Implementation of 3 rd Energy Package: latest developments in Lithuania 1 Kęstutis Žilėnas Ministry of Energy, Lithuania 11 th Baltic Electricity Market Mini-Forum Jurmala, Latvia, 1 st October, 2010

3 rd Energy Package Directives (1/4)  Adopted by the European Parliament and the Council: 13 July, 2009  Deadline to transpose Directives to the national law: 3 March, 2011  Deadline for implementation: 3 March, 2012 Precondition to:  succeed with strategic energy infrastructure;  ensure functioning EU internal market.

3 rd Energy Package Directives (2/4) Lithuania’s choice: first alternative – ownership unbundling  4-th May, 2010 – Framework concept for amendment of the Law on Electricity;  19-th May, 2010 – Framework concept for amendment of the Law on Natural Gas;  both Framework concepts:  foresee implementation of the Energy package Directives according to the first alternative, namely the ownership unbundling of the respective transmission systems;  set the guidelines how the amendments to the laws should be drafted, foresees basic principles and sections of the future laws.

3 rd Energy Package Directives (3/4) Most important principles of the implementation process:  a high level of public participation in the ongoing drafting process;  the Government and the Ministry seek a close and effective cooperation with the stake holders to:  achieve the optimal working solutions for the sector;  strictly abide to the EU law;  the main stake holders in the respective sectors are invited to participate in the working groups on the drafting of the laws;  Ministry seeks to timely finish all the preparatory steps so that the Parliament would be submitted the drafts in this autumn at the latest.

3 rd Energy Package Directives (4/4) Current and Future Steps:  Drafting legislation: preparation the draft laws [June – August 2010];  Public consultation: public consultation rounds shall take place [August – September 2010];  Adoption of proposals and submission to the Parliament: draft proposals are going to be adopted by Government and submitted to the Parliament [September – October 2010];  Adoption of legislative proposals and secondary legislation: is estimated [for the end of 2010 – beginning of 2011]; and in any case so that the national provisions would enter into force within the period prescribed by the directive.

Strengthening of the Regulatory Authority Establishment of the Infrastructure Regulatory Authority (IRA)  Merger of 3 regulatory institutions into the IRA should ensure:  independent and strong regulatory authority;  uniform regulatory principles among energy sectors;  stable regulatory environment for the investments;  effective protection of the consumer rights.  Framework concept for IRA [28 April, 2010];  Draft of the necessary Laws have been prepared by the Ministry and approved by the Government [22 September, 2010];  Adoption of legislative proposals by the Parliament [by the end of 2010].

Vision – 2020  Interconnected, integrated and competitive electricity market with steadily increasing and relevant generation from renewable and nuclear;  Functioning regional natural gas market with diversified supply;

Thank You for Your attention! 8