The electricity industry in Lithuania is to undergo a reorganization and part privatization under plans announced Thursday by state-controlled utility, Lietuvos Energija. The plan, to split the company up into five separate parts, will be put to a meeting of shareholders in December.
The utility will be divided into create five separate units covering generation, transmission and distribution and the assets and liabilities will be separated also.
The five units will be; Lietuvos Energija , Eastern Distribution Network, Western Distribution Network, Lietuvos Elektrine and Mazeikiai Power Plant.
The Eastern Distribution Network will link Vilnius, Panevezys, Alytus and Utena distribution networks and will have a total of 673 327 customers. The Western division will serve 649 573 customers and link Kaunas, Klaipeda and Siauliai networks.
The government will retain full control of the national grid through Lietuvos Energija but will put on the market the generation and distribution assets.
Lietuvos Energija is a joint stock company formed in 1995 in which the Lithuanian government own 86.5 per cent and Sweden’s Vattenfall own 10.1 per cent. As a country seeking accession to the EU, it is undertaking a programme of liberalization of its state monopolies.