Eesti Energia backs down on price hikes

  • 2010-10-14
  • TBT Staff

The energy company announced it would not follow through with the proposed electricity price hikes.

TALLINN - Estonia's national energy company has said it will not follow through with proposed price hikes of nearly 20% after the company received harsh criticism from Prime Minister Andrus Ansip over the plans.

"We cannot expect the Competition Authority to handle our application in a rational way... Being under fire, it is difficult for us to negotiate with the Competition Authority," Eesti Energia's CEO Sandor Liive told Postimees

The announcement came after Ansip attacked the proposed price hike, saying the plan was "plain stupidity".

"It is unthinkable to ask for such a price hike," the prime minister told journalists as part of a long tirade against the planned price increases.

Opposition politicians, meanwhile, have said that the incident was a pre-arranged ploy designed to improve the prime minister's image ahead of elections early next year.

"This is an embarrassing incident - a self-created problem that was solved in order to appear to be the Estonian people's guardian against price increases," Edgar Savisaar, the leader of the opposition Centre Party, said in a press release.