Estonian Authority Exempts Producers and Consumers from Frequency Reserve Costs Until 2025
The Estonian competition authority has approved changes to the pricing methodology for Elering AS's electricity balancing service, relieving producers and consumers from frequency reserve costs until the end of 2025.
18.06.2025 | Estonian competition authority
On June 18, 2025, the Estonian competition authority approved modifications to the pricing methodology for Elering AS's electricity balancing service. These changes will exempt both consumers and producers from bearing the costs associated with frequency reserves until the end of this year, with Elering AS absorbing these expenses.
The new methodology introduces a relief measure that will remain in effect until the end of 2025. Under this measure, the costs incurred by producers and consumers for acquiring frequency reserves will be covered by Elering AS's surplus revenue, meaning they will not have to pay for these costs this year.
This decision follows the disconnection of the Estonian electricity grid from the frequency area of Russia and Belarus, which occurred in early February of this year. As a result, Elering AS needs to procure frequency reserves to help manage the electricity system. These reserves are essential for balancing consumption and production within the electrical system.
The Estonian competition authority oversees competition in various sectors, including electricity, natural gas, district heating, postal services, water supply and sewage, railways, aviation, and ports. It also works to prevent unfair trading practices in the agricultural and food supply chain. The authority operates under the jurisdiction of the Ministry of Justice.
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Elering AS Frequency Reserve Costs Exemption
Elering AS's exemption of frequency reserve costs investigated by the Estonian competition authority for regulatory compliance issues. Recent updates include the approval of changes to Elering AS's methodology for calculating electricity balance service prices, exempting consumers and producers from these costs for five months.