The Lithuanian energy minister, Jaroslav Neverovic, said the accusations of Estonian energy companies against the Latvia and Lithuania electricity markets do not hold water.
Eesti Energia recently threatened to leave the pan-Baltic market, citing foul play as Latvian and Lithuanian electricity sellers are withholding major portions of supply from the exchange, reported ETV.
Neverovic said: "It shouldn't be blaming someone that the price has incresed due to market forces. We admit that it is possible for Estonia to produce electricity at more competitive prices than it is possible in Latvia and Lithuania. So in combination with limitation of transmission capacity and limited operation of some of the generators in the area we have such developments on the market on the electricity price."
He continued: "We should maybe talk about how to minimize such volatility and how to improve the system before we are fully interconnected with Sweden, Finland and Poland, but I don't think that blaming is the most effective way to address the problems [...] I am sure that we are not breaking any rules."
Meanwhile, Eesti Energia said it does not plan to leave the Lithuanian market, but that it has discontinued new fixed rate contracts with Lithuanian clients.
Eesti Energia regulative relations director Andres Tropp said that the current transmission capacity division between the Baltic countries and a lack of risk management instruments do not enable Eesti Energia to continue in that area. "For this reason we believe it is important to hold off until these necessary changes are implement before we begin offering new contracts to Lithuanian customers," Tropp said.