Higher prices to support investment

  • 2011-07-20
  • From wire reports

TALLINN - Despite criticism from the minister of economic affairs and communications, Eesti Energia is planning to submit a new request to increase electricity prices, reports National Broadcasting. The energy company concedes that a mere increase in environmental taxes would not explain the entire planned price growth for which Eesti Energia has requested permission from the Competition Board. However, it also refers to its investment needs.

Member of the management board of Eesti Energia Margus Kaasik remarked that investments into oil shale mining, production of electricity as well as into the sulphur purification equipment in Narva have caused an increase in the company’s costs.
The enterprise has not yet decided whether to revise the request submitted to the Competition Board and submit it anew, or to do as minister Juhan Parts recommended – to withdraw its request. “Currently we feel that the price growth would be sufficiently justified and, hence, it is likely that it would be reasonable to continue with it,” said Kaasik.
If the price growth in the extent that Eesti Energia requested in the beginning of July – by raising the electricity bills for household customers by up to 6 percent – would get approved, it would bring the energy company tens of millions of euros of extra revenue per year.

The Competition Board has returned the price growth request to Eesti Energia, stating that there was not enough data presented in the document and, hence, the board declared itself unable to carry out the necessary analyses.