No. 47




Is It Feasible to Separate the Distribution Network from Eesti Energia and Connect it to the Transmission Network?

07 June 2023


RiTo No. 47, 2023

In May 2022, KPMG and Finantsakadeemia were given the task of dealing with the issue further, including forecasting the financial and economic impacts of this option on the relevant businesses, as well as examining the related legislative-regulatory background.

As a result of the analysis, it was concluded that there are no obstacles arising from the Commercial Code or the Competition Act to the separation of the distribution network from Eesti Energia AS, connecting the distribution network with the transmission network and the separation of the system operator from Elering AS. However, the Electricity Market Act in its current wording may constitute an obstacle.

The analysis also revealed that the terminology of the Electricity Market Act, Regulation (EU) 2019/943 and Directive (EU) 2019/944 is not mutually consistent.

Common terminology is important for different reasons. If everyone has a common understanding of concepts and terms, the risk of confusion and misunderstanding is reduced.

A common terminology helps avoid legal uncertainty, errors of interpretation and disputes that can arise when different words are used in legislation to express the same meaning. This is essential for ensuring legal clarity and precision, effective implementation of legislation and avoiding legal disputes.