Energy, Estonia, Legislation

The court found out that Eesti Energia had breached an agreement when refused to sell electricity to BEP back in 2008; thus the private energy company had to purchase electricity at higher tariffs.

Tõnu Aas, the CEO of Narva Power Stations, that belong to Eesti Energia, refused to comment on the matter, and said that, possibly, the company will appeal against the ruling.

Priit Mikelsaar, the board member of BEP, said that the first-instance court ruling showed that fair and transparent approach to market operators was a standard also in the energy sector.

Eesti Energia claims that it wanted to step up against BEP's deals of purchasing electricity on the local market and selling it further, thus making profit.

"The re-sale with a profit that Eesti Energia is referring to is inappropriate and inaccurate attempt to confuse less informed people and to save reputation," noted Mikelsaar.

Dispute between the two power companies began in February 2008 when Narva Power Stations stopped supplying power to two customers of BEP and demanded that the two companies sign direct electricity supply contracts with Eesti Energia.

The two companies, electric network firms Kulon and Sagro Elekter, had signed a contract with the power station for purchasing electricity its pre-determined supply terms. At the same time the two companies had signed an open supply contract with BEP.

When the two network operators refused to comply, Narva Power Station stopped supplying them until May 20, 2008.

The court found that Kulon and Sagro had contracted BEP to act as a balance manager that sells and buys electricity to partners so that they can keep a balance between purchased and consumed electricity amount.