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Competition Authority Report Highlights Electricity and Gas Market Concerns in Estonia

22.08.2024 | 🇪🇪 Estonian competition authority

The Competition Authority's 2023 summary of the electricity and gas market in Estonia emphasizes the need to improve electricity supply reliability.


The Competition Authority's report for 2023 points out issues with the reliability of electricity supply, focusing on maintenance deficiencies in Elektrilevi's power lines.

It was found that extensive power outages were caused by Elektrilevi neglecting maintenance on a significant portion of its power line corridors, leading to widespread disruptions. The Authority also criticized Elektrilevi for inadequate planning to address major breakdowns.

Furthermore, reducing weather-sensitive overhead lines and enhancing the weather resilience of the electricity grid are highlighted as crucial steps to minimize faults. Ensuring stable consumer tariffs while improving network reliability is deemed essential, with any cost increases not surpassing inflation levels.

In a broader context, Estonia faces challenges with sufficient electricity production capacities, especially with plans to phase out oil shale production capacities in the long term, potentially impacting electricity supply reliability by 2027.

The report also mentions amendments to the Gas Act in 2023, introducing provisions related to strategic gas reserves and the management costs of liquefied natural gas infrastructure. The changes grant Eesti Varude Keskus the right to access necessary data for gas reserve payment verification.

Following the events of 2022, electricity and gas prices in 2023 have generally stabilized, with a significant decrease in average prices compared to the previous year. The upcoming key change in the electricity market involves the desynchronization of Estonia and other Baltic states from Russia and Belarus' frequency area in February 2025.

The Competition Authority oversees various sectors, including electricity, gas, district heating, postal services, water supply, railways, aviation, and ports, ensuring compliance with competition regulations.

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