In the middle of 2003 the Seimas (the Parliament of Lithuania) passed the Law on Heat Sector, which clearly defined activities of the Commission with regard to Lithuania’s heat sector regulation, extended responsibilities and powers of the Commission.
The Commission is responsible for (1) approval of pricing methodologies for heat and hot water; (2) setting long-term prices for heat (for heat supplier selling no less than 10 GWh of heat energy annually) and annual prices for hot water; (3) analysis and approval of investments of regulated heat suppliers and generators; (4) liberalization of heat sector by: approval of the Rules of Procurement of Heat from Independent Heat Producers and the Rules of Use of Heat Transmission Networks (rules for Third Party Access).
The Commission handles pre-trial investigation of disputes between actors of the heat sector (independent heat producers, heat suppliers, consumers etc.).
The Commission issues licences to heat suppliers that sell no less than 10 GWh of heat annually. In order to ensure continuous legal and technical compliance of the licensees the Commission has the right to amend, suspend and terminate licences. Licences may be subject to withdrawal in case an investigation reveals violations of legal, technical or financial requirements set by the Commission or legal acts.