OREANDA-NEWS. On 01 September 2009 Nord Pool Spot AS and Lietuvos Energija AB announced that they have signed a Letter of Intent to implement a new market model for the Lithuanian electricity market.

In the future the Lithuanian market will be based on the same principles as the Nordic power market, where price and flow are calculated at the same time to increase market efficiency (implicit auction). The parties aim to establish a service contract where Nord Pool Spot will provide the systems and services from the Nordic market to the Lithuanian market place.

The technical solution will be ready prior to 1 January 2010, when the new market model is scheduled to start operating in Lithuania.

In their Joint Declaration, the Prime Ministers' council of 27 April 2009 underlined the importance of creating an open and functioning common Baltic electricity market. Based on harmonized regulations, this marked should be integrated with the Nordic electricity market. Working with Nord Pool Spot was mentioned as being the most efficient way of achieving this goal.

“Choosing Nord Pool Spot will ease the future integration of the Lithuanian electricity market into a larger Nordic-Baltic market,” says acting CEO Hans Randen in Nord Pool Spot.

“The Nord Pool market is one of the most efficient models of electricity trade operating in Europe, and besides, we are geographically closest to it,” says Mr. Aloyzas Koryzna, Chairman of the Board and CEO of Lietuvos Energija AB.