Electricity Law (No. VIII-1881).

This Law establishes the legal bases for the state management, regulation, supervision and control of the electricity sector in the Republic of Lithuania and the organization of activities in the electricity sector, as well as regulates and supervises electricity consumers, electricity market participants, network operators and the electricity sector. It also regulates the relationship between the authorities exercising control over the activities, the protection of personal data and privacy and the safeguarding of consumers' rights and legitimate interests. The main objectives of this Law are: (a) to ensure safe and reliable operation of the electricity system, generation, transmission, distribution and supply of electricity; (b) to determine the rights and obligations of the participants of electricity sector and the legal bases for their mutual relations; (c) to establish the principles of fair competition between market participants; (d) to ensure the independence of electricity transmission and distribution activities and their effective separation from the commercial interests of other activities in the electricity sector, to create legal conditions for the reorganization of vertically integrated undertakings; (e) to establish a high level of protection of consumer rights and legitimate interests, in particular by ensuring the availability and adequacy of electricity, the protection of vulnerable customers, the exercise of the right to information and effective remedies; (f) to promote the development of the internal electricity market; (g) to ensure and promote the efficiency of electricity generation, transmission, distribution and consumption; and (h) to identify the main crisis prevention measures and preparedness of the electricity sector for such crises and creation of legal framework for management thereof. The State shall encourage the use of renewable energy sources for electricity generation and electricity consumption from renewable energy sources. The use of renewable energy resources for the production of electricity may be promoted in accordance with the procedure, conditions and to the extent established in this Law and the Law on Renewable Energy of the Republic of Lithuania. The procedure and conditions for the application of measures to promote the use of renewable energy resources shall be established by the Government in accordance with the requirements of this Law and the Law on Renewable Energy Sources. Measures to promote the use of renewable energy sources shall be applied in accordance with the principles of non-discrimination and transparency, taking into account the criteria of cost-effectiveness, minimum cost and impact on the price of electricity to final customers. The following activities shall be licensed in the electricity sector: (a) electricity transmission; (b) electricity distribution; and (c) public supply of electricity. This Law consists of XVII Sections divided into 85 Articles. Section I lays down general provisions. Section II establishes operational management in the electricity sector. Section III establishes principles for the organization of activities in the electricity sector. Section IV regards electricity generation. Section V regards transmission of electricity. Section VI regards distribution of electricity. Section VII regards electricity supply. Section VIII regards energy storage. Section IX regards consumer protection. Section X establishes the principle of transparency of accounting and regulates activities in the electricity sector. Section XI regards electricity market. Section XII establishes capacity assurance mechanism and its implementation. Section XIII regards interruption and limitation of electricity supply, technical requirements and security of electricity supply. Section XIV regards public interest in the electricity sector. Section XV regards international cooperation. Section XVI regards complaints and liability. Section XVII lays down final provisions. Electricity supplier must ensure as follows: (a) that consumers are informed and consulted and their appeals are considered in accordance with the requirements set forth in this law and other legal acts of the energy sector regulating the activities of an independent supplier; and (b) offer 12- and 24-month electricity supply fixed-price contracts to household consumers. An independent supplier may also offer fixed-price electricity supply contracts of a different duration. Household consumers, very small enterprises and small enterprises, as defined in the Law on the Development of Small and Medium-sized Businesses of the Republic of Lithuania, have the right to unilaterally terminate the contract for the purchase and sale of electricity or the contract for the provision of electricity purchase and sale and forwarding services with an independent supplier and have the right to change the independent supplier by notifying the independent supplier in writing no later than 2 weeks in advance and no later than one month from the date of receipt of the final (closing) invoice, by fully settling with the independent supplier for the electricity consumed and/or provided services. An independent supplier has the right to unilaterally reduce the price of electricity supply to household consumers. Household consumers must be informed of this intention in writing and/or by means of electronic communications. Household consumers who are guaranteed supply in accordance with the established procedure and conditions have the right to submit a request to the guaranteed electricity supplier to settle the debt for consumed electricity, including its transmission and related services and services in the public interest, in parts. On the basis of this request, the guaranteed electricity supplier and the household consumer draw up a schedule for paying off the debt for consumed electricity, including its transfer and related services and services in the public interest, in installments for a period of no longer than 6 months. A repeated request to settle the debt for the consumed electricity, including its transfer and related services and services in the public interest, can be submitted in installments only when the household consumer has settled with the guaranteed electricity supplier according to the previously established schedule for repayment of the debt in installments.