The reorganisation will be implemented on 1 January 2016 and the plant will cease operating. Two weeks ago, Vilniaus Energija referred to Vilnius City Municipality asking to receive the plant returned from lease as property which is no longer used to produce heat.
The law stipulates that employees have to be informed about dismissal at least two months in advance. They will receive notices about the termination of employment contracts on 30 October. Earlier it was estimated that the company might have to lay off approximately 200 employees, but more than 80 jobs were retained following close cooperation with trade unions.
“We did everything to preserve as many jobs as possible. Unfortunately, we will have to part ways with 114 colleagues,” said Linas Samuolis, the President of Vilniaus Energija.
The decision to suspend electricity production in combined heat and power plants was made by the Government. The Government has announced that public service obligation quotas would be eliminated for power plants on 1 January 2016. The Ministry of Energy has also publicly stated that Vilnius Combined Heat and Power Plant TE-3 was no longer essential in order to supply heat to Vilnius city. Abolition of public service obligation quotas makes the activities of the plant impossible as it cannot produce heat without generating electricity.