Abstract
Lithuania was invited at the end of 2002 to become a member of the European Union and to join NATO. The country, being in transition from a centrally planned to a free market economy, is experiencing fundamental transformations. Lithuania has inherited an energy sector with a comparatively good technical infrastructure but inappropriate for a small independent state. In order to transform the management in the energy sector, it was necessary to perform a lot of significant changes. Positive changes are based on the implementation of experience in other Central and Eastern European countries and many studies prepared by national specialists in cooperation with foreign experts.This paper describes the main alterations in management of the Lithuanian economy and energy sectors and recent changes in the power sector. The paper aims to analyse the country's progress in transition to a free market economy and necessary improvements in the near future.
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