Lithuania proposes lower electricity rates for vulnerable consumers

The Lithuanian Ministry of Energy is proposing to maintain a 4-cent (including VAT) price advantage for vulnerable electricity consumers compared to standard public supply rates. This measure is intended to run from January 2025 through June 30, 2027.

To fund this reduction, the government plans to utilize surplus revenues collected from electricity producers during the 2022–2023 energy crisis. The Ministry estimates that approximately 4.237 million euros will be required for the first half of next year, representing about 30 percent of the accumulated surplus. This approach aims to alleviate the financial burden on vulnerable households without requiring additional state budget allocations.

The energy supplier Ignitis will compensate for the remaining portion of the lower tariff through its long-term power purchase agreements (PPA). The total estimated surplus from producers, including interest, is approximately 14.255 million euros. While current projections suggest these funds could cover the program until mid-2028, the Ministry noted that the sustainability of the measure depends on the growing number of consumers qualifying as vulnerable.