Competition Authority rejects Elektrilevi's request to raise network fees
The Competition Authority has rejected a request by distribution network operator Elektrilevi to raise network fees, which was tied to changes in the network service fees purchased from the transmission system operator Elering.
Following an analysis, the Competition Authority concluded that approving Elektrilevi's request was unjustified, as it would have led to an unwarranted increase in network fees.
The authority added that consumers lack the option to choose another service provider as Elektrilevi has a monopoly.
This means that decisions by Elektrilevi to incur or avoid costs — and consequently to raise or not raise service prices — do not necessarily align with the consumers' interests.
"Since Elektrilevi OÜ holds a dominant market position, it is essential to ensure that the company does not include excessive costs in its service prices," said Külli Haab, head of the agency's regulation department.
The Competition Authority noted that Elektrilevi has the opportunity to significantly reduce the costs of the network service purchased through Elering's tariff change — by approximately €5 million — thereby mitigating the need to raise network fees.
The Competition Authority oversees competition as well as the regulation of electricity, natural gas, district heating, postal services, water and sewerage systems, railways, aviation, and ports. It also works to prevent unfair trading practices in the supply chain of agricultural products and food.
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Editor: Helen Wright
