Competition Authority: Oil shale rock prices fair
The Competition Authority ruled that oil shale rock sold by state-owned Eesti Energia to competitor Viru Keemia Grupp (VKG) has been priced fairly and Eesti Energia has not infringed competition rules.
Eesti Energia, which has the rights to the majority of annual oil shale mining quotas, signed an agreement with VKG in 2013, which fixed oil shale prices for the next five years. VKG chairman back then, Priit Rohumaa, said prices were a third higher they should have been.
VKG said at most, prices should have been a third higher than the price Eesti Energia sells the resource to electricity stations owned by Eesti Energia itself. The company said Eesti Energia will receive around 40 million euros from VKG more than it should have.
The company currently pays Eesti Energia 35 euros per ton for oil shale rock. VKG has rights to mine only 2.7 million tons of oil shale rock each year, while Eesti Energia mines the vast majority of the annual 20-million-ton quota.
VKG buys more from Eesti Energia, while the state-owned company often leaves its quota unfilled.
VKG asked the Competition Authority to investigate the matter in March 2014, with the authority now ruling that prices were not unfair to VKG.