Estonia Opposes State Regulation Of Electricity Prices

Estonian Prime Minister Kaja Kallas has spoken out against the idea of state regulation of electricity tariffs, which continue to rise.

« I am a staunch supporter of freedom and a supporter of a free market economy, » Kallas said on Wednesday, speaking to MPs.

Of the European countries, only Bulgaria and Hungary have cheaper electricity than in Estonia today, the prime minister said.

« What does it depend on? It has to do with the fact that our surcharges on electricity prices, in the form of network charges or renewable energy fees, have not been as high as in other European countries. But I admit that this is small consolation for people who are now feeling the rise in electricity prices on their own skin, » Kallas said.

The Prime Minister added that the electricity exchange price depends on production in Scandinavian countries and Finland, and this price fluctuates greatly. The market prices of electricity sold in Estonia are formed on the Nord Pool, which brings together the Baltic and Nordic markets. The increase in electricity prices is caused by a number of factors, including the rise in the price of fossil fuels and CO2 emission quotas.


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