VERT: ESO could face sanctions if investigation finds improper conduct

Lithuania’s energy regulator says the country’s electricity distribution operator could face financial penalties if an investigation finds that it handled preparations for a major storm improperly.

The State Energy Regulatory Council, known as VERT, began the inspection this week. Its review will cover more than ESO’s readiness before the storm. Investigators will also examine how the company organized the removal of damage and restored services.

VERT plans to assess information submitted by ESO and question contractors and other organizations involved in the recovery effort. It will also review the performance of control systems and automation integrated into the electricity network, including whether damage to network components occurred again in the same locations. The regulator expects the complex inspection to take about four to seven months.

Residents do not need to contact VERT about compensation for lengthy power outages. ESO will pay those compensations, and customers should direct payment-related questions to the company. Preliminary compensation estimates rose from 5 million euros to about 6 million after updated data showed which customers remained without electricity for more than 72 hours.

The Finance Ministry estimates the storm’s overall financial impact at up to 18 million euros. Network restoration costs remain estimated at about 10 million euros, while ESO plans to allocate another 2 million euros voluntarily for direct losses, including food, fuel and generators. More than 2,000 customers have already applied for direct-loss compensation.

The storm on August 22 brought down trees in many parts of Lithuania, killing one person and injuring four. At its peak, more than 268,000 ESO customers lost power, and the network recorded over 9,000 instances of damage. The government declared a national-level emergency over the storm’s effects and farmers’ losses. Insurers have registered nearly 14,000 claims, with assessed damage exceeding 13 million euros.

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If improper conduct is established, the council can impose financial sanctions and mandatory orders.