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Estonian Competition Authority Takes Action Against Elering AS for Unjustified Restrictions

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The Estonian Competition Authority has issued a precept to Elering AS for unjustifiably restricting risk hedging instruments in the electricity market, violating EU regulations.

25.11.2025 | Estonian competition authority


On 24 November 2025, the Estonian Competition Authority issued a precept to Elering AS due to the company's unjustified restrictions on the use of risk hedging instruments in the electricity market. These instruments, specifically long-term transmission rights, are essential for market participants to mitigate risks associated with regional price differences at the Estonia-Latvia bidding zone border.

The Competition Authority found that Elering AS's restrictions were not compliant with European Union law, as the company cited the need to maintain the normal state of the electricity system as justification. However, such restrictions are not permissible under EU regulations. The Authority had previously warned Elering AS about this issue, but the company continued to impose the same limitations.

As part of the precept, the Competition Authority has mandated that Elering AS must align its operations with EU requirements by 1 December 2025. The Authority oversees competition in various sectors, including electricity, natural gas, and public services, and is committed to combating unfair trading practices.

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