TALLINN - The European Commission, the EU's executive arm, sent warning letters last week to 17 countries 's including the three Baltic states 's for failing to deregulate their energy markets. The delays are keeping energy prices too high, and if member states fail to act the commission will move to impose penalties. The commission expressed dissatisfaction over a lack of consumer choice in the market and the practice of regulating prices, adding that, under existing rules, it was too difficult for new companies to enter the market.
Other complaints involved favoritism among long-standing energy producers and the lack of separation between production and distribution. Third-party access to transmission networks was described as "discriminatory" and tariffs are not formed in a transparent manner.
The commission gave each country two months to respond.
"I expect that these infringement proceedings will attract member states' awareness," EU Energy Commissioner Andris Piebalgs was quoted as saying. "I hope measures will be taken," he added.
In Estonia, the Economic Affairs Ministry responded by saying that the warning lacked any substantial reproaches to the Baltic state.
"The reminder sent to us by the European Commission has no substantial value. First, the suggestions they have made are already incorporated in amendments to the electricity market act, which will be handed over to the government in the next few weeks. Besides, the letter contains points that Estonia cannot practically apply," Einari Kisel, head of the energy department at the Economic Affairs and Communications Ministry, told the Baltic News Service.
The European Commission has reproached Estonia for principles by which electricity transmission capacities can be distributed between market players if in short supply. Kisel said no such bottleneck actually existed in Estonia, but the bill works as a theoretical solution.
There are several editorial remarks in the reminder to Estonia, but these will be settled by the Electricity Market Act's new version, Kisel said.
The European Union's directive provides for the opportunity that, unless players build enough power plants, someone will get the right to hold a tender for the construction of a power plant. Kisel said the bill gives that right to the government. "Besides we have enough parties interested in the construction of power plants," he said.
