricity sector:
2. The Rules for Issuing Operation Licences in the Electricity Sector (hereinafter: ‘the Rules for Issuing Licenses’) shall be approved by the Government.
3. Persons who wish to engage in the licensed electricity operations shall be issued the license in accordance with the principles of operational security, reliability, and non-discrimination. Licensing may not be used as an instrument to limit the number of market participants. Licences are issued for an indefinite period, except for the circumstances specified in Paragraph 9 of this Article.
4. Licenses for electricity transmission, distribution and public supply operations shall indicate the area in which persons have exclusive rights and obligations to perform the indicated operation.
5. Licenses shall be issued to persons who have adequate technical, financial and managerial capacities to properly comply with the licensed operation conditions. Persons’ technological, financial and managerial capacities and their evaluation procedures shall be established by the Commission taking into account the following minimum criteria:
1) grids’ operators must manage electricity transmission or distribution grids by their right of ownership as specified in this Law or on any other legitimate grounds;
2) financial capacities of the applicant for a license shall be assessed according to the data of his profit and loss statements for the last two years, for the assessment of which the indicators of financial capacities set by the Commission shall be applied;
3) the applicant for a license must have staff to perform licensed operations and prepare reports, manage separate accounting of licensed operations, inform and provide consults to consumers and examine complaints regarding the conditions of licensed operations;
6. Licenses for electricity transmission, distribution and public supply operations shall be issued to a legal person established in the Republic of Lithuania or a unit of a legal person or any other organization of other Member States, established in the Republic of Lithuania.
7. Persons seeking to engage in electricity transmission and distribution operations must be issued according to the procedure established in legal acts a certificate or another document granting the right to operate electricity equipment or conclude a contract regarding operation of such equipment with another person having the appropriate certificate or other document.
8. The license for the electricity transmission operation shall be issued to a person who meets the requirements indicated in Paragraphs 5, 6 and 7 of this Article and who manages transmission grids on the territory of the Republic of Lithuania by the right of ownership specified in Paragraph 2 of Article 53 or on any other legitimate basis.
9. In order to ensure the electricity transmission operation continuity, prior to the Commission's final decision on the appointment of the transmission system operator, the Commission shall, for a maximum period of 12 months, issue in accordance with the procedure laid down in Article 25 of this Law a fixed-term electricity transmission operation license to a person who fulfils the requirements of Paragraph 8 of this Article. When the Commission appoints a transmission system operator, he shall be issued a permanent electricity transmission operational license. After the issue of a permanent electricity transmission operation license, a fixed-term operation license provided for in this Paragraph shall be considered invalid.
10. An electricity distribution operation license shall be issued to a person who fulfils the requirements set in Paragraphs 5, 6 and 7 and who, by the right of ownership or on other legitimate grounds, manages distribution grids directly connected to the transmission grids.
11. Persons who are engaged in one of the licensed operations provided for in Paragraph 1 of this Article shall not eligible to authorise other persons to engage in the operation specified in the license and must adhere to the following general operation conditions:
1) in accordance with the procedure set in the licensing regulations submit to the competent state institutions and agencies the information necessary to perform their duties provided for by laws and other legal acts;
2) in accordance with the procedure prescribed by legal acts provide services implementing the public interest;
3) ensure fair and non-discriminatory conditions for all users, grids’ operators and other market participants;
4) inform and provide consultations to consumers and grids’ users according to the procedure laid down in legal acts;
12. The holder of a license for electricity transmission and distribution operations, apart from the conditions set in Paragraph 11 of this Article, must comply with the licensed operation conditions specified in Articles 31 and 39 of this Law:
1) coordinate with the license issuing institution the plans of assets supervision and operation and of investments into managed assets;
2) ensure the independence of transmission and distribution operations from other operations in the electricity sector in accordance with the terms and procedure specified in this Law, perform an independent audit specified in Paragraph 3 of Article 56 and publish data on electricity transportation costs on the license holder’s website.
13. The holder of a license for electricity public transmission operations, apart from the conditions set in Paragraph 11 of this Article, must also comply with the licensed operation conditions specified in Articles 43 of this Law and:
2) ensure guarantee supply of electricity according to the terms and procedure specified in Article 44 of this Law;
Article 16. Authorised operations in the electricity sector, conditions and general principles of authorised operations
1. Authorisations shall be issued for the following operations in the electricity sector:
2. Rules for Issuing Operation Authorisations in the Electricity Sector shall be approved by an institution authorised by the Government in accordance with the requirements established in this Law and the Law on Energy from Renewable sources.
3. Authorisations referred to in Points 1-5 of Paragraph 1 of this Article shall be issued, suspended, suspension shall be lifted, authorisations shall be revoked, changed, modified, authorisation duplicates shall be issued, and authorised operations shall be regulated by the Ministry of Energy, and authorisations referred to in Point 6 of Part 1 of this Article shall be issued, suspended, suspension shall be lifted, authorisations shall be revoked, changed, modified, authorisation duplicates shall be issued and authorised operations shall be regulated by the Commission.
4. Authorisations for operations in the electricity sector shall be issued for an indefinite period of time, with the exception of authorisations for the expansion of electricity generation capacities and construction of a direct line. Validity terms for the authorisations for the development of electricity generation capacities and construction of a direct line shall be set by the Ministry of Energy in accordance with the following requirements:
1) a one-time authorisation for the development of electricity generation capacities, with the exception of the cases referred to in Point 2 of this Paragraph, and for the construction of a direct line shall be issued for a period of 36 months;
2) a one-time authorisation for the development of capacities of electricity generation from renewable energy sources shall not exceed 24 months;
3) an issued authorisation may be extended not more than once and for a period no longer than 12 months in cases referred to in Point 1 of this Paragraph or for a period of 6 months in cases referred to in Point 2 of this Paragraph provided that design work is completed and not less than 50 per cent of the project work is finished. The procedure and conditions of application and assessment of these requirements shall be laid down in the Rules for Issuing Operation Authorisations in the Electricity Sector. In cases referred to in Point 2 of this Paragraph a licence can be extended if the applicant provides additional security for his obligations, according to the terms and conditions provided for in the Law on Energy from Renewable Resources;
4) an issued authorisation shall be renewed for an additional period of not more than 6 months, provided that the applicant submits grounded evidence that the work which was planned to be carried out has been delayed due to the actions of the State, third parties or in case of force majeure, as well as in other events which the applicant cannot control or have power over;
5) in the case where the characteristics of the technology of developed electricity generation objectively determine longer periods of construction and installation, upon the receipt of appropriate documentation from the applicant the Ministry of Energy may, in accordance with the Rules for Issuing Operation Licenses in the Electricity Sector, issue licences to expand capacities of electricity generation for a period longer than provided for in Point 1 of this Paragraph.
5. Authorisations to generate electricity, develop electricity generation capacities and build a direct line shall be issued to individuals who are entitled to live in the Republic of Lithuania or to legal persons established in the Republic of Lithuania, or to branches of legal persons or other organizations from other Member States, established in the Republic of Lithuania.
6. An authorisation to generate electricity shall be issued to persons who comply with the requirement provided for in Paragraph 5 of this Article and who:
1) submitted documentation showing that the construction of a new electricity object or a rebuilt electricity object has been completed according to the terms and conditions provided for in the Republic of Lithuania Law on Construction (hereinafter: ‘the Law on Construction’);
2) are able to store or maintain fuel reserves if the technological capacity of electricity generation exceeds the aggregate (electric and thermal) 5 MW power, unless the electricity is produced from renewable energy resources and, due to the technical characteristics of the generation sources, it is not possible to store and maintain such electricity resources.
7. In case of distributed generation, an authorisation to generate electricity shall be issued by the Government or its authorised institution according to the simplified procedure, taking into account a limited scope of the distributed production and a potential impact on the reliability of electricity system.
8. Authorisations to individuals who plan to generate electricity only for their own needs or domestic purposes, when the currently installed power of their electricity generation capacity does not exceed 10 kW, shall be issued according to the simplified procedure provided for in the Rules for Issuing Operation Authorisations in the Electricity Sector approved by the Government or its authorised institution.
9. An authorisation to expand electricity generation capacities shall be issued to persons who comply with the requirement set in Paragraph 5 of this Article and the requirements set in Paragraph 2 of Article 21 and:
1) after the grids’ operator approves the possibility to connect the electrical equipment of the generator to the transmission or distribution grids or after the applicant provides documentation in support of the planned connection to the existing direct line, or submits an application to receive an authorisation to build a direct line;
2) who by the right of ownership or on other legitimate basis manage a land lot on the territory where it is planned to engage in authorised operations provided for in this Law or who have a consent of the co-owners or the owner of the building regarding the construction of a power plant and its operation, where equipment for electricity generation are planned to be installed on the building or its structural parts.
10. An authorisation to develop electricity generation capacities shall not be required where an individual plans to expand (install) electricity generation capacities the installed power of which does not exceed 10 kW and to generate electricity only for his own needs or domestic purposes. A person planning to expand (install) electricity generation capacities the installed power of which does not exceed 10 kW must inform grids’ operator according to the procedure laid down by the Government or its authorised institution.
11. An authorisation to build a direct line shall be issued to persons who comply with the requirement provided for in Paragraph 5 of this Article and the requirements set in Article 70 of this Law.
12. An authorisation to export electricity to non-member states shall be issued to persons who are according to the procedure provided for in legal acts engaged in operations of independent electricity supply or hold an authorisation to generate electricity.
13. An authorisation to import electricity from non-member states shall be issued to persons who are according to the procedure provided for in legal acts engaged in operations of independent electricity supply or persons who hold according to the procedure provided for in legal acts a licence for public supply.
14. A person who is engaged in economic and commercial activities in the Republic of Lithuania or in another Member State is entitled to engage in operations of independent supply of electricity without a prior authorisation from the Commission, but having made prior notification to the Commission about his intention to engage in operations of the independent supply of electricity in accordance with the terms and conditions specified in the Rules for Issuing Operation Authorisations in the Electricity Sector. A person who submits to the Commission a relevant notification acquires the statutory rights and responsibilities of an independent provider and may engage in operations of the independent supply of electricity. The start of operations of the independent supply of electricity shall be considered the day when the proper notification to the Commission is submitted. If a person requests so, the Commission shall issue a written confirmation that a person is engaged in operations of the independent supply of electricity.
15. The list of persons who are engaged in operations of the independent supply of electricity and their contact details shall be published on the Commission's website.
16. Persons who are engaged in the operations specified in Paragraph 1 of this Article do not have the right to authorise other persons to engage in the operations specified in the authorisation or transfer to them the right under the contract and shall comply with the following conditions of operations:
1) to submit information about regulated operations to the competent state institutions and agencies in the manner prescribed by legal acts;
3) persons importing electricity from third countries must, according to the terms and conditions provided for in legal acts, properly regulate the relations with the transmission system operator involving the market premium payment for the entrance to the electricity market of the Republic of Lithuania and/or fulfilment of any other requirements for the execution of electricity import operations;
4) persons generating electricity for their own use must enter into contracts with grids’ operators regarding electricity transportation;
5) to operate electrical equipment according to the procedure provided for in the legal acts or enter into contract of electrical equipment operation with a person holding a certificate granting the right to operate this equipment;
Article 17. Issue of licenses and authorisations for operation in the electricity sector, their suspension, cancellation of suspension, revocation, and change
1. The person applying for a license or an authorisation for the operation in the electricity sector shall, according to the procedure laid down in the Rules for Issuing Operation Licenses and Rules for Issuing Operation Authorisations in the Electricity Sector, submit an application and the documents provided for in the said Rules to the license or the authorisation issuing authority.
2. A license or an authorisation or a written reasoned refusal to issue a license or an authorisation shall be issued to the applicant no later than 30 calendar days after the receipt by the licence or the authorisation issuing authority of an application and all required and properly executed documents in accordance with the procedure provided for in the Rules for Issuing Operation Licenses and Rules for Issuing Operation Authorisations in the Electricity Sector. If there is no answer to the properly submitted application for a license or an authorisation within the time limit specified in this Paragraph, it is assumed that there is a positive decision regarding the issuance of a license or an authorisation.
3. The provision of Paragraph 2 of this Article regarding the time limit for the issuance of a license or an authorisation shall not be applied when there is a litigation with third parties regarding the conditions (territory) for licensed operation or operation regulated by authorisation and when there is an application submitted regarding the issue of operational licence for transmission, distribution or public supply of electricity in the territory where an operational licence for transmission, distribution or public supply of electricity has been issued already or it shall not be applied for other reasons justified by the public interest and the applicant is informed in accordance with the procedure provided for in the Rules for Issuing Operation Licenses and Rules for Issuing Operation Authorisations in the Electricity Sector. In this case, a license or an authorisation shall be issued or a written reasoned refusal to issue a license or an authorisation to the applicant shall be submitted no later than within 30 days after the end of the litigation proceedings or in the absence of other reasons justified by the public interest due to which a decision on a license or an authorisation issuance has been delayed.
4. Persons holding a license and/or an authorisation for respective operation in the electricity sector shall be warned of a possible license or authorisation suspension or revocation for the breach of conditions and requirements of the licensed operation of persons holding authorisations in accordance with the procedure provided for in the Rules for Issuing Operation Licenses and Rules for Issuing Operation Authorisations in the Electricity Sector. A license or an authorisation shall be suspended, suspension shall be lifted, a licence or an authorisation shall be revoked and a license or an authorisation shall be changed in accordance with procedure laid down by the Law on Electricity.
5. A person intending to terminate electricity transmission, distribution and public supply operations must not later than 6 months in advance inform the licensing authority of the aforementioned. In the case when the report identifies the person who is going, at the end of the period specified in the report, to engage in the licensed operations of electricity transmission, distribution and supply and who meets all the requirements for this operation set out in this Law and other legal acts and submits to the Commission the supporting documents proving this compliance, the period for the report about the termination of operations shall be coordinated by the mutual consent of the Commission, the person submitting the report and the person intending to engage in the licensed operations.
6. If the decision on the license suspension or revocation has impact on the safe electricity supply to consumers, it may enter into force no earlier than two months from the date of the decision. The Commission must inform the Government and the Ministry of Energy about the intention to adopt such decision.
7. In order to ensure security of electricity system, reliability of electricity supply to consumers and protection of public interests in the electricity sector, inspections of the operation of a person engaged in the licensed operation or operation regulated by authorisations in the electricity sector may be carried out and sanctions prescribed by law may be applied for violations of conditions for the licensed operation or operation regulated by the authorisation during the first year of respective operation in the electricity sector. The Commission and/or any other state or municipal institutions shall within their remit ensure continuous control and supervision of the licensed operation or operation regulated by authorisations in the electricity sector in accordance with principles of justice, good faith, reasonableness and non-discrimination of market participants.
Article 18. Long-term Planning and System Development
1. The transmission system operator, taking into account the requirements for security and reliability of supply of electricity, quality, efficiency, consumption, management and environmental protection specified in the National Energy Independence Strategy, improving the terms and conditions of access to the system shall plan the long-term development of the electricity system in coordination thereof with the Ministry of Energy and distribution system operators. Long-term electricity system development planning must be based on scientific, technological and economic assessment. Transmission system operator and distribution system operators must work together to ensure optimal development of the transmission and distribution networks.
2. The right to install or develop electricity grids in the territories indicated in the transmission and distribution licenses shall rest with the license holders.
3. In the event of absence of those willing to build new equipment of generation capacities in the manner established in Article 21 of this Law, an institution authorised by the Government shall announce a tender (auction) for building new equipment of generation capacities and/or measures for efficiency of electricity consumption and demand management and shall be responsible for the tender organisation and establishment of non-discriminating tender conditions for bidders. The tender (auction) procedure may be applied only when the basis of the authorisation procedure provided for in Article 21 of this Law, the generation capacity of equipment to be built or energy efficiency and demand management measures to be taken are insufficient to ensure security of supply.
Article 19. Monitoring of Reliability
1. The Commission shall monitor the reliability of transmission and distribution grids. The results of reliability monitoring shall be summarized in the annual reports published on the Commission's website. These reports shall contain the following information:
4) measures for satisfying electricity demand at peak times and system balancing and control measures;
Article 20. General principles for the operation of generators
1. When connecting their equipment to transmission and/or distribution grids and maintaining them generators must comply with the requirements of the Rules for the Use of Electricity Grids as well as technical conditions set by the operators of transmission and/or distribution grids.
Article 21. Issuing of authorisations for the development of generation capacities
1. The existing electricity generation capacities may be developed or new electricity generation capacities installed in a new location subject to authorisation to develop electricity generation capacities, except for the cases provided for in Paragraph 10 of Article 16 of this Law.
2. Authorisations shall be issued to persons who have submitted an application of the form set by the institution authorised by the Government and required documents, unless the licensing authority, having considered the documents submitted by the person, establishes that the operation planned by the person does not meet the following requirements:
1) electrical and related equipment will not be safe and reliable and will have a negative impact on the electricity grids, to which this equipment is connected, or allow such negative impact to occur;
2) will have a negative impact on human health, their property and living environment, or allow any such adverse effects to occur;
3. Authorisations for development of electricity generation capacities shall be issued on a non-discriminatory basis in accordance with the terms and conditions of the Rules for Issuing Operation Authorisations in the Electricity Sector. In the case when the expansion of electricity generation capacities is related to limited bandwidth and power use of the electricity grid at a particular point of the grid or part of it, authorisations to develop capacities of electricity generation shall be issued following the tender (auction) procedure in accordance with the legislative grounds and the conditions set by the institution authorised by the Government.
4. Rules for Issuing Operation Authorisations in the Electricity Sector shall set out the requirements for ensuring the conditions indicated in Paragraph 2, taking into consideration the type of electricity generation capacities for development of which an application for a licence is submitted and the list of required documents.
5. Refusal to issue an authorisation may be based on no other reason than a failure to fulfil the requirements of this Law.
Article 22. Connecting of Electrical Equipment of Generators to Electricity Grids
1. Electrical equipment of generators shall be connected to the electricity grid in accordance with terms and conditions provided for in this Law and its implementing legislation. The Ministry of Energy shall set terms and conditions of connecting electrical equipment of generators to the electricity grid.
2. The grid operator shall prepare and, in agreement with the Commission, publish on its website the terms for the use of electricity network. This procedure is based on objective, transparent and non-discriminatory criteria, which take into account the benefits and costs associated with connecting of generators electrical equipment to the power grid, and the particular operation circumstances of producers located in remote and sparsely populated regions.
3. The grid operator shall not have the right to refuse to connect the electrical equipment of generators to the electricity grid due to possible future bottlenecks in the electricity grid. The grid operator must connect the electrical equipment of the generator to the electricity grid, taking into account the requirements of the relevant technical regulations for connecting such equipment and installation and/or renovation of electrical grids of the generator and the grid operator.
4. The grid operator shall not have the right to refuse to connect the electrical equipment to the electricity grid due to the fact that this will lead to additional costs related with the necessary capacity increase in electricity grids.
5. The grid operator shall according to the procedure provided for in the laws provide the generators concerned with all information related to connecting of electrical equipment of the generators to the electricity grid, including the technical requirements, connecting terms and the investments required.
Article 23. Principles of Transmission Activities
1. The transmission system operator shall be responsible for stability and reliability of the electricity system, performance of the national balancing function in the territory of the Republic of Lithuania, provision of system services, operation, maintenance, management and development of interconnectors to electricity systems of other countries, by eliminating bottlenecks in the transmission grids and considering the needs of electricity system and users of electricity grids.
2. The transmission system operator shall be responsible for ensuring that conditions for the connecting the equipment of electricity generators, distribution grids operators and consumers are in conformity with the requirements laid down in legal acts and that discriminatory conduct is excluded.
3. Consumer equipment may be connected to the transmission grid only when the operator of distribution grids refuses to connect the equipment of the generator or consumer located in the territory indicated in the distribution grid operator’s licence to the distribution grids due to established technical or operational requirements.
4. The transmission system operator shall provide, on the basis of reciprocity, the transmission system operator of any other country with sufficient information to ensure the secure and efficient operation, coordinated development, integrity and interoperability of the interconnected system.
5. The transmission system operator shall be responsible for ensuring objective and non-discriminatory conditions for the access to the transmission grids for the users of electricity grids.
Article 24. Independence of the Transmission System Operator
1. When performing the functions provided for by this Law and other legal acts, the transmission system operator shall act independently from electricity generation, distribution and supply operations and their commercial interests.
Article 25. Appointment of the Transmission System Operator
1. A person may carry out transmission operations only after the receipt of electricity transmission license as specified in Articles 15 and 17 of this Law.
2. Until the appointment of the transmission system operator according to the terms and conditions provided for in this Article a fixed term licence for electricity transmission operation in the electricity sector shall be issued as referred to in Paragraph 9 of Article 15 of this Law, or a person may be temporarily appointed to conduct electricity transmission operation as set out in Paragraph 2 of Article 80 of this Law.
3. The transmission system operator having fulfilled the requirements set in Paragraphs 2 and 3 of Article 53 shall inform in writing the Commission and submit the supporting documents, data and information proving the fulfilment of the requirements. The Commission shall establish the terms and conditions for submission of the transmission system operator documents, data and information.
4. The Commission shall, no later than within 4 months after the submission of all the necessary and properly prepared documents, assess the eligibility of the requirements of the transmission system operator independence and unbundling of operations and decide on the appointment of the transmission system operator. At the end of the period specified in this Paragraph and the absence of the Commission decision, it shall be assumed that there is a positive decision on the appointment of the transmission system operator.
5. In cases specified in Paragraph 4 of this Article, the Commission shall inform the transmission system operator and the European Commission of the decision, together with the decision supporting documents, data and information.
6. Having received the positive opinion of the European Commission or having received no negative opinion of the European Commission within the time limits provided for in Article 3 of 13 July 2009 European Parliament and Council Regulation (EC) No. 714/2009 on access for cross-border exchanges in electricity and repealing Regulation (EC) No. 1228/2003 the Commission shall adopt the final decision on the appointment of the transmission system operator.
7. Having received objections of the European Commission regarding the appointment of the transmission system operator in accordance with the procedure set out in Paragraph 6 of this Article the Commission shall instruct the transmission system operator to remove the inconsistencies identified by the European Commission and, no later than within two months, make the final decision on the appointment of the transmission system operator.
8. The final decision on the appointment of the transmission system operator shall be sent to the transmission system operator and the European Commission, indicating how the received opinion of the European Commission was taken into consideration, and shall be published on the Commission’s website and in the Official Journal of the European Union. The European Commission’s opinion shall be published together with the Commission’s decision. Where the Commission’s decision differs from the European Commission’s opinion, the decision rationale shall also be published.
Article 26. Independence of the transmission system operator and monitoring of the implementation of operation unbundling requirements
1. The Commission shall monitor and supervise how the designated transmission system operator in the course of his operation ensures the requirements of independence and operation unbundling set in this Law.
The Commission shall initiate the inspection of the transmission system operator at least in one of the following cases:
1) upon receipt of a transmission system operator notification of planned transactions that have to be re-evaluated whether they comply with the requirements of transmission system operator independence and operation unbundling;
2) on its own initiative if there is grounded information received that due to a change in certain circumstances of the operation of the transmission system operator, the requirements of independence and operation unbundling of the transmission system operator are violated or may be violated;
2. The Commission shall decide on the transmission system operator's compliance with the independence and operation unbundling conditions and requirements no later than within four months from the transmission system operator's notification or the request of the European Commission or the starting date of the inspection of the operation of the transmission system operator on its own initiative, which shall be considered the date of the Commission's first notification of the carried out inspection to the transmission system operator.
3. In case when the Commission identifies violations of the transmission system operator requirements of independence and/or operation unbundling the transmission system operator must, within a specified period of time by the Commission to eliminate violations identified and submit supporting documents, data and information to the Commission. In the period before the publication of the Commission's final decision on the elimination of violations of the transmission system operator shall be deemed temporarily appointed to carry out electricity transmission operations.
Article 27. Appointment of the Transmission System Operator Controlled by Third Parties
1. When a person, who is under the direct or indirect control of a third party or third party persons, applies for a license for electricity transfer operation and/or the appointment to carry out transmission operation or this person acquires direct or indirect control over a transmission system operator, the Commission shall without delay inform the European Commission, providing all relevant information.
2. In order to properly implement the Commission's duty to inform the European Commission as provided for in Paragraph 1 of this Article, the person applying for the issue of electricity transmission license and/or appointment to perform transmission operations activities as well as a transmission system operator engaged in operation must without delay independently or at the request of the Commission provide all data and information related to the undertaking's direct or indirect control or its changes. The Commission shall establish the terms and conditions for submission of documents, data and information.
3. In order to ensure the transfer operation continuity as referred to in Paragraph 9 of Article 15, till the Commission's final decision on the appointment of the transmission system operator in accordance with the terms and conditions provided for in this Article the Commission shall issue to the eligible person a fixed-term operation license for electricity transmission in accordance with the provisions of Articles 15 and 17 of this Law.
4. The Commission shall decide on the appointment of the transmission system operator within four months from the date of notification provided for in Paragraph 2 of this Article. The Commission refuses to appoint a transmission system operator, if the person fails to prove that:
1) he has duly fulfilled the requirements of independence and operation unbundling set in Articles 24 and 53 of this Law;
2) his operation does not cause a threat to the electricity system operation security and reliability, public interests in the electricity sector, protection of the rights and legitimate interests of consumers, public safety or national security interests.
Conformity with the national security interests shall be assessed according to the terms and conditions provided for in the Law on Enterprises and Facilities of Strategic Importance to National Security and Other Enterprises of Importance to Ensuring National Security.
5. Before taking a decision on the appointment of the transmission system operator, the Commission shall consider the decision taken in accordance to the provisions of Point 2 of Article 4 as to whether the person's operations do not pose a threat to national security, as well as assess whether the person's operations do not cause a threat to electricity supply to the European Union or security and reliability of the individual Member States, taking into account:
1) rights and obligations of the European Union in respect of a relevant third party, which are provided for under international law including any agreement concluded with one or more third parties to which the European Union is a party and which addresses the issues of security of electricity supply;
2) the rights and obligations of the Republic of Lithuania in respect of a relevant third party that are provided for on the basis of the agreements concluded with them provided that they comply with European Union law;
6. When assessing the circumstances provided for in Paragraph 5, the Commission shall apply to the Ministry of Energy and/or other competent authorities regarding issuing the opinion which has to be taken into consideration before the final decision on the appointment of the transmission system operator.
7. The Commission shall inform the European Commission about the decision, together with any relevant information of this decision.
8. Before making a final decision on the appointment of the transmission system operator, the Commission must apply to the European Commission for an opinion on:
1) whether the person complies with the requirements of the independence and operation unbundling set out in Articles 24 and 53;
9. Having received a positive opinion of the European Commission or having received no negative opinion of the European Commission, no later than within two months from the date of receipt of the European Commission's opinion, or at the maturity date of a final European Commission’s opinion on the appointment of the transmission system operator, the Commission shall adopt a final decision regarding the appointment of the transmission system operator. A positive opinion of the European Commission shall not obligate the Commission to appoint a person the transmission system operator, if the person does not comply with the requirements of Point 2 of Paragraph 4 or other requirements of the legal acts.
10. Having received objections from the European Commission regarding the appointment of the transmission system operator, the Commission shall instruct a person to eliminate the inconsistencies identified by the European Commission, and no later than within two months make the final decision on the appointment of the transmission system operator. The removal of the European Commission's inconsistencies shall not obligate the Commission to appoint a person the transmission system operator, if the person does not comply with the requirements of Point 2 of Paragraph 4 of this Law or other legal acts. If a person does not eliminate the inconsistencies identified by the European Commission, the Commission may not appoint a person the transmission system operator.
11. The final decision on the appointment of the transmission system operator shall be sent to the transmission system operator and the European Commission, indicating how the received opinion of the European Commission was considered and shall be published on the Commission's website and in the Official Journal of the European Union. Together with the Commission decision the European Commission's opinion shall be published. When the Commission's decision differs from the opinion of the European Commission, the decision rationale shall also be published.
Article 28. Provision of Information
1. The transmission system operator, a person intending to engage in the operation of electricity transmission, and/or a vertically integrated undertaking or any undertaking of its group must submit all documents, data and information reasonably requested by the Commission or the European Commission necessary for the fulfilment of the actions provided for in Articles 25, 26 and 27 Articles of this Law.
2. The Commission or the European Commission may request to submit the documents, data or information referred to in Paragraph 1 of this Article at any time before the adoption of a Commission’s final decision. The Commission shall establish the procedure for submitting documents, data and information.
3. The transmission system operator must provide the Commission with the information on all planned transactions and all other relevant data and information or their changes that need to be re-evaluated as to whether they comply with the requirements for the independence and operation unbundling of the transmission system operator.
Article 29. The General Transmission System Operator
1. The person managing by the right of ownership the transmission grids located on the territory of the Republic of Lithuania, along with the other undertakings from other Member States managing by the right of ownership of managing transmission grids, may set up a joint venture – the general transmission system operator – which is engaged in the electricity transmission operation in the Republic of Lithuania and/or in other Member States.
2. The general transmission system operator shall be applied the same requirements of independence, unbundling of operations, licensing and appointment provided for in this Law and its implementing legislation, taking into consideration the conditions set in Paragraph 1 of this Article.
3. A part of the undertaking or of a group of undertakings of the general transmission system operator shall not be any other person except the independent transmission system operator approved by the Member State legislation who complies with the requirements of the legislation of the European Union and a respective Member State regarding independence and unbundling of transmission operation.
Article 30. Rights of the Transmission System Operator
The transmission system operator shall have the right:
1) to receive from generators, distribution grid operators and consumers whose equipment is connected to the transmission system the meter readings and other information necessary for planning the long-term development, carrying out the balancing function and fulfilling other duties listed in this Law;
2) to obtain from the users of the transmission grids the information necessary for third parties to use the transmission grids;
3) to lay down, in accordance with the technical regulations of grids operation, the conditions for the operation of the distribution grids, generators and users of the electrical equipment connected to the transmission grids, that would secure safe, stable and reliable operation of the electricity system;
4) to be the only trade representative of balancing and regulating electricity of the electricity system of the Republic of Lithuania with other countries’ electricity system, organize trade in balancing and regulating electricity, reserve capacity at auctions of the electricity system of the Republic of Lithuania;
5) to allow access to the transmission grids for transit to a foreign country, if it does not reduce the security of electricity supply and reliability of the electricity system of the Republic of Lithuania;
6) for the purpose of implementing accident prevention measures and emergency plans and for securing stability and reliability of operation of electricity system, to require that all market participants implement the necessary accident prevention and accident response measures;
7) prepare and approve the Rules for the Management of Interconnectors, Allocation and Regulation of their Capacity;
8) upon receipt of the permission of the generator, distribution grid operator or consumer to enter into territories and/or premises of electricity generators, distribution grids, consumers in order to install, maintain or change electricity measurement equipment or take their readings;
9) require from the suppliers of balancing energy who have concluded agreements with consumers located in the territory specified in the transmission system operator’s license to provide adequate security of the fulfilment of obligations to guarantee future and/or existing obligations of independent suppliers to purchase from the transmission system operator the electricity consumed by consumers but not purchased by the independent supplier, and to compensate for the resulting losses.
Article 31. Duties of the Transmission System Operator
The transmission system operator must:
1) forecast the long-term power balance of the electricity system and provide market participants with information about the forecasted shortage or limitations of the generation or transmission capacity;
2) provide users of transmission grids with the electricity transmission service in electricity transmission grids creating uniform and non-discriminatory conditions for all network users;
3) operate, maintain, manage and develop the grids and interconnections, having regard to the electricity system security and reliability, environmental protection, smart grid technology and development trends and economic conditions;
4) ensure the transmission grid equipment reliability and long-term system ability to meet reasonable demands of the electricity transmission;
5) organise and install the energy metering system of the transmission grids and operate and maintain its equipment by ensuring smart metering technology installation;
6) carry out measuring of electricity parameters and pass on electricity meter readings to market participants, including suppliers of balancing electricity for the quantity of electricity supplied by them;
7) connect the consumers’ equipment and the installations of distribution grid operators and producers to the transmission grids in accordance with the requirements of the appropriate technical regulations;
8) give duly substantiated reasons in writing for refusal to provide the existing and potential consumers with energy transport service. Such refusal may be substantiated by technical criteria only;
9) ensure a third-party access to the transmission grids, manage it and provide detailed explanations when such access is denied;
10) dispatch electricity generation capacities and electricity flows in electricity transmission grids in the territory of the Republic of Lithuania, having regard to exchange of electricity and restrictions of electricity flows coordinated with other electricity energy systems;
11) carry out the national balancing function by providing uniform, non-discriminatory and competitive conditions for all market participants;
12) fulfil the power and electricity reservation function by providing uniform, non-discriminatory and competitive conditions for all market participants;
13) compensate electricity costs in transmission grids. When purchasing electricity in order to compensate for such electricity costs incurred, ensure equal non-discriminating and competitive conditions for all market participants;
14) fulfil services implementing public interest in accordance with the procedure and conditions established by the Government or an institution authorised by it;
15) guarantee safe, reliable and effective operation of electricity transmission grids and all ancillary services necessary for that purpose;
16) as a controller managing the generation capacities for ensuring the national balancing function, ensure compliance with the conditions laid down in the Electricity Trading Rules and agreements with the providers of system services;
17) ensure efficient, reliable and safe functioning of transmission grids in the territory of Lithuania with due regard to environmental protection;
18) ensure the congestion management by market mechanisms, distribution of derived income from congestion and reimbursement of expenses resulting from the intersystem electricity flows in accordance with the principles laid down in Regulation (EC) No 714/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the network for cross-border exchanges in electricity and repealing Regulation (EC) No 1228/2003;
19) ensure confidentiality of information obtained in performing their functions and accounting for commercial or other secret, except in cases provided for by the law, and do not use this information for discrimination purposes of other electricity sector players. The Commission shall supervise and control that information which is received by the transmission system operator and which constitutes a commercial or other secret is not passed to any third parties, except in cases provided for by the law, and that the transmission system operator’s staff would not provide services or would not be transferable to companies engaged in electricity generation and supply activities;
20) provide sufficient information to the transmission system operator of another system with which the Lithuanian power system is connected in order to ensure safe and efficient operation of the interconnected system and coordinate its development and interoperability;
21) make available to the public on its website information relating to interconnectors, system use and distribution of capacities to the interested parties, having regard to the fact that not generalised information should be treated as confidential commercial information;
Article 32. Resources Disposable by the Transmission System Operator
1. The transmission system operator must have all human, technical, material and financial resources necessary for the fulfilment of its obligations under this Law and other legal acts and exercise of electricity transmission operation, in particular:
1) to have the assets necessary to carry out the electricity transfer operations, including transmission system, which he owns by the right of ownership as referred to in Paragraph 2 of Article 53 or on any other legitimate grounds;
2) to have the necessary personnel for the performance of electricity transmission operation, including the tasks of the undertaking;
3) according to the procedure prescribed by the law to dispose independently of the undertaking's material and financial resources required for the transmission of electricity or other directly related operations, including investment in the transmission system maintenance, support, service and development.
2. The transmission system operator shall not share information technology systems or equipment, physical premises and security access systems with any division of a vertically integrated undertaking.
3. The transmission system operator may use the shared services in the area of administrative support, information technology or other area directly not related to transfer operations together with a vertically integrated undertaking, undertakings of its group and their units only to the extent that such services do not provide a vertically integrated undertaking and undertakings of its group and/or their units an unfair advantage over other grid users, do not restrict competition among market participants, do not distort or prevent it. General services shall be provided according to the market conditions the legitimacy of which shall be assessed by the Commission in accordance with the procedure provided for by legal acts.
Article 33. Development of the Transmission Grids and Authorisations to Make Investment Decisions
1. The transmission system operator shall, no later than until 1 July of each year, submit to the Commission a ten-year plan for the development of transmission grids based on existing and planned energy supply and demand in the electricity system. Before providing the grid development plan to the Commission, upon the decision of the transmission system operator consultations shall be held with the competent state authorities and interested grid users. The grid development plan shall contain efficient measures for ensuring the adequacy of the system capacities and security of supply.
2. The grid development plan provided for in Paragraph 1 of this Article shall include in particular:
2) all the investments in respect of which the decision has been taken and new investments that will have to be made during the planned ten-year period;
3. When preparing the grid development plan, the transmission system operator shall make reasonable assumptions about the electricity generation, supply, consumption and trends of intersystem electricity flows, taking into account the investment plans in the regional and the European Union grids.
4. The Commission shall held transparent and open consultations on the grid development plan submitted by the transmission system operator with all interested grid users. The Commission shall publish the results of the consultations on their website, in particular the potential need for investments in the grid development.
5. The Commission shall assess whether the grid development plan submitted by the transmission system operator includes all investment needs identified during the consultation process, and whether the plan is compatible with the non-binding Community-wide ten-year grid development plan referred to in Point b of Paragraph 3 of Article 8 of the Regulation (EC) No 714/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the network for cross-border exchanges in electricity and repealing Regulation (EC) No 1228/2003.
6. The Commission carries out monitoring of the grid development plan and makes its assessment. The transmission system operator who fails to submit a development plan according to the terms set in Paragraph 1 of this Article or who submits a development plan but fails to comply with the requirements set in this Article and remove the inconsistencies within the Commission’s specified time limit shall be considered to have breached the conditions of the regulated electricity transmission operation.
7. In the case where the transmission system operator fails to make any investment which according to the grid development plan ought to have been executed in the subsequent three years, the Commission shall take the following measures to ensure that the investments would be made if they are needed according to the latest grid development plan:
2) obligate the transmission system operator to organize a tender open to all interested investors, taken into consideration the requirements for the independence of the transmission system operator provided for in this Law;
3) obligate the transmission system operator to increase the undertaking's authorised share capital in order to finance the necessary investments and allow independent investors to participate in the capital, having considered the requirements for the independence of the transmission system operator provided for in this Law.
8. In the event when the Commission exercises its powers specified in Point 2 of Paragraph 7 of this Article, it may require from the transmission system operator to fulfil one or more of the following requirements:
2) the investor who succeeds at the tender will carry out the development and/or renovation works of the transmission system infrastructure foreseen in the grid development plan;
3) the transmission system operator will carry out the development and/or renovation works of the transmission system infrastructure foreseen in the grid development plan;
9. The transmission system operator shall provide the investors with all the necessary information to carry out investments, connect the new transmission system assets to the transmission grids and make all reasonable efforts to create favourable conditions for the implementation of investment projects. Appropriate funding mechanisms shall be approved by the Commission.
Article 34. Guarantees of Settlement of Payments for Electricity Transmission through Transmission Grids
Distribution grid operators and users, devices of which are connected to the distribution grids and who have concluded the electricity supply agreement with an independent supplier regarding the electricity supply, must conclude an agreement with the transmission system operator and timely make payments for electricity via transmission grids.
An independent supplier who has concluded an agreement with the transmission system operator regarding the payment for the transmission services provided to the consumer, the distribution grids operator or a consumer having breached the agreement concluded with the transmission system operator must at the request of the transmission system operator, ensure fulfilment of all their obligations.
Article 35. Principles of Distribution Operation
1. The distribution system operator shall be responsible for his distribution grids from the connection point of the transmission grid equipment to the connection point of consumers’ or producers’ equipment, also for their safety, reliability, operation, maintenance, management and development in observance of the needs of distribution system users and for the electricity transmission for the users through the distribution grids, quality of the transmitted electricity, and the metering of electricity transmitted through distribution grids and installation of electricity meters.
2. The distribution system operator must ensure to the users of electricity grids non-discriminatory access to the distribution grids.
Article 36. Independence of the Distribution Grid Operator
1. When performing his functions under this Law and other legal acts, the distribution system operator shall carry out electricity distribution operation independently of the electricity generation, transmission and distribution activities as well as their commercial interests.
2. The distribution grid operator's independence shall be ensured by the implementation of terms and conditions for the unbundling of the distribution operations from other electricity sector operations as set out in Article 54 of this Law.
3. The independence requirements provided for in this Law in respect of the distribution grid operator must not interfere with the electricity transmission and distribution operation of the general operator of the transmission system and distribution grids, if it complies with the requirements of the unbundling of the transmission operation provided for in Article 53.
Article 37. Appointment of the Distribution System Operator
A person may engage in distribution activities only after the receipt of the licence for electricity distribution operation as specified in Articles 15 and 17 of this Law. A person who has received the licence shall be considered to be appointed to perform electricity distribution operation.
Article 38. Rights of the Distribution Grid Operator
The distribution grid operator shall have the right:
1) to receive metering data and other information from generators and consumers whose equipment is connected to the distribution system and from the transmission system operator that is necessary for the fulfilment of their duties and functions provided in this Law and its implementing legislation;
2) upon receipt of a consent from the related generator or consumer to access to the generator’s territory and/or premises in order to install, maintain, change or check the electricity metering equipment and items of energy accounting schemes located on the generator and/or consumer territory and/or the premises, to inspect their seals, scan electricity meter readings and perform other actions related thereto;
Article 39. Duties of the Distribution Grid Operator
The distribution grid operator must:
1) provide the distribution system users with the service of electricity transport through distribution grids;
2) reconstruct the existing and install the new distribution grids, taking into consideration smart grid technologies and development trends;
3) operate, maintain, manage and develop distribution grids and interconnections with other grids, securing reliable operation of the distribution grid, guaranteeing reliable, effective and safe supply with due regard to the environment;
4) organise, install, operate and maintain the metering of electricity transmitted through his distribution grids, and operate and maintain such metering equipment by ensuring installation of smart metering systems;
5) carry out measurements of electricity transmitted through distribution grids held by it and deliver electricity meter readings to the system operator and market participants in accordance with the procedure laid down by legal acts;
6) connect the consumer and generator equipment, located in the territory specified in the license for distribution operation, to the distribution grids in accordance with the corresponding technical regulations and specifications;
7) give duly substantiated reasons in writing for refusal to provide the existing and potential consumers with energy transport service. Such a refusal must be substantiated by technical criteria only;
8) compensate electricity costs in distribution grids. When purchasing electricity in order to compensate for such electricity costs incurred, ensure equal non-discriminating and competitive conditions for all market participants;
9) develop accident prevention and response plans in the distribution grids and control their implementation;
10) ensure that the information obtained in the course of operations accounting for commercial or other secret, shall be treated confidentially, except in cases provided by the law, and not use this information for discrimination purposes of other electricity sector participants;
Article 40. Guarantees of Settlement of Payments for Electricity Transmission through Distribution Grids
Consumers whose equipment is connected to the distribution grids and who have concluded a contract for the supply of electricity with an independent supplier must conclude the agreement with the distribution grid operator and settle payments on time for electricity transmission through transmission and distribution grids. An independent supplier who has concluded a contract with the distribution grid operator for billing the consumer for granted transmission services, and the user who has violated the contract with the distribution grid operator, must, upon the request of the distribution grid operator, provide the guarantee for proper fulfilment of all of his obligations.
Article 41. Principles of Supply
1. Consumers shall buy electricity from suppliers in accordance with terms and conditions provided for in this Law and its implementing legislation. Electricity shall be supplied to consumers of electricity supplied at public prices in accordance with the terms and procedure of Article 43 of this Law and guaranteed electricity supply shall be ensured in accordance with the terms and procedure provided for in Article 44 of this Law.
2. Suppliers shall sell electricity in the internal market of the Republic of Lithuania on electricity exchange and/or according bilateral trade agreements with producers, consumers and/or in accordance with the mutually agreed procedure of the Electricity Trading Rules. Imported and exported electricity shall be traded only on the stock market.
3. Balancing energy suppliers shall sell balancing electricity with the transmission system operator.
4. In case the suppliers are not the suppliers of balancing electricity, they must conclude electricity sale-purchase agreements with another supplier of balancing electricity who has concluded an appropriate agreement with the transmission system operator.
Article 42. Public Supplier
1. The distribution grid operator must, when no other person is issued a licence for public supply operation in the territory specified in his license for electricity distribution operations, perform public electricity supply operation by ensuring a safe and reliable supply of electricity to end-users in accordance with and conditions specified in this Law and its implementing legislation in order to protect legitimate rights and interests of these consumers related to satisfying the everyday needs of electricity consumption.
2. In case when the distribution system operator has not entered into a separate agreement with the consumer regarding electricity transmission services, the agreement concluded between the distribution grid operator and the consumer shall be considered the agreement for provision of electricity transmission service to a particular consumer.
Article 43. Public Supply of Electricity
1. By 31 December 2012 the public supplier must enter into agreements and supply electricity at a public electricity price for all household consumers located on the territory specified in the licence, also to the objects of consumers who requested this and who meet any of these criteria:
2. Since 1 January 2013 the public supplier must enter into agreements and supply electricity at a public electricity price for all household consumers located on the territory of his license and who have not chosen the independent electricity supplier and for socially vulnerable users or groups. Persons may be recognized as socially vulnerable consumers who according to the procedure provided for in laws of the Republic of Lithuania are applicable to social welfare and/or the provision of social services. The Government or its authorised institution shall set a list of socially vulnerable consumers and/or additional guarantees related to electricity supply.
3. The public supplier shall not be obliged to fulfil the requirements of this Article if such fulfilment is impeded by the circumstances that are beyond the control of the public supplier, including the actions of the state, third parties or force majeure, or other circumstances which the public supplier was not able to control or otherwise manage. Under these circumstances the public supplier, consumers and/or grid operators shall fully cooperate in order to avoid the circumstances creating obstacles to ensure the public supply of electricity. The Commission shall carry out supervision and control of reliability and the conditions of public supply of electricity.
Article 44. Guaranteed Electricity Supply
1. Consumers who have not chosen the independent electricity supplier within the time limits set in Article 43 of this Law or when the independent supplier chosen by them fails to fulfil his obligations to supply electricity to consumers according to agreed terms shall be ensured guaranteed electricity supply in accordance with the terms and conditions provided in this Article.
2. The public supplier shall perform the function of guaranteed electricity supply to consumers located on the territory defined in his licence under the following conditions:
1) guaranteed electricity supply to the consumer shall be ensured for a period not exceeding six months, if, after the public supplier starts to provide the service of guaranteed electricity supply, no later than three weeks from the receipt of the public supplier’s written notice of the service the consumer enters into an agreement with the public supplier. If the consumer does not conclude an agreement the public supplier shall be entitled to terminate the supply of electricity to the consumer or his objects;
2) if the consumer who has been provided a service of guaranteed electricity supply does not conclude an agreement with the public supplier during the time limit provided in Point 1 of this Paragraph and chooses an independent supplier, the consumer must pay to the public supplier for the electricity consumed according to the public supplier payment document;
3) consumers who are ensured guaranteed electricity supply shall be applied the price for guaranteed electricity supply which is calculated by applying the coefficient of 1,25 to the total amount of electricity purchase price set for the public supplier and the price of public supply service. The price for guaranteed electricity supply shall be calculated and determined by the public supplier;
4) household consumers who have not chosen an independent electricity supplier or when their selected independent supplier fails to comply with its obligations shall be ensured the electricity supply at a public electricity price in accordance with terms and conditions laid down in this Law and its implementing legal acts. Household consumers shall not be applied the conditions of guaranteed electricity supply.
3. Consumers who are ensured guaranteed supply of electricity according to the terms and conditions provided for in this Article shall settle with the grid operator, to whose grids their equipment is connected, for electricity transmission through the transmission and/or distribution grids and also for services corresponding to system services and services implementing public interest as set out in Paragraphs 5 and 6 of Article 46.
Article 45. Settlement Guarantees for Public Supplier
1. A consumer purchasing electricity from the public supplier in accordance with the terms and conditions of this Law and other legal acts must timely settle with the public supplier for the electricity consumed. The consumer who violates the agreement concluded with the public supplier must, at the latter’s request, provide a guarantee of the proper fulfilment of all his obligations.
2. The consumer shall have the right to unilaterally withdraw from the agreement with the public supplier without paying any charges. The consumer must give a written notice of the termination of the agreement to the public supplier no later than three weeks before the date of termination and pay to the supplier for the consumed electricity in full before the date of termination of the agreement.
Article 46. Independent Supply of Electricity
1. The independent supplier shall supply the consumers who have chosen the independent supplier with electricity on the basis of the agreements. Upon the consumer’s request, an independent supplier must, no later than within ten days from the date of the consumer’s request, prepare and submit a draft electricity purchase-sale agreement.
2. The independent supplier and the consumer shall by mutual consent coordinate the conditions of the electricity purchase -sale agreement. Agreements with household consumers must comply with standard conditions for electricity purchase-sale agreements approved by the Ministry of Energy. The independent supplier is not required to conclude an agreement with the consumer or to supply electricity to the consumer or its objects, if the consumer does not agree with the supplier’s conditions for independent power supply. The independent supplier’s refusal to conclude an agreement may be appealed against in accordance with the procedure provided for in Article 78 of this Law.
3. Before concluding or terminating an electricity purchase-sale agreement with the consumer the independent supplier must, three weeks in advance, provide a written notice to the grid operator to whose grids the consumer's equipment is connected.
4. Before concluding or terminating an electricity purchase-sale agreement with an independent supplier the consumer must, three weeks in advance, provide a written notice to the grid operator to whose grids the consumer's equipment is connected as well as to the public supplier on whose territory, specified in the license, the consumer's equipment is located, or to the person performing the guaranteed electricity supply function, if such consumer is not guaranteed public electricity supply in accordance with the terms and conditions laid down in Article 43 of this Law.
5. When purchasing electricity from the independent supplier consumers, whose equipment is connected to the distribution grids, must pay to the distribution system operator for electricity transmission through transmission and distribution grids as well as for system services and services implementing public interest. Having received the consent of the distribution grid operator and the independent supplier and remaining accountable to the distribution grid operator, the consumer may delegate the consumer's financial obligations, referred to in this Paragraph, to the independent supplier for fulfilment.
6. When purchasing electricity from the independent supplier consumers, whose equipment is connected to the distribution grid, must pay to the distribution system operator for electricity transmission through transmission grids as well as for system services and services implementing public interest. Having received the consent of the transmission system operator and the independent supplier and remaining accountable to the transmission system operator, the consumer may delegate the consumer's financial obligations, referred to in this Paragraph, to the independent supplier for fulfilment.
Article 47. Payment Guarantees to the Independent Supplier
1. A consumer buying electricity from the independent supplier must timely pay the independent supplier for the electricity consumed. The consumer who violates the agreement concluded with the independent supplier must, according to the independent supplier claim, submit a guarantee of proper fulfilment of all his obligations.
2. The consumer shall have the right to unilaterally terminate the agreement with the independent supplier according to the terms and conditions provided for in the agreement, with the exception of cases specified in Paragraph 3 of this Article. The consumer must, no later than one month after the receipt of the final (closing) statement of all payments specified in Paragraph 7 of Article 51 of this Law, pay to the independent supplier for electricity consumed and/or services provided.
3. The household consumer shall have the right to unilaterally withdraw from the agreement concluded with the independent supplier without paying any charges. The household consumer shall be required to submit a written notice of the termination of an agreement to the independent supplier no later than three weeks in advance and to pay to the independent supplier for the electricity consumed and/or services provided no later than within one month after the date of the receipt of the final (closing) statement specified in Paragraph 7 of Article 51 of this Law.
Article 48. Organisation of Electricity Metering
1. Grid operators shall be responsible for organising the measurement and metering of electricity transmitted through their managed grids.
2. In the case of consumers connected to the transmission or distribution grids and purchasing electricity from public or independent suppliers, electricity consumption determined according to the readings of metering equipment by grid operators shall be regarded by the transmission system operator as the actual electricity consumption which the public or independent supplier is obliged to purchase.
Article 49. Measures for Consumer Rights Protection
1. The State shall ensure the right of consumers to the availability and adequacy of electricity and protect, according to the procedure provided for in the laws, the rights and legitimate interests of consumers in relation to electricity generators, grid operators and suppliers and ensure that consumers are not discriminated against the costs, efforts and time.
2. In order to protect the rights and legitimate interests of consumers it shall be provided that:
1) consumers are free to choose an independent supplier of electricity as well as to enter into agreements with several suppliers in order to ensure their electricity needs;
2) consumers have the right to change the supplier, taking into account the periods for a notice and other conditions set in this Law and/or agreement with the supplier. When the consumer wishes to change the supplier in accordance with the notice periods and other conditions specified this Law and/or the agreement, the relevant operator shall take measures to facilitate change within the period of no more than three weeks;
3) consumers, who have not chosen an independent electricity supplier or the chosen independent supplier does not fulfil the obligations assumed and if such consumers of electricity are not supplied with electricity at a public price, are ensured guaranteed electricity supply in accordance with the terms and conditions specified in Article 44 of this Law;
4) services of electricity transmission, implementing public interest and ensuring guaranteed electricity supply are provided to consumers at reasonable, easily and clearly comparable prices, pursuant to transparent and non-discriminatory terms and conditions and by ensuring the right of consumers to obtain the set quality of electricity;
5) socially vulnerable consumers and their groups, the list of which is established by the Government or its authorised institution, are ensured the public electricity supply for an indefinite period;
6) the Government or its authorised institution takes appropriate measures to solve the electricity shortage issues, prepare national action plans related to energy, provide social security exemptions according to the laws, to ensure an adequate supply of electricity to socially vulnerable consumers and their groups and support in order to increase efficiency of electricity consumption.
Article 50. Reliability of Electricity Transmission and Ensuring of Service Quality Requirements
1. Transmission system and distribution grid operators must ensure safe, reliable and continuous electricity power transmission to the boundary of the object in the consumer’s ownership. Interruption or limitation of electricity supply shall only be possible in accordance with terms and conditions of this Law and its implementing legislation.
2. Distribution system and distribution grid operators must comply with the set requirements of reliability and service quality for electricity transmission.
3. The Commission shall supervise and control the grid operators’ compliance with the requirements of reliability and service quality for electricity transmission as set out in Paragraph 2 of this Article. Persons who fail to comply with the requirements of reliability and service quality for electricity transmission shall be liable according to the procedure provided for in the law.
Article 51. Communication with Consumers
1. Consumers shall have the right to:
1) obtain from the Commission, transmission system and distribution grid operators, public and independent providers as well as persons engaged in the guaranteed electricity supply function clear and understandable information about their rights in relation to electricity consumption and access to services;
2) access electricity consumption data, including the amount of electricity consumed and, having entered into a clear agreement, allow any supplier a free of charge access to their metering data;
2. The conditions of agreements for electricity purchase-sale or service provision that are concluded with electricity consumers according to the procedure provided in legal acts must be fair and predictable. Such contracts, taking into account the individual characteristics of the subject matter of the agreement, among other things, shall include:
1) the name of the party to the agreement, the code, the address of a registered office and mailing address of a legal person, another organisation or branch of a legal entity of another Member State that is registered in the Republic of Lithuania, the name and surname of the individual who is the party to the agreement, his personal identification number, address, telephone number and e-mail address (if any);
2) the obligations of the parties to the agreement, their nature and extent, the proposed level of service quality, the initial connection period and the entry into force of the agreement, and the starting date of service provision;
5) contact details of the electricity undertaking, contact persons or information centres and their working hours during which the consumer may obtain the information of interest about the performance of the agreement;
6) the duration of the agreement, terms and information on the renewal and termination of the execution of the agreement, extension and termination of the agreement or the specified right to cancel the agreement free of charge;
7) compensation of damages if the quality of services does not meet the level specified in the agreement and/or the electricity undertaking does not fulfil the obligations assumed or fulfilment is inadequate, including inaccurate and late invoice delivery;
3. Users must be notified in writing and/or by electronic means of communication about the intention of the electricity undertaking to change the terms of the agreement. When providing information about this intention, it shall be obligatory to notify about the consumer's right to contradict to the change of the terms of the agreement and/or to terminate the agreement.
4. The suppliers shall create appropriate and sufficient conditions for consumer access to information and data on payments for the electricity supplied to them. Appropriate and adequate means of access shall be the submission of the statement to the consumer or electronic access to the consumer's payment information or other reasonable means. Upon customer request and in the consumer acceptable manner, by granting electronic access or in writing, the suppliers shall provide:
1) the actual electricity prices and the actual electricity consumption at least once per calendar year;
2) the comparison between the consumer's current electricity consumption and electricity consumption for the same period of the last year;
5. The suppliers, associations of suppliers, to which the relevant supplier belongs, and/or electricity exchange shall, upon the consumer’s request, publish on the respective website the following:
1) comprehensive information about the part of each energy source made in the amount of fuel sources, including renewable sources, used for generation of electricity provided by the supplier last year, if such information is available;
2) links to sources of information that provide comprehensive information about the environmental impact, including the amounts of gases causing greenhouse effect and radioactive waste resulting after the electricity generation over the last year;
3) contact information of consumer organizations, associations, agencies or similar bodies, including websites where you can find information on available measures for increasing efficiency of electricity consumption, comparative end-consumer profiles and/or the objective technical specifications of energy consuming equipment.
6. When consumers are provided with electricity traded in the electricity exchange or imported from persons located outside the Member State the last year’s summarized data of the exchange or a person located outside the Member State may be used to provide information specified in Paragraph 5.
7. After the consumer changes the electricity supplier, the previous supplier must no later than within six weeks, unless the agreement sets a shorter period of time, provide the consumer with the final (closing) statement for the electricity consumed and/or services provided.
8. The Commission shall take the necessary measures to ensure the reliability of the information provided to consumers and specified in this Article and that such information is made available at the national level in a clearly comparable manner.
9. The Commission shall prepare and publish on its website and periodically update a clear and concise list of questions and answers for electricity consumers, which would include practical information on consumer rights. In preparation of information on household consumer rights, the Commission shall cooperate with the Authority. In addition, the Commission shall publish on its website the list of questions and answers for consumers prepared by the European Commission and ensure that suppliers or distribution grid operators in cooperation with the Commission take the necessary steps to ensure that the relevant list of questions and answers is published on the websites of suppliers and/or distribution grid operators, informing about the aforementioned consumers by electronic means of communication and, when this is not possible, a copy of a list of questions and answers shall be sent to the consumer.
10. The general information centre shall be established in accordance with the terms and procedures of the Government or its authorised institution for the provision of all relevant information to the electricity consumers about their rights, current legislation and available methods for dispute resolution.
Article 52. Protection Measures of Household Consumer Rights
1. Apart from protection measures of consumer rights specified in this Chapter, the household consumer shall also have the right to:
1) unilaterally and without any charges terminate the electricity transmission service agreement and/or electricity purchase-sale agreement, by providing a written notice to the grid operator and/or supplier no later than three weeks prior to the expected date of termination of the agreement;
2) conclude the open-ended electricity purchase-sale agreements with the public supplier in cases when the household consumer does not chose the independent supplier of electricity or the selected independent supplier does not fulfil the obligations assumed and the household consumer intends to buy electricity from the public provider, and the open-ended electricity purchase-sale agreement with the independent supplier and electricity transmission service agreement with the distribution grid operator.
2. Agreements concluded with domestic consumers must include information on the rights of household consumers in relation to dispute resolution, as provided for in Article 78 of this Law.
Article 53. Unbundling of Transmission Operation
1. When the transmission system operator is a part of a vertically integrated undertaking on the effective date of this Law, he must be independent in its legal form, organization and decision making from other operations of the vertically integrated undertaking not related to transmission. In order to ensure the independence of the transmission system operator the following requirements must be fulfilled:
1) the transmission system operator shall take the decisions on the transmission operations and transmission system operation, maintenance and use of the assets for development independently from the vertically integrated undertaking;
2) members of the managerial bodies of the transmission system operator and heads of the departments of an undertaking shall not participate in the supervisory and management bodies of the vertically integrated undertaking which are either directly or indirectly responsible for the daily electricity generation and/or supply operations;
3) adequate measures must be taken to ensure that the professional interests of the members of the managerial bodies of the transmission system operator and the heads of the departments of an undertaking are taken into account so that they may act independently;
4) the vertically integrated undertaking, having regard to the ceilings of the prices of transmission services set by the Commission shall approve only the annual financial plan of the transmission system operator or any equivalent document, the annual rate of return on assets and the maximum amount of liabilities and does not give guidance to the transmission system operator on the management of the transmission system, including decisions related to construction or renovation of transmission lines, if these decisions do not exceed the approved annual financial plan or any equivalent document;
5) the transmission system operator shall approve a compliance program which sets out for employees the obligations and measures to prevent discrimination of grid users and market participants and ensure supervision of the compliance with adequate measures and obligations and shall, on an annual basis, prepare and publish on its website and submit to the Commission a report on the measures that were taken for the fulfilment of this program;
6) the transmission system operator shall appoint an officer in charge of the compliance program (Compliance Officer) and shall take appropriate steps to ensure that he is completely independent from the vertically integrated undertaking and can access all the relevant information of the transmission system operator and any affiliated undertaking for the fulfilment of his functions;
2. No later than from 3 March 2012 a vertically integrated undertaking and the transmission system operator must ensure complete unbundling of the transmission system operator from the vertically integrated undertaking, including, but not limited to, the unbundling of the transmission system operator control and electricity transmission operation, including the transfer of the ownership of the assets used in the operation of electricity transmission to the transmission system operator.
3. In order to ensure full independence of the transmission system operator from other types of electricity operations not related to transmission, the following mandatory requirements for the transmission system operator shall be set as of the date specified in Paragraph 2 of this Article:
1) the transmission system operator must manage according to the right of ownership the transmission grids, their technological pertinents and other assets necessary for proper fulfilment of the electricity transmission operation;
2) the same person or persons shall not be entitled to direct or indirect control of a person engaged in the production and/or supply operations and to direct or indirect control of the transmission system operator or have any rights in respect of the transmission system operator concerned;
3) the same person or persons shall not be entitled to direct or indirect control of the transmission system operator and to direct or indirect control of a person engaged in the production and/or supply operations or have any rights in respect of such person;
4) the same person or persons are not entitled to appoint the supervisory bodies of the transmission system operator, managerial bodies or members of the administration and directly or indirectly control the person engaged in the generation and/or supply operations or exercise any rights in respect of such person;
4. The rights specified in Points 2, 3 and 4 of Paragraph 3 shall include first of all:
5. Making decisions that implement requirements specified in Paragraphs 3 and 4 of this Article shall be deemed guided by the provisions of this Law. Provisions of other legal acts apply to the extent they do not contradict to this Law.
6. In the case the person indicated in Paragraph 3 of this Article is a state institution, agency, organization or another public body, it shall be assumed that the transmission operation unbundling is appropriately implemented if the transmission system operator and the bodies engaged in the electricity generation or supply operations are directly or indirectly controlled by separate state institutions, agencies, organizations or other public bodies. State institutions, agencies, organizations and other public bodies shall not be separate where they are directly subordinate to the same public body, in violation of requirements of the transmission system operator’s independence, as set out in Paragraph 3 of this Article.
7. When taking the decisions implementing the provisions of Points 2 and 3 of Paragraph 3 and Paragraph 4 and the electricity transmission unbundling the undertaking performing operations in the gas sector shall also be considered as an undertaking performing generation, transmission and supply operations, as set out in the Republic of Lithuania Law on Natural Gas.
8. Persons of the Member States engaged in electricity generation and/or supply operations, may not directly or indirectly control the transmission system operator of the Republic of Lithuania who have implemented the requirements of Paragraphs 2 and 3 of this Article or have any rights in his respect.
Article 54. Unbundling of Distribution Operation
1. When the distribution grid operator is a part of a vertically integrated undertaking on the effective date of this Law, the distribution grid operator must, in its legal form, organization structure and its decisions, be independent of another electricity energy type operations not related to distribution. In order to ensure the independence of the distribution system operator it is necessary to comply with the following requirements:
1) the distribution grid operator shall be independent from the vertically integrated undertaking when making decisions related to the use of assets necessary for performance of distribution operations and maintenance, supervision and development of the distribution system,
2) members of the managerial bodies of the distribution grid operator and department heads of an undertaking shall not participate in the supervisory and management bodies of a vertically integrated undertaking responsible for daily power generation, transmission, and/or supply operations;
3) it is necessary to take the appropriate steps to ensure that the professional interests of the management bodies of the distribution grid operators and the department heads of an undertaking are taken into account so that they can act independently;
4) a vertically integrated undertaking shall confirm having regard to the price ceilings for the distribution services set by the Commission, the distribution grid operator's annual financial plan, or any equivalent document, the annual rate of return on assets, and the maximum amount of liabilities and does not give guidance to the distribution grid operator on the management of distribution grids, including decisions related to the distribution line construction or renovation, if such decisions do not exceed the approved annual financial plan or any equivalent document. When implementing the rights and duties of the shareholder of the distribution grid operator in accordance with the procedure provided for in the legal acts, a vertically integrated undertaking shall have the right to apply other coordination mechanisms of the distribution grid operator operation, to the extent it does not conflict with the independence and operation unbundling requirements provided for in this Law;
5) the distribution grid operator shall establish a compliance program which sets out obligations for employees and measures to prevent discriminatory behaviour and ensure the proper supervision of set measures and compliance with the obligations and shall, on an annual basis, prepare and publish on its website and submit to the Commission a report on measures taken to comply with this program;
6) the distribution grid operator shall appoint the compliance officer in charge of the program maintenance (Compliance Officer) and shall take appropriate steps to ensure that he is completely independent from the vertically integrated undertaking and can access all relevant information of the distribution grid operator and any affiliated undertakings;
7) it shall be necessary to take the appropriate steps to ensure that the distribution grid operator manages all the resources including human, technical, material and financial resources, necessary to properly perform his functions and disposes of them independently from the vertically integrated undertaking.
2. Requirements provided for in Paragraph 1 of this Article shall not create an obligation to separate the assets of distribution grid operator from the assets of vertically integrated undertaking.
3. When implementing the independence of the legal form, organization structure and decision-making of electricity distribution activities, as set out in Paragraph 1 of this Article, a vertically integrated undertaking and the distribution grid operator shall ensure that the distribution grid operator shall not perform the electricity generation and/or independent supply operations and shall act independently from the commercial interests of these types of operations. This requirement shall not restrict the rights and responsibilities of the distribution grid operator in ensuring public supply of electricity for the purposes provided for Paragraph 1of Article 42 of this Law, provided that the distribution grid operator has implemented the requirements of operation types and accounting separation provided for in Paragraph 1 of Article 56.
4. When the distribution grid operator is a part of a vertically integrated undertaking, the Commission shall carry out the supervision of the distribution grid operator ensuring that the distribution grid operator is unable to take advantage of vertical integration in order to distort competition.
5. When providing information and creating its own trade or service mark the distribution grid operator, which is a part of a vertically integrated undertaking, may not allow for the similarity with the identity of the person which is a part of a vertically integrated undertaking and which is engaged in electric power generation, transmission and/or independent supply business.
Article 55. Consequences of Non-Compliance with the Requirement of Operation Unbundling
For non-compliance or improper fulfilment of independence requirements of electricity transmission or distribution operations and requirements of operation unbundling, provided that these violations were not removed within a reasonable time specified by the Commission, a vertically integrated undertaking and/or the grid operator may be imposed, in accordance with the terms and procedure provided for in this Law, a fine in the amount of up to ten per cent of the undertaking's annual revenues received the previous year from the concrete regulated operations in the course of which the violation was made. Penalties shall be imposed in accordance with the terms and conditions laid down in the Law on Energy.
Article 56. Accounting Separation
1. The transmission system operator, distribution grid operator and the public supplier must keep separate accounts for electricity transmission, distribution and public supply operations, services implementing public interest as well as other operations not related to electricity.
2. Manufacturers and independent suppliers must keep separate accounts for operations not related to the electricity sector.
3. Rules for Accounting Separation and accounting separation requirements, including requirements for the independent audit which must be carried out by the persons specified in this Law at the time intervals set by the Commission, shall be determined by the Commission.
4. Transmission system operators, distribution grid operators, generators and suppliers shall prepare their annual financial statements, provide to the independent audit and publish in accordance with the terms and conditions specified in the Republic of Lithuania Accounting Law, the Republic of Lithuania Law on Financial Statements of Entities and the Republic of Lithuania Law on Consolidated Accounts of Groups of Undertakings.
Article 57. Provision of Information
1. The Government or an institution authorised by it, which has been authorised under the law to draw up a National Energy Strategy, a National Energy Efficiency Programme, other draft energy programmes shall have the right to request from the generation, transmission, distribution grids or supply undertakings to receive the information necessary for drawing up the above-mentioned projects.
2. For the Commission to carry out within its remit the regulation and supervision of the electricity sector, it shall be entitled to receive information available from state institutions, including European Union institutions and other Member States as well as information available from local authorities and institutions, electricity generation, transmission, distribution and supply undertakings, the electricity exchange operator and other persons that is necessary for proper supervision of the electricity market,.
3. Generation, transmission, distribution or supply undertakings and the electricity exchange operator must provide information specified in Paragraphs 1 and 2 of this Article in the manner prescribed by legal acts.
4. The Commission or other institutions shall ensure confidentiality of the information containing commercial (industrial) or professional secret and may use the confidential information received only for the purposes for which the information was requested. Confidential information may be disclosed only in cases when it is necessary for competent authorities to properly carry out their functions in accordance with laws.
5. The Government or the institution authorised by it shall, no later than within six months after the entry into force of this Law, notify the European Commission about all measures taken to ensure universal services of transportation, to protect consumers and environment and to fulfil the requirements of services implementing public interest in the electricity sector as well as about the expected impact of applied measures on competition. The Government or an institution authorised by the Government shall every two years after the first information report notify the European Commission of any changes in such measures.
6. The Commission shall every two years, before 31 July submit to the European Commission a report on the electricity market.
The report must include:
Article 58. Principles for Organisation of Electricity Trading
1. Electricity shall be traded in accordance with the Electricity Trading Rules the requirements of which comply with the targets set out in Article 3 of this Law.
2. The consumer’s object based in one geographical location and independently connected to the distribution or transmission grids may receive electricity from several suppliers chosen in accordance with the procedure set in the Rules for Electricity Supply and Use.
3. All electricity market participants shall be granted the right of regulated third party access to transport electricity. This right shall be exercised by concluding electricity transport agreements in compliance with the Rules for the Use of Electricity Grids approved by the Government or an institution authorised by it.
Article 59. Electricity Market Model
1. Electricity market shall be organized in the ways specified in the Electricity Trading Rules by applying the regulatory third-party participation principle for electricity transmission.
2. Trading in auxiliary instruments shall be organized separately from the trading of electricity on the exchange.
3. The transmission system operator or distribution grid operator shall have the right to restrict third-party participation (access) in electricity transportation, if there is a shortage of the necessary capacity. Such restriction must be based on objective and technically and economically justified criteria.
4. Standard conditions for electricity purchase-sale agreements with household consumers and standard terms and conditions of electricity transmission service contracts with domestic consumers shall be approved by the Ministry of Energy in coordination with the Authority.
5. Every producer and supplier shall be responsible for conformity between purchase or sale of the electricity generation quantity necessary for satisfying the purchasing demand and the electricity quantity specified in electricity purchase-sale schedules. Trading in balance and regulatory energy shall be carried out in accordance with the Electricity Trading Rules.
6. The transmission system operator shall, when performing the national balancing function, draft a national balance sheet corresponding to the purchased and sold electricity amount, in accordance with the data furnished by balancing energy suppliers, shall verify the accuracy of the data according to the data of electricity trading on the exchange and trade under bilateral agreements, and shall coordinate activities of generators in case of interruptions and accidents, purchase electricity necessary to compensate the costs of electricity on the transmission grid and provide services implementing public interest in the electricity sector.
Article 60. Electricity Market Liberalization
1. All electricity consumers in the Republic of Lithuania may be free to choose an independent supplier in accordance with terms and conditions of this Law and its implementing legislation.
2. Consumers' switching from the regulated electricity supply to the electricity supply based on contractual relationships with independent suppliers shall be implemented and electricity supply at a public electricity price guaranteed in accordance with the terms and conditions of Article 43 of this Law.
Article 61. Rights of Consumers, Suppliers and Generators to Conclude Supply Agreements
1. Consumers shall have the right to enter into electricity purchase-sale agreements with suppliers and producers who, in accordance with the procedure provided for in this Law, have the right to perform electricity supply operation and operating in the territory of the Republic of Lithuania or in other Member States.
2. Upon the supplier consent, consumers shall have the right to conclude with him an electricity purchase-sale agreement irrespective of the fact in which Member State the supplier is registered, provided that the supplier follows the requirements for electricity trading laid down in legal acts of the Republic of Lithuania. When applying for a permission to engage in independent electricity supply operation, for the registration of a market participant, when entering into agreements with consumers and in other cases, the supplier may not be discriminated because of his establishment in other Member State than the Republic of Lithuania.
3. When concluding electricity purchase-sale agreements with suppliers, consumers shall conclude agreements regarding electricity transportation operation with transmission system or distribution grid operators, subject to the grid the consumer’s equipment is connected to. The purchase-sale agreement between the consumer and supplier may, upon the consent of the grid operator, provide for the right of independent supplier to carry out the consumer’s monetary obligations related to the payment for the service of electricity transmission through transmission and distribution grid.
Article 62. Participation of New Electricity Generators on the Market
Every person who in accordance with the terms and conditions provided for in Articles 16 and 17 of this Law has received a permission to generate electricity may become an electricity generator.
Article 63. Electricity Exchange
1. Electricity shall be traded on the electricity exchange in accordance with the terms and conditions provided in the Electricity Trading Rules.
2. Wholesale trade in electricity on the exchange shall be organised, local technical service and support of the electricity trade shall be ensured and exchange shall be administered by the exchange operator.
3. A person who is engaged in economic commercial activities in the Republic of Lithuania or in another Member State, complies with the requirements of Paragraph 4 of this Article and has concluded an agreement with the transmission system operator defining the relationships between the electricity exchange operator and the transmission system operator shall have the right to perform the operation of the electricity exchange operator. The transmission system operator shall prepare and approve the standard conditions of the agreement with the electricity exchange operator.
4. A person who intends to perform the operation of the electricity exchange operator must meet the following minimum requirements:
1) by the right of ownership or on other legitimate basis to manage technical measures ensuring the exchange of information with the transmission system operator and the software necessary for the operation of the electricity exchange operator;
2) by the right of ownership or on other legitimate basis to manage means of communication necessary to ensure information exchange with electricity exchange participants;
3) to have at least ten years of experience of organization and administration of electricity exchange experience in a Member State when the annual turnover of such exchange is no less than 50 TWh;
5. An electricity exchange operator shall start his operation after having entered into an agreement with a transmission system operator and having announced the Rules for Trading on Electricity Exchange no later than two months before the start of his operation.
6. An electricity exchange operator does not have the right to authorise other persons to carry out the operation of the electricity exchange operator and must comply with the following general operating conditions:
1) in accordance with the terms and conditions set out in legal acts to provide to the competent state institutions and authorities, as well as to announce, information on the wholesale of electricity on the electricity exchange and other electricity exchange operating conditions;
3) to inform and advise electricity exchange participants and other market participants on the electricity exchange organization and operational issues;
Article 64. Electricity Market Supervision
1. The Commission shall perform the electricity market supervision and monitoring and announce reports of electricity market monitoring in accordance with the terms and conditions provided for in legal acts.
Article 65. Supervision of Competition in the Electricity Sector
1. The Commission shall seek to create conditions for effective competition in the electricity sector and its development as well as conditions to prevent persons from abusing their influence on the market. Pursuing this objective the Commission shall under the procedure provided for in this Law perform market analysis of the electricity generation and independent supply to ensure effective competition in the electricity sector and prevent persons with significant influence on the electricity market from abusing this influence.
2. The Commission shall carry out market analysis:
3. The market analysis procedure shall include the following stages:
4. Market analysis shall be carried out by the Commission in accordance with the terms and conditions set in the Rules for Electricity Market Analysis approved by the Commission. Market analysis shall be conducted by the Commission. Market analysis shall be initiated by the Commission’s decision.
5. When investigating the market, the Commission shall be guided by legal acts of the Republic of Lithuania, European Union legislation and shall take into account the recommendations of the competent institutions of the European Union and/or the Republic of Lithuania.
6. The Commission shall complete the market analysis procedure within four months after the decision to initiate a market analysis, excluding time duration of consultations on market analysis referred to in Article 11 of this Law. By a reasoned decision of the Commission, this period may be extended, but not more than three times and by not more than three months each time. The Communications Regulatory Authority shall seek to complete the market analysis within the shortest period of time possible. The market analysis shall be completed by a decision of the Commission on the results of the market analysis. The decision shall indicate the results of every completed stage of the market analysis.
7. Before making a decision that would define a certain market of products or services or would identify or not identify the persons with significant influence on the relevant market or would establish or not establish or eliminate the relevant obligations provided for in Paragraph 1 of Article 68, the Commission must carry out a public consultation in accordance with Article 11 of this Law.
8. When making a decision, the Commission shall evaluate the comments received during the public consultation as well as the opinions and publish a summary of them on its website. The Commission shall submit a final decision to the Government or its authorised institution.
9. The Commission shall publish on its website the list of respective markets where the persons with significant influence on the market have been identified and the list of persons with significant influence on these markets as well as obligations set for them and also any changes to this information.
10. When conducting a market analysis and deciding whether a person has significant influence on the market and imposing obligations on persons with significant influence on the market, the Commission shall take into account the relevant provisions of international treaties and/or agreements and ensure within their remit the compliance with and implementation of such treaties and/or agreements in the Republic of Lithuania.
Article 66. Significant Influence on the Electricity Market
1. A person shall be deemed to have significant influence on the market if he either individually or jointly with other persons enjoys a position equivalent to dominating position, i.e. such position of economic strength that allows him to act fairly independently from competitors, customers and consumers.
2. Where a person has a significant influence on one market, he may be deemed to have significant influence on a closely related market, if the links between the two markets are such as to allow the market influence held on one market to be exercised on the other market and thereby strengthen the person's influence on the market.
3. A person shall be deemed as having significant influence on the market when after the market analysis this is identified by the Commission’s decision and he shall be deemed as such until during the next market analysis the Commission determines by the decision that this person does not have significant influence on the market.
Article 67. Price Regulation
1. Prices of electricity and reserve power sold by generators and independent suppliers shall not be regulated, unless the Commission, pursuant to the Rules for Electricity Market Analysis having examined the market determines that such generator or supplier has significant influence on the market and, due to a lack of effective competition, may impose excessive prices or use price squeeze which is detrimental for market participants. When performing the market analysis, the Commission shall consult with the Competition Council. The Commission shall have the right to impose the requirements, set out in Paragraph 1 of Article 68 of this Law, to the generators or independent suppliers with significant influence on the market.
2. The Commission shall regulate prices for transmission, distribution and public supply services as well as public electricity prices by setting the price caps. The specific prices and tariffs for transmission, distribution, public supply services and public electricity shall be set and changed by the service supplier.
3. The price of guarantee supply of electricity shall be calculated in accordance with the terms and conditions of Point 3 of Paragraph 2 of Article 44 of this Law.
4. Pricing methodology for connecting the equipment of consumers and generators to the electricity grid shall be approved and price tariffs shall be set and differentiated by the Commission in accordance with the following general criteria:
9) assessment of the possibility to use objects of electricity undertakings to connect the equipment of other consumers;
5. When equipment of a consumer or a generator is connected to transmission grids, the consumer and/or the generator shall pay all costs related to the connection of the equipment to electricity transmission grids.
6. When electricity equipment of a consumer or a generator is connected to the distribution grid, the costs shall be allocated as follows:
1) household consumers as well as other consumers who are indicated on the list approved by the Government or an institution authorised by it as socially vulnerable consumers shall pay 20 per cent of the distribution grid operator's costs or shall pay the fee which is calculated and approved by the Commission in accordance with this amount;
2) other consumers, except consumers indicated in Point 1 of this Paragraph shall pay 40 per cent of the distribution grid operator's costs or shall pay the fee which is calculated and approved by the Commission in accordance with this amount;
3) generators shall pay 100 per cent of the distribution grid operator’s costs or shall pay the fee which is calculated and approved by the Commission in accordance with this amount, unless otherwise provided for in other laws;
7. The grid operator’s costs associated with the connection to the electricity grid of electricity equipment of the generator who produces electricity from renewable energy sources shall be distributed between the generator and the grid operator in accordance with terms and conditions of the Law on Energy from Renewable Sources.
8. The costs of the distribution grid operator referred to in Paragraphs 6 and 7 shall cover the transmission system operator’s costs incurred due to the electricity transmission grid development or renovation related to the connection of the equipment of the consumer or the manufacturer to the distribution grids. The consumer and the generator shall, in accordance with the cost distribution procedure provided for in Paragraph 6 of this Article, cover the abovementioned costs of the transmission system operator to the transmission system operator and the distribution grid operator shall cover to the transmission system operator 100 per cent of the costs of the transmission system operator incurred when connecting electrical equipment of the generator or 40 per cent of the costs of the transmission system operator incurred when connecting the consumer’s electrical equipment. The remaining uncovered costs of the transmission system operator shall be considered to be the costs of the development of the transmission system operator’s grids.
9. In case when a household consumer whose electricity equipment was connected to the electricity distribution grid by applying the cost distribution procedure of Point 1of Paragraph 6 of this Article begins to use the electricity supplied by this equipment for his own needs or other persons' economic commercial or professional needs no later than 12 months from the moment of connecting the electrical equipment, such consumer shall not be considered a household consumer and, upon the distribution grid operator’s requirement, must cover the remaining costs calculated in accordance with the procedure set in Point 2 of Paragraph 6 of this Article.
Article 68. Cost Accounting and Control
1. For a person with significant influence on the electricity market and for providers of electricity transmission, distribution services and/or a public supplier the Commission shall:
1) impose obligations to provide services at cost-based prices subject to reasonable returns on investments;
2) impose obligations relating to cost accounting systems for provision of specific types of services;
2. When imposing the obligations the Commission shall take due account of the person with significant influence on the electricity market and the right of the transmission, distribution service provider, and/or the public supplier to a reasonable return on investments. The Commission's obligations must be clearly defined, transparent, non-discriminatory, and verifiable and must guarantee equal possibilities to provide services for users.
3. When calculating reasonable return on investments referred to in Paragraph 2 of this Article, the Commission shall take into account the annual interest rate for loans issued to non-financial corporations by the Bank of Lithuania, the annual interest rate of government securities auctions, the state credit risk, the capital structure of a person against whom a reasonable equivalent of return on investment is calculated, and other economic factors directly affecting calculation of a reasonable return on investment.
4. A person with significant influence on the electricity market, who is subject to an obligation provided for in Point 1 of Paragraph 1 of this Article, shall, in accordance with the procedure of this Law and other legal acts and good business practice, ensure efficiency of operation in the electricity sector and cost efficiency. In case when, without prejudice to the requirements of the legal acts set for the security and reliability of operation in the electricity sector, operation performance indicators are improved compared to the Commission’s obligations laid down in accordance with the procedure of this Law, the person engaged in such operation shall be entitled to a higher return on investment over the regulatory period. Legal grounds for profit distribution of an electricity undertaking shall be set out in the law regulating a relevant legal status of the person.
5. When determining the obligation provided for in Point 1 of Part 1 of this Article, the Commission may impose a cost recovery mechanism and/or pricing methodology which promotes efficiency and, as far as possible, the long-term competition in the electricity generation and independent supply markets, implementation of the national strategic electricity sector projects increasing the national energy independence and security and reliability of electricity supply, and which also increases benefits for consumers. Aiming to achieve this, the Commission shall enjoy the right to have regard to costs and prices of relevant service providers available on comparable markets.
6. The Commission shall require that a person with significant influence on the electricity market as well as a transmission and distribution service provider and/or a public supplier prove the validity of prices with regard to costs. The Commission shall have the right to set a mandatory reasonable time limit for submitting the evidence. If a person with significant influence on the electricity market as well as a transmission, distribution service provider and/or a public supplier does not prove within this time limit the validity of prices with regard to costs, it shall be assumed that the prices set by the person are unreasonable with regard to the costs.
7. Until a person with significant influence on the electricity market proves the validity of prices with regard to costs, the Commission shall have the right to impose temporary price caps, taking into account the data on the corresponding costs obtained by indirect cost evaluation methods. When establishing temporary price caps, the Commission shall compare prices of relevant services, taking into account the practice of the Member States, the practice of countries with a similar level of development and the practice of the Republic of Lithuania, as well as evaluating the ratio between relevant wholesale and retail prices.
8. The price caps for transmission, distribution and public supply services shall be fixed in accordance with the terms and procedures set in Article 69. The Commission shall have the right to set temporary price caps for transmission, distribution and public supply services, as set out in Paragraph 8 of Article 69, taking into account the criteria of Paragraph 5 of this Article.
9. When imposing the obligation provided for in Point 2 of Paragraph 1 of this Article the Commission shall have the right to establish cost accounting rules and cost accounting requirements, in order to calculate costs of efficient provision of services.
10. If aiming to ensure price control the Commission imposes the obligation provided for in Point 2 of Paragraph 1 of this Article on a person with significant influence on the electricity market as well as a transmission, distribution service provider and/or a public supplier, such person must, in accordance with terms, procedures and deadlines set out by the Commission, prepare a cost accounting system, present its description to the Commission and comply with the requirements of this cost accounting system. The cost accounting system and the manner of its publication must be in compliance with the cost accounting rules laid down by the Commission.
11. The Commission shall have the right to determine the cost accounting system, method, and/or model binding for a person with significant influence on the electricity market as well as for a transmission, distribution service provider and/or a public supplier. The Commission must publish the above accounting system, method and/or model on its website.
12. A person with significant influence on the electricity market as well as a transmission and distribution service provider and/or a public supplier must perform the audit of his managed accounts in compliance with the cost accounting system and/or method and/or model and cost accounting rules laid down by the Commission as well as the requirements laid down in other legal acts. The audit opinion shall be published annually in accordance with the rules established by the Commission.
Article 69. Regulation of Prices for Transmission, Distribution and Public Supply Services
1. The Commission shall set cap prices for transmission, distribution and public supply services in accordance with the Law on Energy, this Law and methodologies for setting price caps. When setting price caps of transmission, distribution and public supply services the Commission shall take into account the costs of providing these services.
2. Price caps for transmission, distribution and public supply services shall be set for a five-year regulatory period. This period may be modified by a reasoned decision of the Commission. The Commission must inform the Government or its authorised institution about this decision. The relevant Commission’s decision on the change of the regulatory period shall apply no earlier than upon the end of the previous regulatory period.
3. Cap prices for transmission, distribution and public supply services and prices for services implementing public interest may be adjusted not more than twice a year, when there are major changes in one or several factors based on which the price caps or prices for services implementing public interest were determined, including substantial changes in volume of services, inflation, tax, other objective (independent from the market participant) factors.
4. In determining price caps of transmission, distribution and services implementing public interest and assessing prices and tariffs the Commission shall ensure that transmission system and distribution grid operators are granted appropriate incentives to increase efficiency of electricity consumption in the short and long term and to promote electricity market integration and supply security and to support related research.
5. Price cap for transmission service shall be set or recalculated no later than 90 calendar days and the price limits for distribution, public supply services no later than 75 calendar days before the beginning of the regulatory period or of the beginning of a respective year of the regulatory period.
6. After the Commission has determined the price caps, service providers shall have the right to differentiate the prices for services according to objective criteria. When differentiating the prices, service providers must follow the principle of non-discrimination and give a due consideration to the principle of increasing the efficiency of electricity consumption. The price for transmission service may be differentiated into the components for electricity consumers, generators and importers importing electricity from countries other than the Member States. The prices of transmission, transportation, distribution services may, in all cases except for the part of the price for service implementing public interest, be differentiated into the capacity and electricity components. Public electricity price may be differentiated into the access and electricity components. Service providers shall set the price differentiation procedure the description of which shall be approved by the Commission.
7. The public supplier shall set the public price and tariffs of electricity for six calendar months. The public electricity price shall be determined as the difference of electricity purchase price, transmission, public service, distribution and public supply price and the actual electricity purchase price as well as the forecast electricity price for the previous period. The Commission shall check the public prices and tariffs determined by the public supplier in accordance with the procedure laid down in Paragraph 8 of this Article.
8. The Commission shall announce the prices and tariffs set by the service provider not later than within 30 calendar days from the day of the receipt of the service provider’s application, having first ascertained that the requirements for setting prices and tariffs were not violated when determining the prices and tariffs and the consumers are not discriminated. Having ascertained that the prices and tariffs set by the service provider are not complying with the requirements of setting prices and tariffs or those consumers are discriminated, the Commission shall indicate to the service provider the errors to be corrected and submitted to the Commission not later than within ten calendar days from the receipt of the Commission’s comments. The Commission shall, not later than 30 calendar days from the submission of the corrected prices and tariffs, announce them or, if the service provider fails to correct the indicated errors within the set time limits, shall unilaterally set the service prices and tariffs and announce them.
9. The electricity selling price of producers whose electricity and reserve capacity prices are regulated and the prices and tariffs of the transmission system operator’s transmission service shall become valid two months after the announcement thereof. The distribution grid operator’s distribution service prices and tariffs as well as public electricity prices and tariffs shall become valid one month after the announcement thereof.
10. At the end of each year of the regulatory period, the Commission shall control whether the service provider ensures the implementation of the price caps set by the Commission. Having identified the difference between the Commission's price caps and the weighted average of prices and the tariffs actually applied by the service provider, the Commission shall obligate the service provider to adjust respectively the prices and tariffs of other years of the regulatory period.
11. The same electricity prices and tariffs as those applied to domestic consumers shall be applied to the farms of farmers registered in the register of farms whose annual income from agricultural activities account for more than 50 per cent of all income the economic size of which during the previous fiscal year (from 1 January to 31 December) is equal to 14 economic units or less according to the calculations of the state enterprise Agriculture Information and Rural Business Centre.
12. The power rate component shall only apply in August, September and October to agricultural entities whose agricultural possessions registered in the Republic of Lithuania agricultural and rural business register and whose annual income from agricultural activities account for more than 50 per cent of all income the economic size of which during the previous fiscal year (from 1 January to 31 December) is greater than 14 economic units according to the calculations of the state enterprise Agricultural Information and Rural Business Centre, as well as recognized agricultural cooperative societies (cooperatives) receiving electricity from low voltage electricity grids.
13. The same electricity prices and tariffs as those applied to household consumers shall be applied to gardeners, associations of owners of individual car garages purchasing electricity for the general use of the association members, also associations of owners of or associations of owners of dormitory type multi-apartment residential buildings or authorised representatives of the members to the partnership agreement of the aforementioned buildings or the administrators of the mentioned houses of flats and other premises of common use facilities, purchasing electricity for general use of multi-residential houses and/or elevators, dormitory type multi-apartment residential buildings (flats, rooms, common use and/or elevators).
14. Community type organizations and associations purchasing electricity from low-voltage electricity grids for the individual needs of their members unrelated to business or profession and whose activity indicated in the incorporation documents is not related to the business or profession, shall, at their request, be charged the same electricity prices and tariffs as household consumers. Community type organizations and associations must, together with a request to be charged the same electricity prices and tariffs as household consumers, submit to the public supplier and/or distribution grid operator copies of the incorporation documents of community type organization and association and the documents certifying the management of an electricity consuming object by the ownership right or another right.
Article 70. Transport of Electricity through a Direct Line
1. Electricity may be transported to the consumer objects through a direct line linking the generator and the consumer objects in the following cases:
1) when the direct line connects the electricity generation and consumption sites not connected to the transmission or distribution grids;
2. Persons supplied with electricity through a direct line shall have to settle payments for the fulfilment of services implementing public interest. The transmission system operator shall not perform the function of power and energy reservation for these consumers. The Commission shall determine the public price paid for service implementing public interest for consumers receiving electricity through direct lines.
3. Criteria for granting authorisations for construction of a direct line must be objective and non-discriminatory. Criteria for granting authorisations for construction of a direct line shall be established in the Rules for Issuing Operation Authorisations in the Electricity Sector in accordance with the requirements of this Law.
4. An authorisation to build a direct line shall be issued only if grid operators refuse to allow the use of transmission or distribution grids or the dispute settlement procedure begins in accordance with the procedure provided for in this Law on the basis of a complaint of the generator or consumer against the grid operator action or omission when adopting a decision on the access to transmission and distribution grids.
5. An authorisation to build a direct line shall be issued only in agreement with the grid operator managing the electricity grids to which the electrical equipment of the generator and/or consumer is connected regarding the requirements for technical structures and operation of a direct line in order to ensure the electricity system compatibility and integrity. The grid operator's requirements for technical structures and operation of a direct line must be technology-based and non-discriminatory.
6. The Commission may refuse to issue an authorisation to build a direct line if the granting of an authorisation would violate the general principles for regulation of electricity sector operation set in Article 4 of this Law. The Commission must submit duly substantiated reasons for its refusal.
CHAPTER ELEVEN
INTERRUPTION AND RESTRICTION OF ELECTRICITY SUPPLY.
TECHNICAL AND SAFETY REQUIREMENTS
Article 71. Conditions for Temporary Interruption and Restriction of Electricity Transport to Consumers not through their Fault
1. Electricity transportation to consumers may be temporary interrupted in the absence of the consumer fault but solely to protect the public interest, including the emergency situation in energy sector declared in accordance with the Law on Energy or the work of connecting of new consumers or the electricity grid maintenance.
2. The interruption or restriction of electricity transportation to consumers without prior notice shall be possible only in cases when an attempt is made to avoid an accident or failure of the electricity system, or the operator's electricity grid or eliminate the accident, failure or damages, including the circumstances indicated in Paragraph 1 of this Article. In these cases, according to the terms and procedure provided for in the legal acts, the consumer must be promptly informed of electricity supply interruption or restriction.
3. For the purpose of performing electricity grid maintenance works, the transmission system or distribution grid operator may partly or fully disconnect the consumer’s equipment for the required time period only subject to the schedule defined in advance and upon at least ten days’ notice given to the consumers. Conditions for temporary interruption of the transport of electricity with a view to securing public interests and the procedure for calculation and compensation of sustained losses shall be established by the rules approved by the Ministry of Energy.
Article 72. Interruption of the Electricity Transport to Consumers due to their Fault
1.Transmission system or distribution grid operator may terminate the electricity transportation to consumers who by their actions cause interference and affect negatively the quality of electricity, if these consumers having received a written notice within five days do not stop these actions, either immediately and without prior notice, if due to consumers actions a threat arises of an accident on the transmission or distribution grids or a threat of compromising the electricity system security and reliability.
2. The transmission or distribution system operator may interrupt the transportation of electricity to those consumers who, upon receipt of a written warning, failed to pay the bills for consumed electricity or for its transportation and related services within 15 days in case of household consumers and within ten days in case of other consumers.
3. The transmission system or distribution grids operator may interrupt, subject to a prior warning and in accordance with the terms indicated in Paragraph 2 of this Article, the transportation of electricity to those consumers who refuse the entrance of the authorised representatives of the transmission system or distribution grid operator to their territories and/or premises to install, maintain or change electricity metering equipment or to read their meters. Consumers’ obligation to facilitate the transfer system or distribution grid operator to install, maintain or change electricity metering devices or to read their meters and the terms and procedure of these obligations shall be laid down in the Rules for Electricity Supply and Use.
Article 73. Technical Requirements for Efficiency, Reliability and Safety of Electricity Equipment
1. Electricity equipment installation, operation and safety requirements in the electricity sector shall be established by the Rules for Electricity Equipment Installation, Rules for Power Plants and Electricity Grid Operation and Rules for Safety of Electricity Equipment Operation approved by the Ministry of Energy.
2. Accidents and interruptions in electricity equipment generating, transmitting, distributing or consuming electricity shall be investigated following the procedure established by the Regulations on the Investigation and Recording of Accidents and Interruptions at Energy Facilities, approved by the Government or an institution authorised by it.
3. State control of electricity objects and equipment shall be performed by the State Energy Inspectorate in accordance with the procedure set in the Law on Energy. The state energy control, among other things, shall cover control of electricity objects of energy undertakings and energy consumers, state control of internal grids and equipment, as well as control of compliance with electrical equipment reliability, efficiency and safety requirements.
Article 74. Provision of Services Implementing Public Interest in the Electricity Sector
1. In order to implement the strategic goals of the national energy, economic and environmental policy objectives and ensure the implementation of public interest, the Government, in accordance with the provisions of the laws regulating the legal framework of operation of this and other energy sectors, may determine that the services implementing public interest include:
2) generation of electricity in a co-generation mode in combined power and heat generation plants when these plants supply heat to the heat systems and the primary energy amount saved is such that the combined heat and power generation may be considered effective;
3) the production of electricity in the identified plants where electricity generation is necessary to ensure security of energy supply;
4) ensuring reserve of electricity system in the identified plants the operation of which is necessary to ensure the energy security of the State;
5) development of electricity generation capacities that are strategically important for ensuring security and reliability of the electricity system or energy independence of the State;
6) implementation of strategic projects of electricity sector related to improving energy security by constructing new interconnectors with electricity systems of other countries and/or connecting the electricity system of the Republic of Lithuania with electricity systems of other Member States;
2. The Government shall, solely in accordance with the provisions of Paragraph 1 of this Article, approve the list of services implementing public interest in the electricity sector and establish the procedure for the provision of these services.
3. The Government shall appoint the administrator of funds for services implementing public interest in accordance with the appointment procedure of the administrator of funds for services implementing public interest, as established by the Government.
4. The Government or its authorised institution may, pursuing the public interest in the electricity sector and having assessed the activities of market participants, its nature, extent and impact on the overall national electricity system, obligate the market participants to provide the services implementing public interest in the electricity sector provided for in Paragraph 2 of this Article on a non-discriminatory basis from the point of view of the rights or obligations of these market participants.
5. When approving the list of services implementing public interest in the electricity sector and imposing obligations to provide services implementing public interest, the criteria of economic feasibility, minimum cost and impact on the price of electricity to end-users must be obeyed.
Article 75. Use of Land for Electricity Objects
1. Electricity objects and facilities shall be constructed in accordance with the procedure established in the Law on Construction and its implementing legislation. Upon completion of construction, reconstruction or major repairs of electricity objects and facilities specified in Paragraph 2 of this Article the construction completion act shall be drawn up in accordance with the procedure of the Government or its authorised institution. The procedure for the completion of construction of electricity objects and facilities specified in Paragraph 2 of this Article shall be established by the Government or its authorised institution.
2. Overhead low and medium voltage electricity lines intended for the transmission of electricity, overhead cables, also underground cable lines and installations, including transformer substations equipment, together with underground cable channels, poles holding the lines and other fixtures shall be considered as movable objects.
3. In order to ensure operation, maintenance, repair, reconstruction, modernization and/or use of electricity objects and facilities located on the land or other immovable objects that do not belong by the right of ownership or on other legal grounds to the electricity undertaking managing electricity objects and facilities this Law shall provide for the servitudes on land and other immoveable objects within the boundaries of protective zones of these objects and facilities, as defined in legal acts.
4. The transmission system operators and distribution grid operators shall have the right to freely approach on foot or by car or otherwise access the electricity object held or operated by them and located within the territory of another owner or user of land or other immoveable object, to carry out, in the manner established by legal acts, their repair works, technical maintenance, operation, reconstruction or upgrading, and to construct new electricity objects without expanding the boundaries of protective zones. Without a written consent of the transmission system and distribution system operators any construction, repair, reconstruction works or demolition of any structures, carrying out of all kinds of mining, loading, bottom lowering, land excavation, explosion, amelioration, flooding works, mechanised storage of agricultural crops, construction of animal keeping sites, wire and metal fencings, planting or felling of trees, performance of other restricted works or actions provided for under legal acts shall be prohibited. The operators shall examine and respond to the applications for the performance of the above-listed works no later than within 15 calendar days from the receipt of the application. Failure to give a response within the specified time limit shall be treated as the operator’s consent.
5. The distances of protective zones, special land and forest use conditions applicable therein, the works and actions restricted in protective zones, minimum permitted distances from electricity objects to structures, land and water surface shall be set by the Rules for the Protection of Energy Facilities approved by the Government of the Republic of Lithuania and other legal acts.
6. Transmission system or distribution grid operators shall have the right to construct new transmission, distribution grids or install other electricity facilities on the land that does not belong by the right of ownership or on other legal grounds to the electricity grid operator only upon the agreement with the land owner or with the owner's consent, or upon the imposition of the servitude on the land in the manner established by laws. Requirements specified in this Paragraph do not apply to grid operators when performing the actions specified in Paragraph 3 of this Article.
7. Losses incurred by the land owner or user due to construction of new transmission or distribution grids and other electricity installations as well as activities of electricity entities in the servicing of the above-mentioned grids or installations shall be compensated in the manner established by laws.
8. If imposition of land servitudes for building new transmission, distribution grids or other electricity installations results in a material restriction of the use of the land plot and this restriction is approved by the commission formed in accordance with the procedure established by the Government or its authorised institution, the transmission system or distribution grid operator must at the land owner’s request buy out such a land plot together with immovable property thereon.
Article 76. Cooperation with Foreign National Regulatory Authorities in the Electricity Sector
1. The Commission shall be working with foreign national regulatory authorities in the energy sector:
1) in promoting the integration of the national market at the European Union and regional level and aiming at connecting the national electricity grids with foreign state electricity grids;
2) in ensuring that the transmission system operator has one or more regional integrated systems for capacity distribution and electricity grid security, incorporating one or more Member States;
3) in developing operational measures to develop optimal conditions for electricity grid management;
5) in promoting creation of the systems for distribution of cross-border capacity and ensuring of grid security;
6) in allowing for proper level of interconnection capacities, including new interconnectors in order to ensure the development of effective competition and to improve the security of supply without discrimination of suppliers of the Member States;
7) in coordinating the preparation of all electricity grid codes for the relevant transmission system operators and other market participants;
2. The Commission may enter into cooperation agreements in the electricity sector with the foreign national regulatory authorities in the electricity sector and, within its remit, participate in international and regional organizations, associations, committees, commissions and working groups.
3. The Commission shall, within its remit, represent the Republic of Lithuania in the activities of the Agency for the Cooperation of Energy Regulators operating in accordance with Regulation (EC) No 713/2009 of the European Parliament and of the Council of 13 July 2009 establishing an Agency for the Cooperation of Energy Regulators.
4. The Commission, in cooperation with the Agency for the Cooperation of Energy Regulators and foreign national regulatory authorities in the electricity sector, shall exchange information necessary to perform Commission’s duties under this Law and other legal acts. The Commission shall ensure the confidentiality of the information received.
Article 77. Cooperation of the Transmission System Operator with Foreign Transmission System Operators
1. The transmission system operator shall cooperate with foreign transmission system operators in order to create a competitive internal market of electricity:
2. When performing the functions assigned, the transmission system operator may enter into cooperation agreements with transmission system operators of other states, regulatory authorities and, within its remit, participate in international and regional organizations, associations, committees, commissions and working groups.
3. The transmission system operator of the Republic of Lithuania shall participate in the activities of the European Network of Transmission System Operators for Electricity functioning according to the Regulation (EC) No 714/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the network for cross-border exchanges in electricity and repealing Regulation (EC) No 1228/2003.
Article 78. Consideration of Complaints and Disputes
1. Complaints and disputes shall be considered in accordance with the procedure established in the Law on Energy and this Law. Household consumer complaints shall be considered in accordance with the procedure established in the Republic of Lithuania Law on Protection of Consumer Rights and the Republic of Lithuania Law on Prohibition of Unfair Business-to-Consumer.
2. Electricity undertakings must examine the incoming electricity consumer requests, suggestions and complaints regarding existing or anticipated provision of services and to respond no later than within 30 calendar days from the date of their receipt.
3. The State Energy Inspectorate shall consider consumer and electricity undertaking complaints and disputes regarding failure of electricity objects, facilities and metering devices, operation, electricity quality requirements, accidents, electricity blackouts, suspension or restriction in accordance with the preliminary mandatory extrajudicial procedure for consideration of complaints and disputes. The State Energy Inspectorate shall consider consumer and electricity undertaking complaints and disputes regarding violations of electricity metering and payment for the consumed electricity in accordance with the preliminary non-mandatory extrajudicial procedure for consideration of complaints and disputes.
4. In accordance with the preliminary mandatory extrajudicial procedure for consideration of complaints and disputes and within its remit, the Commission shall handle complaints and disputes regarding electricity undertakings' action or omission in distributing, transmitting and supplying electricity, regarding refusing the right of the electricity undertakings to use grids and systems, regarding connection to the electricity grid, balancing of electricity supply, application of prices and tariffs, as well as handle electricity consumer and natural person complaints and disputes relating to services in the electricity sector and/or purchase and sale of electricity.
5. Complaints of household electricity consumers regarding application of unfair conditions of the electricity purchase-sale agreements and agreements regarding connecting of new household consumers' equipment, as well as household consumer complaints regarding unfair business-to-consumers by electricity suppliers shall be examined by the Authority.
6. In case the consumer approaches the institution examining the complaints and disputes and he did not approach the supplier first regarding the matter of application, the institution takes measures to reconcile the parties. The dispute here, if the provider during the period of this institution offers a peaceful settlement of the dispute and the user agrees with the settlement of the dispute, or within the time limit does not indicate that it disagrees with the settlement of the dispute. The supplier offering the user a proposal for a peaceful settlement of the dispute must inform the consumer in writing regarding the proposal, provide all the necessary information about the proposed peaceful settlement of the dispute and make clear that if the consumer fails within the time limit to notify the supplier that he does not agree to a peaceful settlement of the dispute, the dispute will remain pending.
Article 79. Liability
Persons who do not comply with or do not fulfil the requirements of this Law shall be held liable in the manner established by law.
Article 80. Implementation of the Law when Performing Transfer Activities
1. If on the day of entry into force of this Law the transmission system operator does not meet the conditions and requirements for operation unbundling, a vertically integrated undertaking and a transmission system operator or entities controlling them must take all necessary measures to implement these conditions and requirements, including reorganization, unbundling of the undertaking, the transfer of the undertaking shares by the transmission system operator or by the entity controlling him to the State with or without compensation.
2. The transmission system operator engaged in transfer activities under a license issued before the entry into force of this Law shall be considered as temporarily appointed to carry out transfer activities until the Commission approves in accordance with the conditions and procedure established in this Law the proper fulfilment of conditions and requirements for independence of the transmission system operator and operation unbundling.
3. In case the transmission system operator fails to submit by 3 March 2012 to the Commission the documents supporting the full unbundling of the transmission system operator from the vertically integrated undertaking in accordance with the terms and procedure provided for in this Law, the Commission acting in compliance with the procedure established by the institution authorised by the Government shall designate an independent system operator for the temporary exercise of electricity transmission operation.
4. The independent system operator referred to in paragraph 3 of this Article shall start to perform operation no later than within the time limit established by the Commission. The independent system operator shall administer the transmission system and shall receive from the owner of the system a remuneration fixed by the Commission for the operation performed. Mutual rights and obligations of the independent system operator and the transmission system owner shall be established in a cooperation agreement approved by the Commission. The independent system operator shall carry out operation until the transmission system operator ensures complete unbundling of his operation from the vertically integrated undertaking and is appointed in accordance with the terms and procedure established in Chapter Five of this Law.
Article 81. Implementation of the Law when Performing Transfer Activities
1. If on the day of entry into force of this Law the distribution grid operator does not comply with conditions and requirements for operation unbundling specified in this Law, a vertically integrated undertaking and a distribution grid operator must take all necessary measures to implement them, including reorganization of the undertaking or other legitimate measures.
2. The distribution grid operator shall ensure that no later than from 3 March 2012 commercial interests of a distribution grid operator who is a part of a vertically integrated undertaking and of other operations not related to electricity distribution shall be unbundled with a view of implementing the requirements established in Paragraphs 1 and 3 of Article 54.
Article 82. Implementation of the Law when Performing Independent Transfer Operations
1. From the day of entry into force of this Law persons carrying out the independent electricity supply and holding the permission issued in accordance with the procedure specified in this Law to engage in independent electricity supply operation for the purposes of Article 45 of the Republic of Lithuania Law on Excise Duty (hereinafter: 'the Law on Excise Duty') shall be treated as persons holding the licences for operation in the electricity sector provided for in this Law.
Article 83. Law Implementation Procedure when Concluding Agreements with Consumers
1. If on the day of entry into force this Law the conditions of valid electricity purchase-sale and/or service provision agreements concluded with consumers do not comply with the requirements of Paragraph 2 of Article 51 and Paragraph 2 of Article 52, the Ministry of Energy shall prepare and approve the required amendments to the standard conditions of the electricity purchase-sale agreements and agreements on provision of transportation service with household consumers as well as the amendments to the standard conditions and Rules for Electricity Supply and Use. Electricity undertakings must, in accordance with the procedure established by the Ministry of Energy, publish on their websites and announce in other ways established by the Ministry of Energy detailed information referred to in Paragraph 2 of Article 51 and Paragraph 2 of Article 52.
Article 84. Law Implementation Procedure when Performing the Operation of the Electricity Exchange Operator
Until the beginning of the operation of the exchange operator, as specified in Paragraph 5 of Article 63 paragraph of this Law, the wholesale trade in electricity on the exchange shall be organised, local technical service and support for electricity trade shall be ensured and electricity exchange shall be administered by a person who carried out the operation of the market operator before the day of entry into force of this Law.
Article 85. Entry into Force and Application of the Law
2. Paragraph 1 of Article 53 shall apply to the unbundling of the operations of the transmission system operator until complete unbundling of the transmission system operator from the vertically integrated undertaking in accordance with the conditions specified in Paragraphs 2 and 3 of Article 53.
3. The project of a new nuclear power plant provided for in the Law on Nuclear Power Plant and related issues shall be regulated by the Law on Nuclear Power Plant. Provisions of this Law shall be applied to the relationships concerning the project of a new nuclear power plant and related issues to the extent they are not regulated by the Law on Nuclear Power Plant.
I promulgate this Law passed by the Seimas of the Republic of Lithuania.
PRESIDENT OF THE REPUBLIC VALDAS ADAMKUS
Annex to
the Republic of Lithuania
Law on Electricity
LEGAL ACTS OF THE EUROPEAN UNION IMPLEMENTED BY THIS LAW
1. Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market (OJ 2004 special edition, Chapter 12, volume 2, p. 121) with the latest amendments done by Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 (OJ 2009 L 140, p. 16).
2. 2003/796/EC: Commission Decision of 11 November 2003 on establishing the European Regulators Group for Electricity and Gas (OJ 2004 special edition, Chapter 12, Volume 2, p. 255).
3. Decision No 1364/2006/EC of the European Parliament and of the Council of 6 September 2006 laying down guidelines for trans-European energy networks and repealing Decision 96/391/EC and Decision No 1229/2003/EC (OJ 2006 L 262, p. 1).
4. Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC (OJ 2009 L 211, p. 55).
5. Regulation (EC) No 713/2009 of the European Parliament and of the Council of 13 July 2009 establishing an Agency for the Cooperation of Energy Regulators (OJ 2009 L 211, p. 1).
6. Regulation (EC) No 714/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the network for cross-border exchanges in electricity and repealing Regulation (EC) No 1228/2003 (OJ 2009 L 211, p. 15).
7. Council Regulation (EU, Euratom) No 617/2010 of 24 June 2010 concerning the notification to the Commission of investment projects in energy infrastructure within the European Union and repealing Regulation (EC) No 736/96 (OJ 2010 L 180, p. 7).