09.01.2025 | Estonian competition authority
On January 10, 2025, the Competition Authority approved changes to Elering AS's methodology for calculating electricity balance service prices. This decision exempts consumers and producers from bearing the costs of frequency reserves for a period of five months, with the costs being covered by Elering AS during this time.
The relief measure will be in effect from February 1, 2025, to June 30, 2025. During this period, both producers and consumers will not have to pay for the procurement of frequency reserves, as these costs will be covered by Elering AS's excess revenue. Marilin Tilkson, head of the energy markets department, stated that the relief measure is justified considering the interests of market participants.
This decision comes as Estonia prepares to disconnect its electricity grid from the Russian and Belarusian frequency area and synchronize with mainland Europe in early February. As a result, Elering AS needs to procure frequency reserves to help manage the electricity system. Frequency reserves are essential for balancing consumption and production within the electrical system.
The Competition Authority 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 Ministry of Justice.
© 2024 PolicyPulse. All rights reserved.
See something you like or don't like? Let us know!