Parts replied to interpellation concerning electricity price
The Minister of Economic Affairs and Communications Juhan Parts replied to the interpellation concerning the price forecast by Elering Ltd (No 37), submitted by Members of the Riigikogu Lembit Kaljuvee, Deniss Boroditš, Aivar Riisalu, Aadu Must, Tarmo Tamm, Yana Toom, Vladimir Velman, Kalev Kallo, Mihhail Stalnuhhin, Peeter Võsa and Viktor Vassiljev on 16 June.
According to Parts’s explanations, nearly all issues have been resolved to avoid Estonia becoming an “island” as regards energy. He pointed out the investment into Estlink 2. In Parts’s words, the project of Lithuania-Sweden link has passed from the stage of discussion and decision-making to the stage of realisation, and Lithuania-Poland synchronisation link for enabling Estonia to connect to the Central European electricity system is also becoming more realistic. The electricity stock exchange has been launched which is highlighted as a very important step by Estonia in the emerging Baltic-Nordic electricity market, said Parts.
According to the Minister’s explanations, for energy security considerations, the Estonian electricity sector development plan is based on the principle that we must have sufficient electricity production capacities so as to be able to ensure the state’s electricity supply at any time. In Parts’s words, according to the data of the European statistics office, Eesti Energia ranks the second in the European Union, after Denmark, in terms of independence. Considering the investments in power stations and boiler plants using local fuels, we may hold this ranking for a long time. Those blocks of Narva power station which do not comply with European Union environmental requirements will have to be closed by 2016. With the remaining blocks and the other power stations which are going to be built, it will be possible to cover the electricity demand of the whole Estonia. Considering Estonia’s very strong electricity connections, we are for the most part able to ensure our electricity supply in cooperation with our neighbours, noted Parts.
In answering the question as to what the electricity price will be in Estonia in five years today, Parts said: “I have avoided speculations on my part in respect of the open market price because there are a lot of variables affecting it. It is rather difficult to forecast all of them accurately.” He recommended definitely having a look at the Nordic electricity stock exchange, who has a similar experience, in the perspective of the last ten years and the pricing practices there. In Parts’s opinion it is clear that, roughly speaking, no matter what is used for producing electricity, the electricity price in the market, the production price in the market is still in one way or another in correlation with oil price. The Minister explained that, in the near future, the electricity price will depend much on CO2 price, the electricity price level in the Nordic countries and the electricity production developments in other Baltic states. Parts drew attention to the fact that, as of 2013, the electricity price will rise not so much due to the opening of the electricity market, but due to changing of the CO2 trading rules. As of 2013, in consideration of the high CO2 price, the current regulated price of oil shale electricity might rise to significantly exceed the price level in the Nordic electricity market.
In Parts’s opinion, we are now entering an economic space where definitely greater loads will be placed on very different economic sectors in Europe. Time will tell what the impact on the competitiveness of Europe on a wider scale will be, said the Minister.
Parts also replied to three more interpellations. They were the following:
the interpellation concerning the impact of completion of Koidula frontier railway station on local passenger train traffic (No 36), submitted by Members of the Riigikogu Inara Luigas, Deniss Boroditš, Mailis Reps, Aivar Riisalu, Lembit Kaljuvee, Tarmo Tamm, Kalev Kallo, Aadu Must, Viktor Vassiljev, Peeter Võsa, Mihhail Stalnuhhin and Ester Tuiksoo on 16 June;
the interpellation concerning allocation of 2635 million euro to private enterprises without a public procurement (No 38), submitted by Members of the Riigikogu Kalev Kallo, Lembit Kaljuvee, Aadu Must, Peeter Võsa, Viktor Vassiljev, Lauri Laasi, Priit Toobal, Olga Sõtnik, Jüri Ratas, Tarmo Tamm, Eldar Efendijev, Inara Luigas, Vladimir Velman, Deniss Boroditš, Valeri Korb, Mihhail Stalnuhhin, Heimar Lenk, Ester Tuiksoo, Marika Tuus, Aivar Riisalu and Yana Toom on 29 August;
the interpellation concerning issues concerning Eesti Post (No 40), submitted by Members of the Riigikogu Kadri Simson, Aivar Riisalu, Peeter Võsa, Valeri Korb, Deniss Boroditš, Lauri Laasi, Aadu Must, Jüri Ratas, Kalle Laanet, Tarmo Tamm, Enn Eesmaa, Inara Luigas and Mihhail Stalnuhhin on 15 September.
During the open microphone, Mihhail Stalnuhhin and Aivar Riisalu took the floor.
The Riigikogu Press Service
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