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Enefit Power AS’s request for a higher price of the universal electricity service was not approved by the Competition Authority

Photo of elecricity lines

On 28 April 2023 the Competition Authority rejected the request of Enefit Power AS to establish a higher production price of the universal electricity service.

Evelin Pärn-Lee, Director General of the Competition Authority, stated that the manufacturer’s proposed universal service production price does not meet the legal requirements and is not justified given the current market situation. 

The production price of the universal service is calculated on the basis of the three most economically cost-effective production units, which are the Auvere Power Plant, the 11th unit of the Balti Power Plant and the 8th unit of the Eesti Power Plant, all based on fluidised bed combustion technology. The Competition Authority examined the previously set temporary production price of €154.08/MWh and determined that it remains justifiable. While the market price of CO2 has risen, the fees for oil shale mining rights have decreased significantly.

The universal price of electricity (which the consumer pays to the electricity seller) consists of the approved price of electricity production, plus an additional cost component of the justified costs incurred by the electricity seller in relation to the universal service and a reasonable operating profit.

To ensure that electricity costs remain reasonable, the Competition Authority recommends that consumers check whether the electricity package they have selected is the most affordable and has reasonable terms and conditions. Despite the challenges in predicting fluctuations in electricity prices, it is beneficial for consumers to make informed decisions by utilising tools such as an electricity price comparison portal.

The Competition Authority exercises state supervision over competition, electricity, natural gas, district heating, mail, public water supply and sewerage as well as railways, aviation and ports.

Veel uudiseid samal teemal

The analysis identified no violation of market rules.

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According to the joint analysis of Estonian, Latvian, and Lithuanian energy regulators, the steep increase in the electricity price on the Nord Pool exchange on 17 August 2022 was a result of a combination of different factors along with the peculiarities arising from the small size of the Baltic market. The analysis identified no violation of market rules.

On 17 August, the average price of electricity in the Estonian price area increased to 682.05 euros/MWh, with the price being 4000 euros/MWh from 18:00 to 19:00.

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