The Lithuanian natural gas distribution system operator Lietuvos Dujos has approved a new structure of the company, i.e. as of 1 June the legal status of the company's branches will be terminated and the units of Lietuvos Dujos in the largest cities of the country will operate as regional gas network departments.
"Changing of the legal status of the branches is aimed at facilitating the management structure of the company and speeding up decision making, expediting the service of gas consumers and making the work of the company more efficient", Liudas Liutkevičius, the Chairman of the Board and the CEO of Lietuvos Dujos, said.
The projects of centralisation of the service functions ensuring integration of Lietuvos Dujos into Lietuvos Energija are currently being implemented within the gas distribution company which belongs to the state-owned company group Lietuvos Energija at the group level. The company's public procurement function is going to be delegated to the group company Verslo aptarnavimo centras; the functions of administration of employment relations and accounting will also be delegated. A certain part of activities within the company will be centralised in view of greater efficiency.
"Reorganizing of the company goes in line with development of the culture of work based on unified rules, centralisation of more functions, plans for purchase of more services from outside. Such actions should allow creating a more flexible company", Liudas Liutkevičius said. According to him, such changes within the company will facilitate the merger of the companies operating the gas and electricity distribution networks which is to be implemented till the end of the year.
The recently published interim operating results of the company for 12 months reflect the existing situation and the need for reconsidering the company's activities for the company to remain competitive. In 2014, the amount of distributed natural gas decreased nearly for all groups of consumers and only for agricultural companies the amount of distributed gas has slightly increased. In Lithuania, during the period of five years the amount of distributed gas decreased by more than one third: in 2010 nearly 1.2 billion cubic meters of gas was distributed, whereas in 2014 750 million cubic meters of gas was distributed. This year the air temperature of the traditionally coldest months, namely January and February, was not so low and it has been estimated that gas distribution during these months in 2015 was 24 per cent lower than one year ago.
"In response to the persistently high gas price, business and industry has rapidly shifted to the use of other types of fuel. In fact, today the situation has changed: the significantly lower gas price and lower fee for connection to the gas pipelines are applicable. However, in order to gain back our gas consumers, we must become more attractive and offer more benefits", Liudas Liutkevičius said about the need for changes taking place within Lietuvos Dujos.
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