Efficiency of the third energy package: Gazprom vs. Lithuania, case study

Abstract

The Third Energy Package of the European Commission, enforced in March 2011, brought significant changes to the energy market of the European Union while implementing anti-monopolistic measure of unbundling. Most of all the measures will influence highly monopolised gas-dependent markets of Eastern Europe, especially Baltic States, who rush into implementing the measures hoping to gain energy independence. By studying a single case of a conflict between Lithuania and Gazprom, so far erupted around the new measures, via the analysis of recent events and previous actors’ behaviour tendencies, the thesis concludes that, in a short-term perspective, Third Energy Package regulations are unprofitable and even dangerous to develop within the monopolized gas market of Lithuania taking into account the lack of alternative energy sources and gas suppliers as well as of financial reserves for energy infrastructure transformation. It is proposed, that factual de-monopolization of the energy sector should be realized before implementing relevant administrative regulations.