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    Lithuania braces for hefty subsidy bill: press

Summary

Taxpayers may be on the hook for €500mn - €1bn in subsidies as energy inflation tops budget considerations.

by: Callum Cyrus

Posted in:

Complimentary, Natural Gas & LNG News, Europe, Security of Supply, Political, Tax Legislation, Regulation, News By Country, Lithuania

Lithuania braces for hefty subsidy bill: press

Lithuanian prime minister Ingrida Simontye admitted taxpayers could be on the hook for €500mn-€1bn in energy subsidies next year, despite Lithuania being first in Europe to completely end Russian gas imports, local broadcaster LRT.lt reported August 23.

In the second half of 2022, €570mn has already been allocated for payments to subsidise electricity and natural gas suppliers.

Roughly €370mn of that sum will fund debts charged to Lithuanian state-controlled utility Ignitis, with a further €200mn allocated to private sector gas and power businesses.

Simontye told LRT.lt energy inflation would be prioritised in next year's fiscal budget. "As we observe the situation, we see that the main […] problem [...]  is to contain the upsurge in energy prices next year, and the government is currently working on proposals for that, and this will be the key priority in next year’s budget," she said.