UPDATES ON THE LATEST DEVELOPMENTS IN LITHUANIA Aistija Zubaviciute NCC, Lithuania 11 th Baltic Electricity Market Mini-Forum 1 st October 2010

PRIMARY LEGISLATION A mendments of the Law on Electricity under preparation Foreseen main changes: additional functions for the Regulator and implementation of the 3rd Energy Package

SECONDARY LEGISLATION Approved: – Amendments of the Methodologies for calculation of the public prices and T&D price caps according to the Law on Electricity – Market Monitoring Rules To be approved: – CHPP price calculation rules – Public service obligation price calculation methodology – Connection fees calculation methodology – Information submission rules – Balancing price calculation rules (?) – Renewable price calculation methodology – Market price calculation methodology

MARKET DEVELOPMENT Officially ~35% of electricity consumption (400 kW customers) - no end-user price ~29% real market opening in August More than 1300 customers buy electricity by the non- regulated prices 23 new licenses of Independent Suppliers (IS) from the beginning of 2010 Currently 16 active IS of 53 licensed IS

PEX PRICE 02-08/2010

CURRENT WORKS Prices for 2011 – Prices for G and S, having 25% of sale market. 25% of: G – 2509,7 GWh Tertiary reserve – 70 MW Secondary emergency reserve – 50 MW Secondary regulation reserve – 30 MW Retail market – 2109,2 GWh – T&D price caps – New design of tariffs (3-4 packages depending on the consumption volume) – Amendments of the secondary acts EE-LV interconnection issue Harmonised mechanism of the interconnections capacity allocation

KEY AREAS OF WORK FOR rd package implementation 2.Security of supply and infrastructure issues 3.Affordability and consumer issues 4.Climate change, renewable energy issues and energy efficiency 5.Financial services and energy trading 6.Regional market integration 7.External relations (3 rd countries)

PRIORITIES FOR Network Codes 2.10-year network development plan 3.Cross- border congestion management 4.Monitoring of ENTSOs 5.Documents: 1.Framework Guideline on capacity allocation and congestion management – 05/ Framework Guideline on grid connection – 05/ Framework Guideline on operational security – 05/ Framework Guideline on electricity balancing – 10/ Public consultation on the assessment of the necessary ITC compensation – 12/ Monitoring of the Internal markets – 12/ Monitoring Report with a status review of the Regional Initiatives – 12/2011

THANK YOU FOR YOUR ATTENTION