ESO terminates the tender for the procurement of smart metering infrastructure

In order to manage investments with the maximum efficiency, AB Energijos Skirstymo Operatorius (hereinafter – the Company) has undertaken to adjust the strategy of installation of smart metering infrastructure, giving a higher priority to the market share, which consumes more, thus it is adjusting the initial number of smart meters to be installed.

In observance of the requirements of public procurement and seeking to create equal opportunities to take part in the tender procedure for all the willing and potential suppliers, the Company terminates the procurement of smart accounting infrastructure (“Procurement of smart accounting infrastructure”, No. 423256). The plan is to publish a new tender in the upcoming weeks.

The newly published terms and conditions of procurement will contain updated scope of procurement and the related qualification requirements. Also, taking into account the already received suppliers’ inquiries and comments, the Company will make the related adjustments, which will allow updating documentation to all interested tenderers.

All information necessary for suppliers on the new procurement of smart metering infrastructure will be published on CPP IS in the Central Public Procurement Information System and in the CPPP, the EU public procurement information system (TED). 

The National Energy Independency Strategy approved by the Seimas in 2018 obliged the Company to install smart metering infrastructure in Lithuania by 2023. The publishing of a new procurement procedure of smart metering infrastructure will not have a material impact on the overall project implementation plan. As previously announced, the plan is to start launching the installation of smart metering in Q IV of 2020.

For more information on smart metering infrastructure project being implemented by the Company, please refer to: http://www.eso.lt/lt/smart-metering-program_2041/ismanioji_apskaita.html.

About the smart metering project

When approving the project investments with the National Commission for Energy Control and Prices, a wide range of financial, social and economic benefits to consumers, the distribution network and market empowerment has been discussed and calculated. They can be divided into three main categories:

• Long-term benefits to residents. As many as 450 000 consumers in Europe took part in 100 pilot projects in different countries. The review prepared by the European Smart Meters Industry Group (ESMIG) estimates that, depending on the involvement of consumers in pilot smart metering projects, their savings ranged from 5% to 8.7%. During the pilot project carried out by ESO in 2017, customers used up to 6% less electricity.
• Benefit to Lithuanian economy. Having installed smart meters and capturing consumption every 15 minutes, competition will be enabled, i.e. independent suppliers will be able to better compete for customers - to compete in terms of services, their quality, prices or other individual solutions. A similar transformation took place in the telecommunications sector twenty years ago. The installation of smart meters can be expected to help achieve market competition and dynamics, which will bring the greatest benefit of choice to every Lithuanian consumer.
• More efficient management of the distribution network. Having installed smart meters, ESO will be able to remotely see where and what consumption is illegal, and to promptly take action to stop such activity. Maintenance of the quality of the electricity network will become simpler, investments in the network will be better targeted, also optimizing costs of meter maintenance, the taking of meter readings and other costs currently incurred by ESO.