Eesti Energia Dips Into Gas Market, Offers Fixed Rate Contract
Eesti Energia will begin supplying natural gas to large-quantity consumers, in a market that is dominated by Eesti Gaas, which is largely owned by Gazprom.
Eesti Energia's new contribution to the market is that the company is the first to offer fixed rate contracts, which have become the most popular option on the recently opened power market, reported uudised.err.ee.
"Until now all the customers have had to buy gas at a rate tied to world oil prices, which changes every month and does not allow a customer to accurately predict and control costs. Our offer is a good example of how more competition creates more choices for customers," said Eesti Energia product director Karla Agan.
Eesti Energia had launched a pilot project in the gas market at beginning of this year. In the summer, it won an Elering tender to act as gas supplier for the reserve power station in Kiisa.
"In the future, when a data-sharing platform similar to thatofth electricity market is introduced in the gas market, it is possible that we will offer gas products to small and medium business consumers and households," Agan said.
Estonia's gas market was opened in 1998 and currently consists of 30 retailers. The market is still dominated by Eesti Gaas, but Eesti Energia representatives predict the market will expand to include more competitors in coming years.
Äripäev reported last month that Eesti Energia was negotiating with Lithuania's Klaipedos Nafta for gas it would store underground in Latvia and sell when "the time was right."