EPSO-G, the holding company of a group of energy transmission and exchange companies, was established on 25 July 2012 as a result of the implementing of the mandatory requirements of the III Energy Package regarding the separation of energy generation and distribution as well as transmission activities that arise in respect of the Republic of Lithuania from the Law of the European Union. Originally the Company operated as a financial holding whose main function was consolidation of the financial results of the group‘s companies.
As Lithuania aimed to become the member of the Organization for Economic Co-operation and Development (OECD), it was decided by means of the decisions of the Government and the direct shareholder (the Ministry of Energy of the Republic of Lithuania) in 2015-2016 to carry out a major restructuration of EPSO-G into an active management company directly participating in the management of the subsidiaries, carrying out supervision and control of their activities, performing other independent functions related to the integrated management of the Group.
In accordance with the decisions of the Government of the Republic of Lithuania and the Ministry of Energy of the Republic of Lithuania “The Guidelines for the corporate governance of the group of the state-owned companies of energy sector” (hereinafter referred to as the Guidelines for the corporate governance) have been approved by the Order No 1-212 of the Minister of Energy of the Republic of Lithuania of 7 September 2015. The Guidelines have consolidated the new corporate governance model and core functions of the Group.
After the implementation of these decisions there are two full-fledged management companies in Lithuania that manage the separated activities and are proportional to the size of their group of companies: EPSO-G, the parent company that controls the activities of energy transmission and exchanges, and “Lietuvos energija”, the company that controls distribution and production activities. After the implementation of the requirements posed the European Union in such the way, this restructuring of the energy sector is recognized as one of the best examples of separation of activities in the energy sector in the European Union.