As of 1 January, 2013, Estonia’s electricity supply market will be privatised and opened up to competition thus making it one of the last erstwhile state monopolies in Estonia to be privatised.
As a result, electricity prices will be set in accordance with the Nord Pool spot power exchanges, which comprises some 350 electricity suppliers in the Baltic Sea region, rather than set by the state.
The open market does not affect the electricity excise and renewable energy fees because these are calculated from the electricity consumed, the Eesti Energia website stated.
However, since the quantities of electricity traded on the Nord Pool exchange are vast, measurable in Megawatt hours (MWh) rather than Kilowatt hours (KWh) and change on an hourly basis, it is impossible to accurately forsee electricity prices after this liberalisation, the Eesti Energia website went on.
If a householder does not indicate a preference as to supplier after January 2013, they will not be cut off but rather their electricity will be supplied by a ‘universal service’ based on the average power exchange price from the previous month, the Eesti Energia website states.
Naturally, the increased competition and range of choice available to customers suggests more competitive prices being offered in electricity supply in the future, although electricity prices on a global scale are increasing.
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