In the process of the implementation of market principles and of the liberalization of management of various branches of infrastructure, the Government has gradually withdrawn from their regulation by transferring these functions to independent institutions. The price setting principles and the prices themselves, entry to the market (licensing), promotion and supervision of competition, defence of customer rights  - these and other functions were passed over to the newly established institutions which were not subordinate to the Government. These principles have been set forth in the Directives of the European Commission, recommendations of the Work Bank and other international organisations.

The Government, seeking to implement the principles of market and to liberalise the administration of the branches of infrastructure, has gradually rejected their regulation by transferring these functions to independent institutions. The principles of price setting and the prices themselves, entry into the market (licensing), promotion and control of competition, consumer protection and other functions were passed over to the newly established institutions that were not under subordination of the Government. These principles are laid out in various directives of the European Union, recommendations of the World Bank and other international organisations.

The Law on Energy, adopted in 1995, foresaw that an independent State institution, the State Price Regulation Commission of Energy Resources, should prepare the methods for energy price calculation, inspect price calculations provided by energy specialists and submit its conclusions to the Government. In July of the same year the President of Lithuania by his decree set up such Commission, which, however, was a public commission, constituted of the representatives of various ministries, departments and scientific institutions. In a short term, it became evident that such complicated work was not possible to be performed on public grounds, and the Government proposed to establish a functioning institution, possessing its own budget and staff. (more information).