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Regulator Rejects Elektrilevi's Higher Network Fee Proposal

30.12.2024 | 🇪🇪 Estonian competition authority

The Estonian Competition Authority has denied Elektrilevi OÜ's request for higher network fees, citing concerns over unjustified price increases for consumers.


The Estonian Competition Authority (ECA) has officially rejected Elektrilevi OÜ's application for higher network fees, which was submitted on December 31, 2024. This request was linked to changes in the fees for network services purchased from the primary network operator, Elering AS.

Following a thorough analysis, the ECA concluded that approving Elektrilevi's request would lead to an unjustified increase in network fees. As a natural monopoly, Elektrilevi OÜ's consumers lack the option to choose alternative service providers, which raises concerns about the company's ability to raise prices without considering consumer interests.

Külli Haab, head of the ECA's regulatory service, emphasized the importance of monitoring companies in dominant market positions to prevent excessive cost pass-throughs to consumers. She noted that Elektrilevi OÜ could significantly reduce costs associated with the network services from Elering AS, potentially saving around 5 million euros and thereby mitigating the need for increased network fees.

The ECA is responsible for overseeing competition in various sectors, including electricity, natural gas, district heating, postal services, water supply and sewage, railways, aviation, and ports, while also preventing unfair trading practices in the agricultural and food supply chain. The authority operates under the jurisdiction of the Ministry of Justice.

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