Mažeika: storm-hit suppliers could avoid penalties under emergency status

A nationwide emergency declaration following the weekend storm could allow affected suppliers to avoid penalties for failing to meet their contractual obligations, Agriculture Minister Kęstutis Mažeika told LRT radio.

Mažeika said the declaration would also enable Lithuania to seek funding from the European Commission and activate force majeure provisions for farms unable to fulfil signed contracts.

“This would unlock the possibility of applying to the European Commission to activate an assistance fund and introduce a force majeure mechanism for farms that cannot fulfil their contracts,” the minister said.

He added that the exemption could also apply to companies supplying retail chains. Businesses unable to produce and deliver goods because of power outages would not face penalties within the supply chain, he said.

Emergency status has already been declared in the Biržai, Telšiai and Anykščiai districts following the storm.

As of Wednesday, tens of thousands of customers of electricity distribution operator ESO were still without power, while compensation will be paid to affected residents. Mobile communications were also disrupted, although operators said most of the network had been restored.

The storm on Saturday brought down trees in many parts of Lithuania, killing one person and injuring four others. Power supplies were disrupted for more than 268,000 customers at the time.

Source: LRT