Eesti Energia not to suffer loss through delayed acceptance of Auvere plant ({{commentsTotal}})

State-owned Estonian energy group Eesti Energia, which has still not been able to accept its new Auvere Power Plant from the contractor, will not suffer a loss through the delay as any potential losses will be covered by contractual penalties.

"We have a very good contract; everything is regulated," Eesti Energia CEO Hando Sutter said at the presentation of the company's results for the third quarter on Friday. "It will be covered by penalties; Eesti Energia does not stand to suffer any loss through it."

Sutter declined to reveal the size of the penalty the group intends to claim from General Electric before the power plant has been accepted.

The problems with excessive dust emissions which have delayed the handover of the plant still have yet to be resolved. As a result, General Electric will build a bag filter for the plant, with construction slated to begin soon.

The power plant currently continues to operate at load levels whose dust emissions remain within allowable norms.

As the energy market is moving in different directions at present, it is too soon to talk about how sound an investment the Auvere power plant was, Sutter said, adding that this would become clear ten or more years later.

Eesti Energia invested 638 million euros in the Auvere power plant.

Editor: Editor: Aili Vahtla

Source: BNS



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