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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure LT-2022-27/2898 – measures in Lithuania

Compensating households for price increases of electricity and natural gas

Elektros energijos ir gamtinių dujų kainų augimo kompensavimas gyventojams

Country Lithuania , applies nationwide
Time period Temporary, 01 July 2022 – 31 December 2022
Context War in Ukraine
Type Legislations or other statutory regulations
Category Responses to inflation
– Support for energy bills
Author Inga Blaziene (Lithuanian Social Research Centre) and Eurofound
Measure added 15 September 2022 (updated 20 September 2022)

Background information

On 12 May 2022, the Seimas of the Republic of Lithuania adopted amendments to the Law on Energy of the Republic of Lithuania (No. IX-884), the Law on Natural Gas of the Republic of Lithuania (No. VIII-1973) and the Law on Electricity of the Republic of Lithuania (No. VIII-1881), providing for partial compensation to households for the increase in electricity and natural gas prices in the country. These amendments to the laws are aimed at reducing the energy costs of the population by at least partially compensating them for the significant increase in electricity and natural gas prices. A detailed procedure for the partial compensation of prices for electricity and/or natural gas was approved by Resolution No. 553 of the Government of the Republic of Lithuania of 30 May 2022.

Content of measure

The compensation procedure approved on 30 May 2022 provides for compensation to households of up to 9 cents per kilowatt-hour (kWh) for electricity and 54 cents per cubic metre for gas from 1 July to 31 December 2022. The minimum standard electricity tariff below which the cost of electricity will not be compensated will be 24 cents per kWh. It is also foreseen that the State will partially compensate for the cost of the surcharge on the price for electricity transmission. The amount of the compensation will be 13.90 cents per kWh.

The amendments to the laws provide for support for all consumers, whether they buy their electricity from public or independent suppliers, as well as for consumers of guaranteed electricity supply.

The partial compensation will apply automatically to all residents. This measure will ensure that electricity and gas tariffs for households will not increase by more than 40-50% (instead of 200-300%).

According to the Ministry of Energy (ME) of the Republic of Lithuania, €570 million will be allocated to compensate households for electricity and gas prices, of which €190 million to compensate for the increase in gas prices and €380 million - for electricity prices.

Use of measure

Unknown.

Target groups

Workers Businesses Citizens
Does not apply to workers Does not apply to businesses Applies to all citizens

Actors and funding

Actors Funding
National government
Public support service providers
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Informed Informed
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: Peak or cross-sectoral level

Involvement

No information available.

Views and reactions

No information available.

Sources

  • 12 May 2022: Amendments to the Law on Energy of the Republic of Lithuania No IX-884 (www.e-tar.lt)
  • 12 May 2022: Amendments to the Law on Natural Gas of the Republic of Lithuania No VIII-1973 (www.e-tar.lt)
  • 12 May 2022: Amendments to the Law on Electricity of the Republic of Lithuania No VIII-1881 (www.e-tar.lt)
  • 12 May 2022: Seimas approves compensation of part of the cost of gas and electricity for households (enmin.lrv.lt)
  • 30 May 2022: Procedure for partial compensation for electricity and/or natural gas prices (e-seimas.lrs.lt)

Citation

Eurofound (2022), Compensating households for price increases of electricity and natural gas, measure LT-2022-27/2898 (measures in Lithuania), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LT-2022-27_2898.html

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