State to increase electricity market competition with distribution reform

On Thursday, the government approved amendments to laws, which should force electric grid distributors to open larger competition in the electric market, opening distribution options and allowing greater competition in the electric vehicle loading infrastructure field.

“Primarily, it is directed toward our electric market being as transparent as possible and for all parties involved in the market to have equal opportunities to participate in the market and do their actions,” said Minister of Economic Affairs and Communications Taavi Aas (Center) at a press conference on Thursday.

“If we are talking about specific things this change will bring, then primarily it gives better opportunities to produce electricity in sparsely populated areas, /…/ increasing the flexibility of networks, so that network companies would acquire more services from other providers, from a large circle of service providers and not just from the same company’s associates. There are also restrictions on network companies, which are dealing with charging points and electricity production points,” the minister explained.

“We know grid distributors always have a certain advantage over other parties in the market. With this amendment, restrictions are imposed on distributors, in simple terms, grid companies cannot offer services, such as charging points, on their own,” Aas noted.

Grid distributor cannot own charging points

Stemming from an EU directive, the amendments to the Electricity Market Act and State Assets Act will change certain conditions on the distribution market to ensure equal competition, said Ministry of Economic Affairs and Communications spokesperson Kadri Laube.

Read more: ERR.EE

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