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Swedbank: industry in Estonia is in danger as due to the growing prices of electricity

Juhan Tere, BC, Tallinn, 22.12.2009.Print version
Swedbank stated that the industry in Estonia is in grave danger as due to the growing prices of electricity, the companies focussing on chemistry and metallurgy enterprises might have to close down from the year 2013 in the Baltic region as these industries consume a lot of energy, Eesti Päevaleht/LETA writes.

Estonian entrepreneurs estimate that the government’s path to forcefully raise the excise tax rates on energy amplifies the price surge caused by the international quota business.


The tax-free CO2 quotas used so far will disappear and European states will have to start selling pollution permits to their companies at auctions.


Companies with energy-intensive production share the expectations of Swedbank as to the price and believe a price increase of up to 40 percent may take place. “We should start producing electricity ourselves,” says Riia Ratnik, board member of Estonian Cell, that is Estonia’s largest electricity consumer. “Currently we are analysing with whom and on what fuel we would build the electricity station.”


“Cheap electricity was one of the competitive advantages of Estonian industry but CO2 trade and free electricity market will make it non-existent,” said Development Fund economic expert Heido Vitsur. “When our government keeps raising energy excise taxes uncontrollably, there is just one result; energy-intensive sectors contract and new jobs don’t emerge from anywhere,” said Vitsur.

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