Baltic Countries Are Against Privatization of Power Engineering.

Published: 3 August 2000 y., Thursday
This year Baltic countries are trying to find a lot of questions concerning privatization of power engineering. Almost simultaneously in Lithuania, Latvia and Estonia, where the parties of the right wing remain in power, the adjustments to sale of the certain enterprises -Lietuvos energija, Latvenergo and Eesti energia, has begun.

In Latvia opposition is against the intention to sell Latvenergo; two parties have collected 307 thousands signatures. This means if coalition insists, the next stage will be referendum the results of which may be logically predicted. The privatization turned to be unpopular; even for the coalition it was very unexpected. Rating of the main privatizing person A.Shkele, the leader of the party, has fallen almost to zero. But the popularity of the left wing has sharply risen.

As a result the ruling majority has changed the law on power engineering so that Latvenergo is eliminated from the list of enterprises that may be privatized. Here the law meets the requirements of the opposition. In fact, this means not only refusal of privatization but of the association with Eesti energija in which both parts were engaged since this spring. Latvian reviewers stress that this is the first time opinion of society turned to be more influential than the wants of the ruling parties. And now they are trying to explain that their attention was towards this, too, that they simply were “incorrectly understood.”

In Estonia 49% of the shares of the most powerful power stations, which produce more than 90% of electric power in the country, may be sold to the American power company NRG Energy Inc.

Just as in Latvia, opposition in Estonia was not silent, too. According to it, giving power engineering to one owner will lead to increase in prices. So last week it organized mass meeting near the Toompea castle in Tallinn. The opposition has even begun talks with the Latvian opposition offering it to create a kind of common front against the American invasion into Baltic power engineering.

Something like this occurs in Lithuania today. Here the ruling coalition tried to force privatization of Lietuvos energija. Restructure of Lietuvos energija began last year. Its further division and privatization is foreseen in strategy of power engineering development accepted this year.

It’s unlikely that during the period left till the elections the right wing will be able to take serious steps concerning restructure. And the left wing, according to all the signs, position of which will become stronger claim they won’t let power system to be sold. They claim experience with privatization of telecom is a good example. After two Scandinavian companies became the owners of telecom they regularly increase tariffs though their incomes overhead set trends. They are also expected to make changes in the scheme of restructure.

By the way ,according to the unofficial data, it’s because Lithuanians didn’t coordinate their plans with the neighbors, Latvians and Estonians have ignored Lithuania in aspiration for integrating into unique Baltic power system.
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

The most popular articles

Financial sector: preventing the next crisis

New legislation for pan-European supervision of credit rating agencies and a public debate on how financial institutions are managed. more »

Russia's accession to WTO and China's role in world economy were discussed in Vilnius

On 2 June in Vilnius, Lithuania‘s Vice-Minister of Foreign Affairs Asta Skaisgirytė Liauškienė and Deputy Director General of the World Trade Organization Rufus H. Yerxa discussed the main issues on the international trade policy agenda, Russia‘s WTO accession and the changing role of China in the world economy. more »

Globalisation fund: Budgets Committee backs aid to Spain and Ireland

2157 former construction workers in Spain and 598 ex-employees at the Irish crystal glass company Waterford Crystal with suppliers could get €11 million in EU globalisation adjustment fund aid for training, self-employment and professional orientation under plans approved by the Budgets Committee on Wednesday. more »

Commission rewards Europe's best green businesses

Companies from the UK, Belgium, Germany and Spain have won the 2010 European Business Awards for the Environment. more »

Fisheries reform: firm backing for research but differing views on quotas

The planned overhaul of EU fisheries policy should devolve more powers to regions, protect small coastal fleets and boost aquaculture, said MEPs and members of national parliaments on Tuesday. more »

First JESSICA fund loan agreement signed with Lithuania’s Šiaulių bankas

The first in a series of loan agreements for energy efficiency investments in multi-apartment buildings was signed today between the European Investment Bank (EIB), as manager of the JESSICA holding fund in Lithuania, and Šiaulių bankas. more »

Estonia's euro

Despite the current economic crisis and tensions in the euro, Estonia is set to adopt the single currency in January. more »

'Polluter pays' principle for banks

Commission proposes a bank tax to cover the costs of winding down banks that go bust. more »

Strong EIB support for new energy investments in Greece

The European Investment Bank will provide a total of EUR 400 million to Hellenic Petroleum SA in order to increase the production of cleaner fuels via the upgrading of the Elefsina refinery. more »

The promotion of the electric vehicle in Europe, under examination

European ministers meet on Tuesday and Wednesday in Brussels at the final Competitiveness Council to be held during the six months of the Spanish Presidency, which has an agenda laden with important issues such as the electric vehicle, the European patent system and national R+D investment goals. more »