The Ownership Unbundling of Electricity Transmission System Operators: the European Union Policy and the Case in Lithuania

Abstract

One of the main strategic goals of the European Union is the creation of competitive single electricity market. The effective unbundling of monopole activity of transmission of electricity from competitive activities of supply and generation of electricity is the key element of competitive electricity market. Thus the Commission proposed the model of ownership unbundling of the transmission system operator from supply and generation of electricity. The defining element of an ownership unbundling model is that the network of electricity transmission is operated and owned by one independent company, which clarifies the incentives, responsibilities and liabilities for the network.