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.
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