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    Tax & Law Newsletter
    Baltic Legal Solutions Lithuania
    January, 2010
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    Energy

          Order No 1-215 of 24 November 2009 of the Minister of Energy on Approving the Proceedings of Providing Public Interests Compatible Services (Official Gazette (Valstybės žinios), No 140–6159).

          

          Pursuant to Articles 3, 5 and 49 of the Law on Electricity of the Republic of Lithuania, and the powers delegated to the Ministry of Energy of the Republic of Lithuania to approve the list of public interest compatible services and the proceedings of provision of such services granted by Paragraph 1.1.11 of the Resolution No 1462 of 22 November 2004 of the Government of the Republic of Lithuania on Delegation of Powers under the Law on Electricity of the Republic of Lithuania, and implementing Directive 2003/54/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in electricity, the Order approved the Proceedings of Providing Public Interests Compatible Services.

          

          The Proceedings settled the general energy supply conditions of energy sector services concerning public security, environment protection and energy generation from renewable resources and generation of electricity in combined power energy and heat producing cycle power stations, and regulates requirements and liabilities to electricity provision licence holders, market, transfer and distribution network operators to provide such services.

          

          It should be noted that the proceedings are binding to state and municipal institutions and to persons engaged in electricity market functioning, power energy production, supply, transfer and distribution, irrespective of their legal form.

          

          The Proceedings include several groups of conditions: (i) conditions in case of which the generation of electricity is supported (producers must use renewable resources in electricity production, producers must produce electricity in cogeneration regime in combined power energy and heat producing cycle power stations and to provide heat to heating systems, etc.); (ii) conditions, which apply in establishing the amount of funds compliant to public services, which the operator of transfer system must pay to producers; (iii) conditions as apply to public interests adequate to service funds payment.

          

          The Proceedings also regulate such issues as safety assurance of electricity supply, terms of services compliant to public interests fund payment, the liability of producers to apply for establishing the supported scope of electricity production by the Ministry of Energy, market participants, the power equipment of who are connected to transfer or distribution networks and who use and/or operate power energy generating equipment in their local networks for their own needs, obligation of transfer system or distribution networks’ operators to declare the services of generated power energy quantity and to pay for all public interest compatible services.

          

          It is worth mentioning that the Proceedings also establish the requirements of payment for public interest compatible services to power energy producers – legal or natural persons holding power energy generation licences, producing electricity and using it in their own territory or for the needs of their undertakings or supplying power energy to legal or natural persons established in their territory.

          

          Order No 1-214 of 24 November 2009 of the Minister of Energy on Settling the List of Public Interest Compatible Services in Power Energy Sector (Official Gazette (Valstybės žinios), No 140–6158).

          

          In order to implement Paragraph 3 of Article 5 of the Law on Electricity of the Republic of Lithuania, and the powers delegated to the Ministry of Energy of the Republic of Lithuania to approve the list of public interest compatible services granted by Paragraph 1.1.11 of the Resolution No 1462 of 22 November 2004 of the Government of the Republic of Lithuania on Delegation of Powers under the Law on Electricity of the Republic of Lithuania, this Order established public interests compatible groups in electricity sector. Such services are the following: (i) electricity generation; (ii) safety assurance of nuclear energy labour, waste storage and final disposal; (iii) electricity generation equipment, wind, biomass, sun and hydroenergy equipment used for electricity generation in connection to transfer and power distribution networks.

          

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