Enefit Power and competition watchdog cannot agree on universal price

Electricity pylons in Estonia.
Electricity pylons in Estonia. Source: Ken Mürk/ERR

State-owned power company Enefit Power and the Competition Authority have still not agreed on the new cost-price of Estonia's universal electricity price instrument. The Eesti Energia subsidiary moved for raising the universal service price in late October, while the watchdog has taken over a month to respond.

The Competition Authority said that the process is stuck behind lack of information. For as long as an agreement is not reached, consumers can continue buying electricity at the current fixed price of 15.4 cents per kilowatt-hour to which sellers' margins are added, ERR TV news reported.

Enefit Power filed for a higher price on October 28. The law gives the competition watchdog a month to react. While over a month has passed, there is still no agreement on a new price, with neither side willing to shed light on what it could be.

Director of the Competition Authority Evelin Pärn-Lee said that proceedings have been paused during additional requests for information.

The watchdog hopes to determine by December 9 whether it can approve the new price or whether additional proceedings spanning 60 days need to be launched.

Pärn-Lee hinted that the agency and Enefit Power sport a different understanding of what the company's profitability should be, as well as how to treat quantities sold in advance so to speak.

CEO of Enefit Power Andres Vainola said that the watchdog has been given a highly detailed overview of how much of the company's production is sold in advance and that he would refrain from speculation in terms of what the price will be. "We will wait for the Competition Authority's position. The current price is not enough to cover our expenses," he said.

Minister of Finance Annely Akkermann (Reform) said that she will not interfere in the process, adding that she hopes the new price will remain below 20 cents per kWh.

"Aktuaalne kaamera" news asked the minister whether she believes it is fair that the consumer has to pay for the state's inability to keep the Auvere Power Plant going through a higher universal service price. "The Competition Authority has its models for the universal service. I'm sure maintenance and repair work is factored in," she replied.


Follow ERR News on Facebook and Twitter and never miss an update!

Editor: Aleksander Krjukov

Hea lugeja, näeme et kasutate vanemat brauseri versiooni või vähelevinud brauserit.

Parema ja terviklikuma kasutajakogemuse tagamiseks soovitame alla laadida uusim versioon mõnest meie toetatud brauserist: