The European Commission has opened an in-depth investigation to assess whether Lithuanian support to energy company AB Lietuvos Energija in the context of a strategic reserve measure, which was in place in Lithuania until 2018, may have unduly favoured the company and distorted competition in the Single Market, in breach of EU State aid rules.
From 2013 to 2018 (when the scheme was discontinued), the Lithuanian Power Plant (LPP), owned by AB Lietuvos Energija, Lithuania’s state-owned incumbent, was selected by the Lithuanian government to provide strategic reserve services with the intention of increasing security of electricity supply in Lithuania. LPP was paid for the provision of these services.
In 2016, the Commission received a formal complaint alleging that the measure was incompatible with EU State aid rules. At this stage, the Commission is concerned that the measure may not have been in line with EU State aid rules.
The Commission will now investigate further to determine whether its initial concerns are confirmed. The opening of an in-depth investigation gives Lithuania and interested third parties an opportunity to submit comments. It does not prejudge the outcome of the investigation.