Energy reform hastens

VILNIUS — As part of the reforms that will revolutionize the Baltic energy market, the three countries have decided to bring forward plans two years and join their electricity markets in January.

The Baltic energy systems have been fragmented and counter-competitive since independence, leaving energy users at the whims of monopolistic energy companies. The three prime ministers got together to sign the document in Vilnius that sought to open up the energy market to force prices down for consumers.

The electricity exchange market operators have agreed to organize themselves into a common market. The common market approach will be used with the Nordic power exchange NordPool trading platform, Estonian operator Elering reported.

Though the plan officially says the plan should be enacted by the end of 2013, a common cable linking the three states to Finland via an underwater cable, will be finished by 2011. Soon after, cables to Poland and Sweden will be ready with the help of EU funds.

On the market, transactions will be made daily for sales and purchases between the three countries.

The market will be particularly important for Lithuania, which at the start of this year lost its main source of electricity production, the Ignalina nuclear power plant. Since then it has committed to buying 10 percent of its electricity from Estonia, which is self sufficient.

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