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CUSTOMERS’ SATISFACTION DETERMINES COMPANY’S VALUE

ELECTRICITY MARKET

Estonian electricity market was opened in 2006 only for industrial consumers and for the period 01.04.2010 until 31.12.2012 Estonian electricity market was opened by 35%. Starting from 01.01.2013 Estonian market has been opened for all market participants in Estonia.

In April 2010 Nordic power exchange (PX) Nord Pool Spot extended to Estonia, creating day ahead (Elspot) price area firstly named “Estlink” (currently Estonia “EE” price area). Since 19.10.2010 Estonia has joined the intraday trading market Elbas.

Expansion of PX Nord Pool Spot to Baltic countries was possible owing to the connections between Baltic and Nordic countries.

Today Estonia has interconnections with Finland (1,000 MW), Latvia (about 600 MW) and Russia (about 900 MW). Strong interconnections with neighbours have our southern neighbours Latvia and Lithuania. By the end of 2015 in Lithuania have been completed additional interconnections between Lithuania and Sweden (700 MW) and Lithuania and Poland (about 500 MW). All these interconnections give the three Baltic states access to a much larger and more diverse electricity markets in different parts of Europe, which promotes competition and better prices.

Estonia itself has a strong production potential, which permits to cover its customers' needs. According to information received from System Operator Elering AS, Estonia is able to cover its own demand by domestic production up to 2023, including years with extremely cold winters accompanying with 10% extra demand.

The great importance for Estonian electricity market development was the fact of implementation of Data Warehouse, managed by the System Operator Elering AS. The Data Warehouse brings together all needed information regarding electricity sales and network contracts and becomes the Bank of measurement data of all market participants.

In the near future Estonian electricity market further developments favours the fact that by the end of 2016 all non-remotely read electricity meters will be replaced by the new remotely read meters for all customers across Estonia.

In the next stage, Estonian electricity market developments will be affected by initiative of System Operators of Baltic countries to join the Nordic balance market scheduled for 2018.