TALLINN - Estonia plans to render entry into market easier for electricity producers as it also affects the state's objective to increase the share of renewable energy in the sector.
Chancellor of Justice Ulle Madise said that the 31,950 euro minimum share capital and licensing requirements imposed on producers of electricity unduly restrict the freedom to conduct a business and should therefore be abolished.
The Ministry of Economic Affairs and Communications said in its reply to the chancellor of justice that it agrees to ease the said authorization requirements once more.
The ministry's working plan also includes a bill seeking to transpose a new electricity market directive. With the draft legislation, which the EU members states must comply with by the end of next year, the ministry intends to further relax the criteria imposed on the activities of electricity producers.
The ministry noted, however, that so far the prerequisites imposed on electricity producers' activities have served their purpose. The requirements have also been eased previously with the aim to reduce the administrative burden of entrepreneurs and the Competition Authority. The requirements in question stem from the principle that the producer should be responsible for ensuring security of supply and the provision of a vital service.