ANNUAL REPORT 2010 - Konkurentsiamet

FIGURE 3. Monthly average electricity price in NPS Eesti in 2010
Regulation of electricity network operators
Pursuant to § 73 subsection 3 of the Electricity Market Act, a network operator has the
right to submit requests to the Competition Authority for the approval of different
network charges both collectively and separately. Pursuant to § 94 subsection 1 clause 8,
the Competition Authority must establish network charges of network operators, except
transmission charges for the transit of electricity.
Pursuant to the law, the criteria used as the basis upon the establishment of network charges
must be transparent and follow the principles of equal treatment. The price formation of
network charges must take into account the requirement to ensure supply dependability and
efficiency, allow network operators to carry out the obligations arising from legislations and
the conditions of activity licences, and allow a reasoned return on the invested capital.
Pursuant to on § 72 subsection 4 of the Electricity Market Act, the Competition Authority
has prepared and published “uniform methods for the calculation of electricity network
charges” (hereinafter referred to as the Methods), based on which the electricity network
charges are approved. The Methods are applied for the purposes of avoiding unequal
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