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International Internet Magazine. Baltic States news & analytics Wednesday, 22.05.2019, 10:05

Elering signs agreement to launch joint gas market with Finland, Latvia

BC, Tallinn, 14.02.2019.Print version
The Estonian transmission system operator Elering has signed a new voluntary agreement on inter-TSO compensation with the gas transmission system operators in Finland and Latvia, which enables the functioning of a single gas transmission tariff zone for Finland, Estonia and Latvia from the beginning of 2020, Elering said.

The agreement unifies the entry point tariffs on the external borders of the region and removes commercial interconnection points between countries. It will be used for transportation of the gas across Finland, Estonia and Latvia without additional charges.  

The agreement concluded on Thursday is an important step towards unified regional electricity and gas markets, CEO of Elering Taavi Veskimagi said.

"We have regionally integrated Estonia's electricity market, now we are about to do the same with gas. In accordance with the agreement concluded, instead of three separate markets, there will now be a single gas market covering Finland, Estonia and Latvia. This is the first time in Europe when the gas markets of three states are united across national borders. A joint regional gas market increases competition and grants the consumers a fairer price," Veskimagi said.

The agreement also foresees compensation for TSOs of eligible variable costs and sets principles of the entry revenue re-distribution among the operators.

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