Energy, Estonia, EU – Baltic States

For companies who buy electricity from the open market fixing prices is of no use either since new year’s price negotiations are based on the average price of the previous year.

“This is a dirty trick played by our Southern neighbours to our free market consumers and it is not possible to tolerate that situation for much longer,” said Elering’s board chairman Taavi Veskimägi. He said that the price of electricity at the Estonian electricity bourse is motored higher by the major deficit of electricity in Latvia and Lithuania. “And although a long time ago, it was agreed at the Baltic Sea states prime ministers and European Commission president level, that Nord Pool Spot electricity bourse would be launched in Latvia-Lithuania, it has still not been done in these states due to political unwillingness,” said Veskimägi.

In essence Estonian free market consumer has to compete with Latvian and Lithuanian consumers but they lack the possibility of benefitting from the potential offers of producers of these states, explained Veskimägi.

Estonia joined the Nordic states electricity bourse Nord Pool Spot in April last year.

In July this year a record amount, 539 GWh, of electric energy was sold in NPS Estonian price region, of which 56% were bought by Latvian, 41% by Estonian and 4% by Lithuanian companies.