The state separates the transmission network from Eesti Energia

Minister of Economic Affairs and Communications Juhan Parts set up a committee on Friday which will prepare the separation of the transmission network from AS Eesti Energia.
“We have set the objective of taking over the transmission system operator Elering OÜ (with the former name OÜ Põhivõrk) from Eesti Energia 100% to direct state ownership by 2010 at the latest. This should be done in a balanced manner in order to achieve a well-functioning electricity market,” added Parts.
According to Parts, separation of the transmission network must not, however, significantly impair the financial capacity of Eesti Energia for making the expected large investments in electricity production which would ensure the required security of power supply. Also the investment capacity of the transmission network operator has to be ensured.
Parts added that the Estonian electricity market should surely be developed by bearing in mind the roles of both the future transmission system operator and Eesti Energia in the future integrated Baltoscandian market that will be developed.
The National Development Plan of the Energy Sector until 2020 has set the goal of creating preconditions to ensure as much as possible the adequate functioning the electricity market. According to Parts, one of the most important activities for the achievement of this long-term goal is to ensure the full independence of the electricity transmission system operator.
Representatives of the Ministry of Economic Affairs and Communications, Riigikogu, Estonian Competition Authority, Ministry of Finance, Eesti Energia and Elering OÜ belong to the committee. Taavi Veskimägi will be the Chairman of the Committee.
The Committee will present to the Ministry the method and time schedule for the separation of the transmission network by 31 August this year at the latest. After that date the committee will continue the provision of advice to the Minister of Economic Affairs and Communications for the implementation of the separation.
The state has set the objective of separating the transmission network from Eesti Energia by 2010 in the National Development Plan of the Energy Sector. Such separation is required by the directive on the common rules for the internal market in electricity, which has been developed in the framework of the EU Third Energy Package.
The main task of the transmission network is the transmission of electrical energy from producers to large industrial users and distribution networks.

Source: Estonian Ministry of Economic Affairs and Communications

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