The Lithuanian Energy Ministry has proposed that the government end subsidising electricity prices for households, but extend subsidies for natural gas in order to keep the tariffs at their current levels, Renatas Pocius, chairman of the National Energy Regulatory Council (VERT), said on Wednesday.
The Energy Ministry has said that it suggests partially covering natural gas bills for household consumers in the second half of the year, but scraping subsidies for electricity prices, a move that has yet to be approved by the cabinet.
“Electricity is unlikely to require subsidising,” Pocius told the parliamentary Committee on Economy. “We have just received a draft [resolution] from the Energy Ministry on the need for subsidising [energy] and it does not provide for any subsidies for the electricity sector.”
Gas prices will remain high and in need of subsidies for household consumers, according to the official.
For households that use gas for heating, the price in the second half of 2023 may be 1.57 euros per cubic metre, according to Pocius.
However, if the government subsidies part of the price, households would pay 0.91 euros.
The subsidy would be in place until the end of 2023 and require almost 54.5 million euros.
In the first half of this year, the government is covering up to 0.285 euro per kilowatt-hour (kWh) of electricity and 0.99 per cubic metre of gas for households.
The threshold below which the cost of electricity is not subsidised is set at 0.28 euro.
Newsletter
Every Friday morning.
