Lithuanian Parliament Approves Changes to Electricity Settlement for Producing Consumers

The Lithuanian parliament has passed amendments to the electricity law, preserving the dual accounting system for "producing consumers" – individuals and entities that generate their own electricity. This system allows them to store electricity produced during summer for use in winter, a crucial aspect for their energy independence.

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By ensuring the legitimate expectations of producing consumers, we must maintain the current dual accounting system – the ability for producing consumers to 'save' electricity produced in the summer for the winter.

"By ensuring the legitimate expectations of producing consumers, we must maintain the current dual accounting system – the ability for producing consumers to 'save' electricity produced in the summer for the winter," stated Žygimantas Vaičiūnas, acting Minister of Energy. He emphasized that with 193,000 producing consumers already registered, these changes are vital for their sustainable development, fostering trust in the system, and maintaining electricity market balance.

The amendments introduce a cost-sharing model for the dual accounting service. Electricity suppliers will provide this service as a public interest activity, funded by a price paid by producing consumers (not exceeding 1 cent per kWh supplied to the grid) and a contribution from all other electricity consumers, based on the benefit they derive from producing consumers' contribution to the grid (not exceeding 0.3 cents per kWh). These cost-sharing components will be implemented starting in 2027.

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Today we already have 193,000 producing consumers, so changes were necessary for their further sustainable development.

Furthermore, the new legislation caps the monthly subscription fees that independent electricity suppliers can charge residents at 2 euros. This move aims to manage rising costs for consumers. The amendments also ensure that producing consumers receiving guaranteed supply will cover the operational costs associated with this guaranteed supply when they draw electricity from the guaranteed supplier. A uniform compensation method for accumulated but unused electricity, calculated based on a weighted average of exchange prices, will also be established.

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The Seimas decisions preserve the important dual accounting model for producing consumers, while also establishing a clear and balanced cost-sharing order among all market participants.