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"Energesman" sues VAATC over contract termination, warns of cost hikes
๐Ÿ‡ฑ๐Ÿ‡น Lithuania /Energy & Infrastructure

"Energesman" sues VAATC over contract termination, warns of cost hikes

From Delfi · () Lithuanian

Translated from Lithuanian, summarized and contextualized by DistantNews.

At a glance

News Sources not specified In the courts
  • "Energesman" has filed a lawsuit challenging the termination of its contracts by VAATC and seeking to prevent VAATC from claiming guarantee payments.
  • The company argues that VAATC's actions will significantly increase waste management costs for residents, potentially doubling or tripling them.
  • "Energesman" alleges that Vilnius municipality and VAATC acted illegally, citing an interest conflict and citing VAATC's premature knowledge of unofficial decisions.

Waste management company "Energesman" has taken legal action against VAATC, challenging the termination of their contracts and seeking to halt VAATC's claims for guarantee payments totaling approximately 1.3 million Euros. The company argues that the termination will lead to a substantial increase in waste management costs for Vilnius residents, potentially doubling or tripling current prices.

Algirdas Blazgys, director of "Energesman," stated, "We seek for justice to be restored so that we can continue to manage Vilnius region's mixed municipal waste and rebuild the modern plant as stipulated in the contracts. Only then will waste management not become more expensive for residents." He warned that if VAATC cannot operate the plant as efficiently, costs will rise significantly, citing examples in other regions where municipal waste management is twice as expensive.

We seek for justice to be restored so that we can continue to manage Vilnius region's mixed municipal waste and rebuild the modern plant as stipulated in the contracts. Only then will waste management not become more expensive for residents.

โ€” Algirdas BlazgysDirector of "Energesman," explaining the company's objective in challenging the contract termination.

This lawsuit marks the first time "Energesman" has challenged the contract termination itself, having previously sought only interim protection measures. The company's lawyer, Dr. Paulius Miliauskas, partner at "Miliauskas ir Lauraitytฤ—," questions the legality of VAATC's actions, pointing out that VAATC's documents cite decisions from the Vilnius City Center for Emergency Operations (ESOC) and its head that were not yet officially adopted. He raised concerns about how VAATC could have known the content of these documents prior to their official release.

Further complicating matters, Dalius Krinickas, head of Vilnius ESOC, also sits on the VAATC board. Miliauskas highlighted this as a potential conflict of interest, given ESOC's role in impartially regulating market participants. "Energesman" contends that the plant's takeover was based on unilateral decisions by Vilnius ESOC and its head, and if the court recognizes this overreach, the entire takeover could be invalidated, potentially leading to legal repercussions for those involved.

We question how VAATC could have known the content of the document if such a document did not yet exist?

โ€” Dr. Paulius MiliauskasLawyer for "Energesman," raising concerns about VAATC's alleged premature access to official documents.
DistantNews Editorial

Originally published by Delfi in Lithuanian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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