TSO Head: Estlink 2 Will Usher In True Competition on Power Market
The director of transmission system operator Elering says that competition will arrive on the electricity market once the second Estlink undersea cable is completed and Nordic power producers enter the market.
The executive, Taavi Veskimägi, said that currently most consumers were effectively hedging against the free market, by entering into fixed-price agreements.
"That means that whoever fixes their price for a long term is hedging their risk using a derivative and paying a markup. But the cheapest electricity for the consumer should come through the market," he told ERR radio.
Most of the current seven suppliers are just re-sellers. "Many of the sellers do not have their own generating capacity, so we need that ones from the Nordics enter the Estonian market, to join Eesti Energia and Latvenergo."
The 650-megawatt Estlink 2 will become operational in 2014, tripling the electrical supply shared between the Baltic and Nordic markets.