Energy, Estonia, Legislation
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Competition Board won’t allow Eesti Energia to raise grid fees
Juhan Tere, BC, Tallinn, 01.09.2010.
Print version
Print versionThe Estonian Competition Board announced that it rejected on Wednesday the application of Estonian state-owned energy giant Eesti Energia’s distribution grid managing subsidiary OÜ Jaotusvõrk to raise network fees by nearly 20%, Estonian press reports.
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The plan of Jaotusvõrk prescribed raising operating costs by 11.3% at the same time. The Competition Board announced that network fees have to be cost-based and justified and thus the Board does not think that the network fees price application is justified, writes LETA.
The Board said that while companies that operate in the conditions of the free market have started cutting costs, monopolies have to take the same direction and a major growth of operating costs in the current economic environment cannot be justified.
According to the electricity market law, the price electricity consists of the prices of electric energy and network services and both have to be okayed by the Competition Board.
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