Synchronization has nothing to do with higher electricity prices - Lithuanian PM

VILNIUS - The Baltic countries' synchronization of their electricity grids with Western Europe, performed last weekend, has nothing to do with the spike in electricity price hikes in early February, Lithuanian Prime Minister Gintautas Paluckas says.

In his words, prices are going up because of the cold weather and limited interconnection capacity.

"This issue definitely has nothing to do with synchronization. We can see that the weather has cooled down, the demand has increased, and our interconnectors are limited, I mean NordBalt (the Swedish-Lithuanian offshore electricity link - BNS). After all, we all know that the Estonian link with Finland is one of the most damaged," Paluckas told reporters in Klaipeda on Friday.

"We have to fire up our own gas-fired power plants and it costs everyone more," the prime minister added.

Asked by reporters whether the government would consider compensating households or businesses, Paluckas said that if electricity prices remained higher for a longer period of time, aid measures would be considered. Businesses, according to the prime minister, could be compensated for the cost of electricity in order to maintain their competitiveness.

On Friday, electricity prices will range between 131 and 295 euros per MWh on the Nord Pool electricity exchange in Lithuania, and the average price will stand at 183.15 euros. The highest wholesale price this week was recorded on Wednesday when a MWh cost 230.35 euros.

Earlier this week,BNS sited Renatas Pocius, chair of the National Energy Regulatory Council, saying that this week's higher prices in the Baltic states were due to low generation from renewable resources, frost, the non-operational EstLink2 maritime link between Finland and Estonia, higher consumption, as well as higher natural gas prices.