Kubilius threatens to sack Leo LT management

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 in any business. Irrespective of whether it is large or smaller business, or business, in which a large stake is controlled by the state. If the administration of such business disagrees with that, shareholders have to decide what to do with the administration. It is not for the administration to decide what to do with shareholders," Kubilius told journalists.

Meanwhile, Ignas Staskevicius, CEO of privately-owned NDX Energija, which also owns a stake in Leo LT, told the reporters that the shareholders should not interfere in pricing matters, which should be settled by the boards of energy companies and the prices watchdog.

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

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

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

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