Law on electricity (No. VIII–1881).

This Law establishes the legal framework for the state management, regulation, supervision and control of the electricity sector of the Republic of Lithuania and the organization of activities in the electricity sector, and also regulates the mutual relations between electricity consumers, electricity market participants, network operators and institutions exercising state regulation, supervision and control of the electricity sector in the areas of activity, protection of personal data and privacy, and ensuring consumer rights and legitimate interests. The main objectives of this Law are: (a) to ensure the safe and reliable operation of the electricity system, the generation, transmission, distribution and supply of electricity; (b) to establish the rights and obligations of participants in the electricity sector and the legal basis for their mutual relations; (c) to create legal conditions for the operation of a competitive electricity market, to establish the principles of fair competition between market participants; (d) to ensure the independence of electricity transmission activities and distribution activities and their effective separation from the commercial interests of other types of electricity sector activities, 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 consumers, the implementation of the right to information and effective remedies; (f) to promote the development of the internal electricity market, market integration, modernize technical market implementation measures, ensure clear and transparent pricing; (g) to ensure and promote the efficiency of electricity generation, transmission, distribution and consumption; (h) to create appropriate conditions for investments in the electricity sector; (i) to establish the legal framework for services in the public interest and objectively justified, clear and transparent requirements and obligations in the electricity sector; (j) to establish the legal framework for cooperation between the national energy sector regulatory authority and the transmission system operator at regional and European Union level; and (k) to establish the main legal framework for the prevention of, preparation for and management of crises in the electricity sector. The Law consists of 13 Chapters divided into 47 articles dealing with the following matters: general provisions (Chapt. 1, arts. 1 - 3); regulation in the electricity sector (Chapt. 2, arts. 4 – 6); organizational principles (Chapt. 3, arts. 7 – 12); generation of electricity (Chapt. 4, arts. 13 and 14); transmission of electricity (Chapt. 5, arts. 15 and 16); distribution of electricity (Chapt. 6, arts. 17 and 18); electricity supply (Chapt. 7, arts. 19 -25); transparency and accounting (Chapt. 8, arts. 26 – 28); electricity market (Chapt. 9, arts. 29 – 34); interruption of and restriction on delivery of electricity; technical and safety requirements (Chapt. 10, arts. 35 – 37); public interests in the electricity sector (Chapt. 11, arts. 38 and 39); state supervision, dispute settlement and liability (Chapt. 12, arts. 40 – 45); final provisions (Chapt. 13, arts. 46 and 47). The electricity sector is regulated by: (i) the Government or a body authorised by it; (ii) the State Control Commission for Prices and Energy. The electricity sector comprises electricity producers, suppliers, transmission and distribution undertakings, the market operator, and operators of the transmission and distribution networks. The following activities are subject to licensing: (a) activities of the electricity market operator; (b) electricity transmission; (c) electricity distribution; (d) electricity supply. Licensing terms and conditions envisage: (a) safety and reliability of electricity, facilities and related installations; (b) protection of the environment; (c) land use and siting; (d) the type of fuel. All producers and supply undertakings of electricity shall have the right to supply their divisions, subsidiaries and eligible customers through a direct line. The State Control Commission for Prices and Energy may impose sanctions for the following: (a) an unlicensed activity and activity without an appropriate authorisation or non-compliance with the requirements specified in the licence or authorisation; (b) failure to fulfil public service obligations; (c) a refusal to provide transportation of electricity services without objective reasons.