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Kubilius threatens to sack Leo LT management

  • 2008-12-19
  • TBT Staff in cooperation with BNS
VILNIUS - Lithuanian Prime Minister Andrius Kubilius has threatened to replace the management of Leo LT, the national energy company, if it does not comply with the government's wishes not to raise the rates on services.

"Decisions on essential strategic questions are taken by shareholders inany business. Irrespective of whether it is large or smaller business, orbusiness, in which a large stake is controlled by the state. If theadministration of such business disagrees with that, shareholders have todecide what to do with the administration. It is not for the administrationto decide what to do with shareholders," Kubilius told journalists.

Meanwhile, Ignas Staskevicius, CEO of privately-owned NDX Energija, whichalso owns a stake in Leo LT, told the reporters that the shareholders shouldnot interfere in pricing matters, which should be settled by the boards ofenergy companies and the prices watchdog.

"As a representative of NDX Energija, which is a minority shareholder ofLeo LT, I do not make any evaluations of the questions related with prices.I think that we, as shareholders, should not be involved in thedetermination of electricity prices," he said.

In Staskevicius' opinion, the situation of the government was rathercomplicated in this case since the state was the shareholder of Leo LT andthe regulator of energy sector, too.

The Economy Ministry has asked Leo LT to leave the rates of servicesrendered by Lietuvos Energija, VST and RST unchanged, in which case theprices of electricity for households would only increase by 3 cents per 1kWh.

The government and NDX Energija own 61.7 percent and 38.3 percent of LeoLT, respectively.