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The assessment of the Estonian Competition Authority of Elektrilevi OÜ’s independence and its activities related to equal treatment

The Estonian Competition Authority conducted an analysis to map the risks related to the independence of Elektrilevi OÜ from the Eesti Energia AS group. The authority found that the integration of Elektrilevi OÜ with the parent company Eesti Energia AS creates a risk where the actual management of the distribution network is difficult to implement, and a situation may arise where the parent company holds a lot of inside information. The authority reached the opinion that in the issue of whether the independence of Elektrilevi OÜ from other companies belonging to the Eesti Energia AS group is sufficiently transparent, the most critical aspect is the removal of the management centre of Elektrilevi OÜ from the company. In addition, the distribution network operator transferred to Enefit Connect OÜ many other services that meet the criteria for the main activities of a distribution network operator.

The authority considers that the reform did not improve the independence of the company in any way and is not in line with the objective of Directive (EU) 2019/944 of the European Parliament and of the council, which provides clear guidelines for strengthening the independence of distribution networks. According to the Estonian Competition Authority, the ownership separation of Elektrilevi OÜ from the Eesti Energia AS group would certainly help to ensure better transparency and independence of the activities of Elektrilevi OÜ.

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