Ministry: Public procurements for electricity failing

Eesti Energia headquarters in Tallinn.
Eesti Energia headquarters in Tallinn. Source: ERR

The Ministry of Finance said that recent public tenders for power have failed after receiving no bids. Eesti Energia gives unfavorable tender conditions as the reason.

Kaur Kajak, the ministry's undersecretary for administrative policy, turned to national energy company Eesti Energia after several public procurements for power failed without attracting a singe bid.

"Our information suggests that tenders where bidders can offer fixed prices, the market price or even the universal price still fail," Kajak said, adding that the ministry has asked Eesti Energia for feedback in terms of which kind of conditions could attract bids.

Dajana Tiitsaar, head of the Estonian market for Eesti Energia, said in her comments to ERR that the company cannot participate in public tenders for power because the conditions often require the price to remain unchanged for 30 days.

"Such a condition simply cannot be met on the backdrop of highly volatile market prices. We have provided feedback to local governments in the past and will surely be advising the ministry in terms of how to organize tenders sellers could partake in," Tiitsaar said.

Electricity seller Alexela told ERR that it is participating in public procurements. "We can give the example of the Saaremaa Municipality that recently opted for AS Alexela's bid. We will continue participating in tenders that sport sensible conditions in the future," Marit Liik, head of communication for Alexela, said.

The market price of electricity has fluctuated between €200-400 per megawatt-hour in the Estonian price area of the Nord Pool exchange in December.


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Editor: Mari Peegel, Marcus Turovski

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