Social Democrats Concerned About Energy Sector's Future
The Social Democrats say that they share Auditor General Mihkel Oviir's concern about electricity price shocks and the troubled future of Estonia's fossil fuel powered energy sector.
"The Auditor General said in his report and in front of Parliament that there is reason to fear that energy produced from oil shale will become so costly that it may not have any buyers in free market conditions,“ said Indrek Saar, deputy chairman of the faction in Parliament, on October 18. "With only a year and four months left until full deregulation, there is no certainty what will happen on January 1, 2013."
Saar said electricity prices are set to rise 30-50 percent, but the government lacks a plan for cushioning the blow.
Saar said there is "total indeterminacy" with regard to building new oil shale power plants and rapped Economic Affairs Minister Minister Juhan Parts in this regard.
The Social Democrats are interpellating Parts on how he intends to finance the plan to build the new Narva power plant.
The National Audit Office says Estonia will not necessarily receive permission for free carbon credits for Eesti Energia's new plant, yet the state-owned company has been given a green light by the state to start construction and is looking to fund the billion-euro investment, which has already contributed to a downgrade in the company's credit rating.
Kristopher Rikken