Mar 2 • 09:36 UTC 🇱🇹 Lithuania Lrytas

Ž. Vaičiūnas spoke about the new tax: says it won’t have significant negative impacts

Lithuanian Energy Minister Ž. Vaičiūnas reassured that a proposed new tax on electricity from self-generating consumers will have minimal impact.

Lithuanian Energy Minister Ž. Vaičiūnas addressed concerns regarding a new proposed tax aimed at consumers generating their own electricity. The government has suggested implementing an additional charge of up to 0.01 euros (excluding VAT) for each kilowatt-hour (kWh) supplied to the grid, which could vary based on the final data regarding the costs incurred by these producers. This change aims to maintain the existing net-metering system instead of transitioning to a net-billing model, which some believed could overly burden self-generating consumers.

During a meeting with the Homeland Union–Lithuanian Christian Democrats faction, Vaičiūnas assured that these changes would not significantly negatively impact the self-generating consumers. He's collaborated with analysts from the National Energy Regulatory Council (VERT) to conclude that the influence on producers will be minimal. This statement is intended to alleviate fears that the new tax scheme could disrupt the economic dynamics for those generating electricity for personal use or resale.

Furthermore, the minister pointed out that this so-called 'preservation tax' could potentially increase by about 0.7 cents per kWh, a figure he suggests is manageable and necessary to ensure the continuation of the current energy billing system. This regulatory approach is part of a broader strategy to balance consumer needs while maintaining a stable energy market in Lithuania, reflecting ongoing efforts to adapt to changing energy production landscapes.

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