Lithuanian electricity transmission system operator Litgrid is announcing a public consultation on a new option for electricity consumers connected to the transmission network to choose a dynamic tariff. With the rapid growth of renewable electricity production, Litgrid is promoting system flexibility and creating an incentive for consumers to respond to changes in electricity prices. Higher electricity consumption during periods of low prices and lower consumption during periods of high prices would contribute to better market conditions for both producers and consumers.
“The currently applied fixed tariff for consumers connected to the transmission network does not reflect well the trends of the Lithuanian electricity transmission system and the electricity market. If consumers choose dynamic taxation, the benefits would be mutual. From the Litgrid side, we would optimally use the available infrastructure, encourage consumption and enable even greater development of renewable resources. From the consumer side, there would be an opportunity to save during periods of low prices. During the public consultation, we are waiting for consumer input and comments in developing a mutually beneficial dynamic tariff pricing,” says Donatas Matelionis, Head of the System Management Department at Litgrid.
The purpose of the dynamic tariff is to change the behavior of large electricity consumers depending on the situation in the electricity market. This is an additional incentive to use electricity when it is more economically beneficial for consumers and the entire electricity transmission system. The dynamic tariff will create conditions for more efficient use of electricity networks, increase system flexibility and contribute to the development of renewable energy.
All electricity consumers connected to the transmission network will be able to choose dynamic tariff measures. The proposed measures include the components of the transmission tariff for energy, transmission tariff for power and the purchase of additional services.
The dynamic tariff concept presented during the public consultation proposes that the choice of the energy component and the additional services acquisition component to the transmission service price is voluntary and independent of each other – by choosing to operate flexibly according to energy exchange prices, the consumer would not be obliged to ensure direct management from Litgrid.
It is proposed to link the energy component of the tariff to the electricity price on the day-ahead market, thus encouraging electricity consumption during periods of low prices and reducing the need for electricity when electricity generation is lacking.
It is proposed to differentiate the additional services acquisition component to the transmission service price according to Litgrid’s ability to manage consumer devices. Such an option would reduce system management costs and would be used only during emergency system operation modes.
It is proposed to apply the power component of the tariff paid by all consumers from the permitted power consumption, thus equalizing conditions between existing and new consumers and ensuring more efficient network utilization and planning.
The adoption of the legal acts necessary to implement the dynamic tariff concept is planned by July 2026, and practical application – from the beginning of the new regulatory period: January 1, 2027.
