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

Commission closes investigation into agreement between Bratislava Airport and Ryanair

The European Commission has today decided to close the formal investigation procedure into the agreement between Bratislava Airport in Slovakia and Ryanair after concluding that the airport operator acted as a market economy investor and therefore no advantage has been granted to Ryanair. more »

Jamaica: Agriculture Ministry and World Bank to Assess Weather-Risk Model for Coffee Industry

The coffee industry of Jamaica represents one the largest earners of foreign exchange, approximately US$30 million in 2008. more »

IMF Executive Board Concludes 2009 Article IV Consultation with Mauritius

On January 13, 2010, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Mauritius. more »

IMF and World Bank Announce US$1.6 Billion in Debt Relief to Afghanistan

The World Bank's International Development Association and the International Monetary Fund have agreed to support US$1.6 billion in debt relief for the Islamic Republic of Afghanistan. more »

New study on "Public Goods provided by Agriculture in the European Union"

The Common Agricultural Policy plays a critical role in helping farmers to deliver environmental goods and services, provided that policies are targeted in the right way. more »

Commissioner Samecki encourages Croatia to use EU investment as a launch-pad for growth

Regional Policy Commissioner Paweł Samecki will meet Croatia's Prime Minister Jadranka Kosor and members of her government in Zagreb on 25-26 January to discuss the country's preparations for accession in the context of the EU cohesion policy. more »

Dominican Republic: World Bank approves US$20 Million to Foster Local Development through Municipalities

The World Bank Board of Directors today approved US$20 million for the Dominican Republic in support of the Municipal Development Project, which aims to improve the technical and financial capacity of local governments. more »

EIB supports with EUR 400 million development of automotive sector in Romania

The European Investment Bank (EIB) is lending EUR 400 million to Ford Romania SA for the expansion and refurbishment of the company’s existing car assembly plant located in Craiova in the South-West of Romania. more »

The Agriculture Council studies ways to improve the functioning of the food supply chain

The Agriculture Council of the European Union has examined ways to improve the functioning of the food supply chain with the ultimate aim of controlling the fluctuation in prices and ensuring a more equitative distribution of the added value throughout the chain. more »

806 construction workers in Lithuania to receive help from EU Globalisation Fund

The European Commission has today approved an application from Lithuania for assistance under the Globalisation Adjustment Fund (EGF). more »