Cabinet Decides to Separate Distribution Grid and Eesti Gaas
Despite protests from the gas monopoly, Eesti Gaas, the Cabinet today mandated that the country's gas distribution network be disaffiliated from its parent supplier.
The move toward market liberalization and improved energy security, which must take effect by 2015, is required by an EU directive.
Russia's Gazprom holds a 37 percent stake in Eesti Gaas and opposed the government's plan. Eesti Gaas has said that the government, fearing the influence of Gazprom, has resorted to the road most harmful to consumers. The EU directive, Eesti Gaas said, could be satisfied by a simple reorganization of company management.
In September, the European Commission launched an investigation in 10 countries into EU companies that buy gas from the Russian Gazprom in attempt to find evidence of violations of EU competition law. The offices of Eesti Gaas were among those searched.
Ott Tammik