The Estonian competition authority conducted an analysis of the effects of price regulation metrics during the period from 2021 to 2023, a time marked by significant changes in the energy sector. One of the primary goals of the regulation is to ensure long-term price stability for consumers and to prevent monopolistic companies from earning excessive profits.

Following the energy crisis of 2021-2022, prices for regulated services decreased in 2023 across several sectors, particularly in district heating and electricity network services. The changes in prices for monopolistic services, especially in the energy sector, have a notable impact on the overall economic environment and price fluctuations.

The competition authority's active engagement with companies operating in regulated markets is crucial to ensure that the decline in input prices for fuels and electricity reaches consumers of monopolistic services without significant delays.

Significant progress has been made in the area of energy efficiency. The competition authority has established technical requirements for heat loss in district heating networks, aimed at motivating heat providers to invest in modernizing their infrastructure. The implementation of these requirements is intended to protect consumers from excessive costs caused by inefficient heat distribution.

During the analyzed period, both electricity losses and heat losses in district heating networks have significantly decreased. Compared to 1999, the absolute loss in electricity distribution networks is expected to decrease by approximately 69% or 704 GWh by the end of 2023. In district heating areas, the absolute heat loss in heating networks has decreased by 39% or 375 GWh since 2001. For instance, at an energy price of 100 €/MWh, this translates to a 'victory' worth 100 million euros.

While the reliability of Estonia's electricity networks has improved in the long term, with a reduction in the number of outages, it still remains dependent on weather conditions, as extreme weather events can still lead to extensive disruptions. Elektrilevi OÜ must work diligently to efficiently and quickly resolve outages.

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