Enefit will appeal to the Supreme Court: it complains that the requirement not to apply penalties will cost 51 million. euros | Business

The company will apply to the Supreme Court of Lithuania, asking the court to evaluate the legal regulation and the inconsistent actions of the supervisory authority. The court will also be asked to refer to the EU Court of Justice for a proper interpretation of the EU directive.

“We made a decision to apply to the Supreme Court of Lithuania in order to have the court assess not only the legal regulation, but also the inconsistent actions of the Ministry of Energy and Energy in interpreting the law. Businesses and consumers should trust the existing regulation, so until now we have relied on the interpretations of the responsible authorities regarding the application of legislation.

In the face of the energy crisis, this allowed both private and business customers to offer long-term electricity supply contracts at the best price on the market and at the same time invest in the development of renewable energy. Unfortunately, the unstable regulatory environment and the especially intensified political position before the elections brought not only confusion to the market, but also generates direct losses for market participants every day,” says Vytenis Koryzna, head of Enefit.

Such losses are caused by the termination of valid long-term customer contracts earlier than the end date specified in the contracts. Customers chose such contracts at high electricity prices in order to manage the risks of future electricity price growth. If part of the customers refuse these obligations and the electricity supplier does not anticipate the electricity reservation and price fixing costs, the company suffers direct losses, which were also informed to VERT.

Last month, Enefit adapted 100 percent of the electricity supply to residents with long-term electricity supply plans. discount for the reservation fee stipulated in the contracts. The solution is adapted to all Enefit’s private customers who have concluded long-term contracts of 6 and 7 years until 2023. June 1

“We take the position that, as provided for by the Lithuanian Civil Code and not contradicting EU law, we have the right to demand at least direct compensation for business customers after premature termination of electricity supply contracts. Especially knowing clearly that such losses are caused by insurance measures purchased by the supplier, which protect customers from the risk of price fluctuations, and because we have to sell unused customer quantities back to the market at much lower prices. We will also seek to have the Court of Justice of the European Union evaluate the situation in Lithuania, according to its competence,” says V. Koryzna.

According to V. Koryzna, if the Lithuanian courts decide that the fees stipulated in the contracts could not be applied to Enefit’s customers, the company will seek compensation for the resulting losses from the responsible institutions that caused confusion, which basically misled the participants of the electricity supply market by making irresponsible assessments and providing misleading conclusions about Lithuania Compatibility of the Law on Electricity of the Republic and EU directives with Enefit’s contractual conditions.

In this type of contract, which was chosen by Enefit’s business clients, both according to commercial practice and based on the principle of good faith in the performance of contracts, the parties are obliged to compensate for direct losses caused by early termination of the contract. It is important that the contracts were concluded and discussed by two business entities, and the consequences of the termination of the contract were known to the customers in advance. Such practices and contractual conditions are common and applicable in Latvia, Estonia and other European Union countries.

In order to contribute to the solution of the problems created by state institutions, Enefit has been providing services to all household users since April of last year, and from 2023. June and small and very small companies no longer have any fees for termination or change of electricity supply contracts.

Such restrictions have never been applied to short-term household consumer contracts (from 3 to 24 months). The only exception is the reservation fee provided for in long-term – 6 and 7-year – fixed-price contracts, the conditions of which, until January of this year, VERT evaluated in written responses as meeting the requirements of legal acts.

According to the head of the company, despite the situation, the company continues to adhere to its obligations to developers and seeks to invest in green energy solutions.