Lithuania is holding to the position that the methodology currently being applied unilaterally by Latvia and Estonia, among other things, is disrupting intra-EU trade by granting a privilege to trade in electricity from third countries. This is due to the difference between the actual and declared capacities of the Lithuanian-Latvian power interconnections. According to the above-mentioned rules, when declaring large volumes of imports from Russia to Latvia, it is necessary to reserve Lithuanian-Latvian power interconnection capacities, which are not actually used.
In this way, the methodology unilaterally applied by Latvia and Estonia artificially increases the price of electricity in Lithuania and disrupts the EU market. Electricity market monitoring data show that as a result, the difference in electricity prices in Lithuania and Latvia was as much as EUR 20/MWh at certain hours in March.
Lithuanian and Estonian electricity market participants are incurring losses as a result, and have already applied to the European Commission, calling for a faster solution to be found between the EC and the Baltic States on a tripartite methodology.
The methodology proposed by Lithuania would ensure a competitive and transparent market, and would also prevent electricity generated by the Astravets nuclear power plant in Belarus from entering the Lithuanian market, which would keep Lithuanian consumers from funding further development of the Astravets NPP. It would also help ensure Lithuania’s energy independence by increasing local power generation from renewable sources.
