The purpose of risk hedging instruments – in this case, long-term transmission rights – is to enable market participants to reduce risks related to regional price differences at the Estonia-Latvia bidding zone border. Their restriction must be in accordance with European Union law.
In the Competition Authority’s assessment, Elering AS has restricted these instruments without justification, relying on the need to maintain the normal state of the electricity system. However, restriction on such grounds is not permitted under EU rules. The Authority has previously drawn Elering AS’s attention to this issue, but the company continued the restriction based on the same clause.
With the precept, the Competition Authority is obliging Elering AS to bring its activities into compliance with European Union requirements. The precept must be fulfilled by 1 December 2025, at the latest.
The Competition Authority exercises state supervision over competition, electricity, natural gas, district heating, postal services, public water supply and sewerage, as well as railways, aviation and ports, and fights against unfair trading practices in the agricultural and food supply chain. The Authority is within the area of government of the Ministry of Justice and Digital Affairs.