The document discusses the state of electricity market liberalization in Estonia. It notes that in January 2014, 20% of customers did not have electricity contracts. It also discusses the growth in the number of electricity sellers, with 52 total offering over 110 different package options. However, the document states that price differences between packages have a minimal effect on customer bills, with less than a 2% change in contracts in 2013. It concludes that while Estonia's electricity market is developing, competition and customer interest in comparing offers remains low for now due to its regional nature but will improve with further interconnectors.

1. Riga, March 2014
Tiiu Müürsepp
Tartu Consumer Advice and Information Centre,
Estonia

2.  Were we ready for opening?
 How to evaluate?
 Should it be the number of contracts’ contractors
for that?
 If so then Estonia was phenomenal in January
20% customers didn’t have the electricity contract

3.  The competition and alternatives are grown
 There was 7 now 8 big electricity sellers for the
customers in the market (all together 52 electricity
sellers in Estonia)

4.  Contract options are:
 Fixed
 Combined 50% 50%
 Exchange
 Green
 We have now more than 110 packages

5.  the customer can agree on a price for six months,
one year, two years and three years by fixed and
combined packages
 the contract are open ended by exchanged term

6.  We have the universal service for that customers
who didn’t sign the contract
 That people are the customers who use electricity
in very small amounts and vulnerable customers
 that was the most expensive choice in 2013
 Eesti Energia reduced universal service to the
most favourable level in January 2014

7.  electricity sellers' price offers are increasingly
associated with the electricity consumption of the
customer's household
 Therefore is important that the customer should
task a personal price offer from sellers
 general price lists, newspaper articles, price
comparison portals are not the places to look for a
personal price offer.

8.  Electricity contracts can be changed and re-signed
at any time, and many of our customers
have used this option. The customers only have to
consider that if they want their new electricity
package or a different contract period to take
effect next month, then they should make the
necessary changes 21 days before the beginning
of the next month

9.  If customer wants to terminate a term electricity
contract early, then she/he has to terminate the
current contract in the contract detail view.
 Customer has to notify 30 days in advance

10.  The electricity price influenced by market opening
compiles approximately only one third from
monthly electricity bill,
 remain components: network operator fee,
renewable energy fee and tax are
not influenced by market opening
 Electricity price arised 23,6% on average last year
in Estonia

11.  If electricity seller and network operator company
are different then the customer have to pay 2 bills
 one for electricity and
 second for network operator service and other
fees.

12.  To help the customers to compare,choose and
sign the fairest electricity contract we have 3
private webpages www.energiaturg.ee ,
www.minuelekter.ee , www.elektrihind.ee
 But we don’t have any governmental one

13.  2013 year has shown that the price differences
between different packages and periods have
minimal effect on customer bill.
 The difference on customer electricity bill on the
basis of average consumption is less than a
euro.
 The price winning is little and don’t motivate to
change the contract

14.  Only 2% of home customers changed the
contract in 2013
 The opportunity of electricity sellers to influence
consumers with competition is small

15.  The electricity market was regional, electricity market wasn’t
finally open –
 the competition on the electricity market was low
and the interest of customers was low for
comparision of electricity packages
 But our electricity market is in developing
 It will be developed by opening Estlink2 (opened
07.02.2014), by Nordbalt: Lithuania-Sweden in 2016 and
Lithuania-Poland 2015-2016
 Also new capacities will be established in the next future

16.  But the number of customers who changed the
electricity seller was continously growing in 2013
 that number was lower than European average 10% it
was 2% in Estonia on 2013
 The number of customers on universal electricity
service was continously deminishing, in
September 2013 were 24% of customers and in
Dezember 2013 only 12% of customers on the
universal service

17.  Tiiu Müürsepp
 Tartu Consumer Advice and Information Centre
 Estonia
 tiiu.muursepp@gmail.com