Warranty Electricity Supply for Businesses
What Is Warranty Electricity Supply?
Warranty electricity supply is a temporary electricity supply service that ensures businesses do not remain without electricity when their chosen independent electricity supplier fails to meet its obligations, ceases operations, or when a company does not have a valid electricity supply contract with an independent supplier.
Warranty electricity supply is provided by AB “Energijos skirstymo operatorius” (DSO) in accordance with the Law on Electricity of the Republic of Lithuania, Article 44.
Important: warranty supply is only a temporary solution and is not intended for long-term use by businesses.
Warranty Electricity Supply Is More Expensive for Businesses
Businesses on warranty supply usually pay higher electricity prices than under market-based supply contracts. This is because the warranty supply price directly depends on the current month’s electricity exchange price plus an additional surcharge.
This means that:
- The price may change every month, making electricity costs difficult to plan.
- Up to 25% of the variable price component may be fixed, but the remaining part still depends on exchange prices.
- For the same amount of electricity consumed, businesses may pay more than if they chose an independent supplier.
Diversify risk and control your costs. Instead of relying on a temporary solution, choose an independent electricity supplier and diversify your risk: fix part of your electricity price in advance and purchase the remaining part at exchange prices. This way, you gain price clarity and better cost control.
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Why Choose Enefit?
Reduce your electricity costs with Enefit.
Competitive electricity supply prices
Clear business plans tailored to your company’s profile
Smooth transition from warranty to independent supply
A reliable independent electricity supplier
Average account manager experience: 4 years, ensuring professional guidance
Why Is a Company on Warranty Supply?
All legal entities that:
- have not chosen an independent electricity supplier,
- do not have a valid electricity supply contract with an independent supplier, or
- whose chosen independent supplier fails to meet its obligations,
are automatically placed on warranty electricity supply to ensure uninterrupted electricity supply.
In such cases, DSO is authorised to supply electricity so that businesses are not left without power.
Warranty Electricity Supply Pricing for Businesses
Warranty supply pricing is among the highest in the market.
It is calculated based on:
- the electricity exchange price of the previous reporting month,
- the average monthly electricity exchange price in the Lithuanian price zone,
- an additional surcharge, which may result in warranty supply prices being up to 25% higher than those offered by independent suppliers.
This means that businesses purchasing electricity under warranty supply often overpay significantly.
Why Do I Need to Choose an Independent Electricity Supplier?
Under the current Law on Electricity:
- warranty electricity supply may be provided for no longer than 6 months;
- after this period, DSO has the right to disconnect electricity supply if no contract with an independent supplier is in place.
The National Energy Regulatory Council (VERT) actively encourages businesses to choose an independent supplier to avoid supply interruptions and unnecessary costs.
What Changes When You Choose an Independent Supplier?
After signing a contract with an independent electricity supplier:
- electricity consumption and metering remain unchanged;
- you receive a clear and predictable electricity price;
- you receive the electricity purchase invoice from your chosen supplier;
- you receive a separate invoice from DSO for electricity distribution and transmission services;
- you avoid warranty supply pricing and the risk of electricity disconnection.
How Can a Business Choose an Independent Supplier?
1
Assess your annual electricity consumption (e.g. below or above 1,000 kWh per year).
2
Choose a suitable electricity supply plan.
3
Sign an electricity purchase and sale agreement.
4
Electricity supply continues without interruption – warranty supply is terminated automatically.