15.01.2025 | Estonian competition authority
The Estonian competition authority, known as Konkurentsiamet, has begun an investigation into the justification of new connection fees imposed by Imatra Elekter AS, effective from February 1st. The company announced a substantial increase in its connection fees, which have remained unchanged for four years. The fee for connecting to the network and increasing the nominal current of the fuse will rise from €92.72 to €315.36, marking a staggering 240% increase.
Unlike network fees, which require prior approval from the competition authority under the Electricity Market Act, current legislation does not mandate the same for connection fees. Instead, the authority only needs to approve the methodology used for calculating these fees. However, Konkurentsiamet retains the right to retrospectively verify whether the specific connection fees have been calculated in accordance with the applicable laws and approved methodology.
Imatra Elekter AS, as a network service provider, charges fees for connecting to the network and for changes in consumption or production conditions. The competition authority is responsible for approving the calculation principles or methodologies for each network operator. During its oversight activities, Konkurentsiamet will assess the justification of the applicable fees. When calculating the connection fee or the fee for changing consumption or production conditions, the network operator must base its charges on justified costs incurred.
Konkurentsiamet oversees competition in various sectors, including electricity, natural gas, district heating, postal services, water supply and sewage, railways, aviation, and ports, while also preventing 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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