Baltic, Energy, Estonia, Legislation

Parts noted that the Baltic States signed already in 2009 a memorandum (BEMIP) over development of the energy market and one of its basics was opening up the electricity market and abolishing the control over electricity tariffs for home consumers. "Estonia has followed the agreed upon plan of action," Parts wrote to Latvian economy minister Daniels Pavļuts and Lithuanian energy minister Jaroslav Neverovič.

"At the same time, the workings of the Baltic states' electricity market have to be improved," noted Parts.

Parts wrote that the electricity price increase in June does not correspond to the real market situation since a remarkable part of Latvian and Lithuanian producers don’t make offers at the common electricity bourse. Since a large part of producers don’t make offers, it results from time to time in electricity deficit and that causes price leaps that could be avoided if all Baltic producers made offers. Eesti Energia sells all the electricity it produces to the electricity bourse.

Parts added that Estonia will impose restrictions at the Latvian border to the movement of electricity via the bourse if Latvia and Lithuania don't make steps to liberalise the electricity market. This means primarily that Latvia and Lithuania should force home consumers to buy electricity from the bourse like it is from the start of this year in Estonia.

Parts gave the corresponding orders to restore restrictions at the Estonian-Latvian border to state-owned grid company Elering.

The cause of the anger of Parts is the price leap at the electricity bourse in summer when a MWh cost 104 euros, which is over 3 times more than electric energy cost for home consumers a year ago. Economy ministry estimated that Latvian and Lithuanian energy deficit was the cause of the price leap.