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Electricity Market
Sector structure
Upstream The sector is largely dominated by state-owned vertically-integrated company Eesti Energia AS.

AS Narva Elektrijaamad and AS Eesti Põlevkivi are the legally unbundled entities within Eesti Energia AS respectively engaged in generation and oil shale production.
Eesti Energia AS share accounts for 96% of total installed capacity: it owns Narva Power Plants and a number of CHP Plants. Remaining capacity set up by eligible customers.

Electricity trading with eligible customers through bilateral contracts. Eesti Energia is by far the major trader supplying the vast majority of eligible customers. AS Narva Electrivòrk is competing trader, supplying few eligible customers through imports from Lithuania.
Networks Legally unbundled company OÜ Põhivõrk (the National Grid) is the nation-wide transmission system operator on Regulated TPA basis.

41 distribution companies (DSOs).
OÜ Jaotusvõrk (Distribution Network), is legally unbundled from Eesti Energia AS on fulfilment of Energy Act obligations.
Downstream OÜ Jaotusvõrk is by far the largest DSO. Ten middle-size companies and 31 small and very small DSOs are also active.

Eligibility threshold set at 40 GWh/y. Market opening degree currently around 10%.

Non-eligible customers supplied by DSOs at regulated price. Competitive retail market is not in place yet.
Gas Market
Sector structure
Upstream Vertically-integrated AS Eesti Gaas is the dominant player in the Estonian natural gas market. It is fully private, the majority shareholders being Gazprom, Ruhrgas and Fortum.

There is no domestic production. AS Eesti Gaas and AS Nitrofert (enterpriser) are licensed importers of natural gas. Gas is imported from Russia and from the Inchukalns underground gas storage in Latvia.
Networks Legally unbundled company AS EG Võrguteenus is the transmission system operator in Estonia. Mere accounting separation is in place between distribution network and supply.

31 DSOs are present in Estonia.
Downstream Currently 100% degree of market opening since 1 July 2007. The greatest part of demand represented by district heating, power generators in CHPs and larger gas customers. Remaining demand represented by industrial and non-eligible customers.

AS Eesti Gaas is the dominant supplier (more than 90% of market). Remaining 25 small-scale privately-owned DSO each serving less than 1,000 customers.
Current issues Electricity Regional Initiative – Baltic Electricity Market

Transitional period for market opening according to EU Directives (electricity market is going to be partially (35%) opened by 2009 and completely opened by 2013)

Harmonisation of energy framework according to EU directives
National Legislation Natural Gas Act
Electricity Market Act
Sources Estonian Energy Market Inspectorate