Once the network operators gave permission to import more electricity from Russia, the price of electricity throughout the week decreased and approximated to the Nordic ones

According to AB “INTER RAO Lietuva”, once the network operators, who for quite a long period of time have been artificially restricting electricity imports from third countries, gave their permission to import more electricity from Russia, the price of electricity in Lithuania and Latvia within the week dropped, on Sunday it even levelled the ones in the Baltic States, and, finally, approximated to the prices in the Nordic countries.

“Network operators have made it possible to import a deficient amount of electricity from third parties; therefore, a pronounced tendency in electricity market was observed during the last week: the price of electricity on the power exchange has been declining on a daily basis, and on Monday it amounted to 13.5 Lithuanian cents per 1 kWh. We do believe that network operators’ decisions, which resulted in a downward pressure on prices and were particularly favourable to the clients, will remain long-term, and further activities of network operators will be directed towards the promotion of competition and the increase of transparency in the energy sector, rather than the restriction of competition and the creation of artificial barriers,” says Vidas Čebatariūnas, the Director of Commerce of AB “INTER RAO Lietuva”.

Last Monday the price for 1 kWh of electricity in the Lithuanian and Latvian zone NordPoolSpot reached 19.6 cents, on Tuesday and Wednesday it decreased to 17–16.7 cents, on Thursday it declined to 16.6 cents, while on Friday and Saturday it dropped even more to 14.3–14.2 cents. Finally, on Sunday the price of electricity kept declining until it approximated to the Nordic ones, and equated with 14.1 cents per 1 kWh—the price of electricity purchased in the Estonian zone NordPoolSpot by the market players.

Today (Monday) the electricity price has declined even more by reaching 13.6 cents per 1 kWh in Lithuania and Latvia, and 12.2 cents for 1 kWh in Estonia.

Please note that the equalization of electricity prices in different NordPoolSpot zones will only be possible upon the full completion of power connection construction between Lithuania and Sweden (NordBalt).

Please be advised that due to the network operators’ actions on the artificial restriction of competition and imports, that caused a lot of troubles to the independent electricity suppliers, the price of electricity in the Lithuanian and Latvian zone NordPoolSpot rapidly grew throughout the III quarter of this year, and in October it reached the all-time-highs. In October the difference between the price paid for electricity in Lithuania and Estonia has increased tremendously. Energy companies operating in Estonia were the key beneficiaries from the situation who have been reporting lately about a particularly successful III quarter of the year as well as an extremely good company performance. The profit from this difference covered by the Lithuanian electricity suppliers has been attributed to the Estonian and Latvian system operators, too.

Back in early October, AB “INTER RAO Lietuva” has notified that in the event of power supply deficit and its unprecedented heights in the market, the company could have provided the lack of electricity; however, it was prevented from acting this way by the agreements between the three Baltic States’ operators.