TIME IS MONEY: The national energy company, which has been criticized for monopolistic policies, said it needed more time to restructure.
VILNIUS - The group investigating the establishment and reorganization of national energy company Leo LT has asked the Cabinet for another three months for the task 's an extension that President-elect Dalia Grybauskaite said she wouldn't give to the group.
Mykolas Majauskas, economic matters adviser to the prime minister, said the findings of the group were important and needed time.
"The working group set up by the prime minister said there hasn't been enough time to review it. Clearly the Constitutional Court has brought this up and they need more time to look completely and do due diligence, analyze documents and do in depth analysis," he told TBT.
The national energy company needs to be reorganized to comply with European Union anti-monopoly laws in the energy sector.
According to Energy Minister Arvydas Sekmokas, who heads the group, "the group would assess the establishment of Leo LT, proportions of contributions and the further activities of Leo LT considering the requirements of the third package," over the three months.
The third energy package drawn up by the European Commission concerns the participation of separate producers in the market, and regulation of the monopolies selling and distributing energy.
Sekmokas said these companies would only "carry out the transportation," of energy and the sale of electricity would be "completely separated," from LEO LT.
Leo LT is 61.7 percent owned by the Lithuanian state and 38.3 owned privately by NDX Energija, a subsidiary of VP Group, which has a large stake in the Western distribution grid and an indirect share in the Eastern grid.
Under the current set up, NDX Energija would partly own the power production facilities being built and the distribution grids used to transfer electricity.
The third energy package requires the different parts of the energy delivery system to be independent and separate.
According to Prime Minister Andrius Kubilius, a hasty reorganization of Leo LT would harm the country. Meanwhile, NDX Energija would receive significant financial benefit.
Leo LT was formed under the previous Gediminas Kirkilas-led government, but was found earlier this year to be unconstitutionally founded.
Despite this the company was not broken up, with Kubilius citing potential payouts to the private owners of the company that would cost the taxpayer "billions of litas."
The prime minister approves of the prolongation of the activities of the working group. President-elect Grybauskaite, however, said she has "no three months" to wait for the more in-depth conclusions.
The future head of state, who takes office on July 12, stressed during her election campaign that Leo LT was harmful for Lithuania and promised to dissolve this company if elected.
