2012-12-18 09:30

Lithuanian may use PSO funds to finance major energy projects

Lithuania may use public service obligation (PSO) funds to finance important energy projects in the future, says Diana Korsakaitė, the chairwoman of the National Control Commission for Prices and Energy.
VKEKK pirmininkė Diana Korsakaitė
Diana Korsakaitė / BFL nuotr.

The weekly magazine Veidas on Monday quoted Korsakaitė as saying that electricity prices were unlikely to go down in 2014.

"The need for renewable energy subsidies will increase, but the need for funding for the NordBalt cable will decline. Certainly, it might be decided to use the PSO funds to finance the construction of the LitPol Link line. Also, there are strong chances that the PSO (funds) will have to be used to finance the closure of Ignalina Nuclear Power Plant, because the funds available for this purpose will dry up by the end of 2013," the official said.

"Therefore, we should not have much hope that electricity prices in Lithuania will go down," she said.

Korsakaitė added that electricity prices would also depend on electricity production quotas and on natural gas prices.

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