ANNUAL REPORT 2010 - Konkurentsiamet

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During the course of the supervision proceedings, the Competition Authority came to the following conclusions: 1. AS Tallinna Küte has ensured the performance of the requirements set forth in § 7 subsection 3 and 4 and § 411 in the Lääne district of its network area (heat supply is organised from Mustamäe and Kadaka boiler plants), but in the Kesklinn-Lasnamäe- Maardu district (heat supply is organised from Ülemiste boiler plant, Tallinn Power Plant and the power plant Eesti Energia AS Iru Elektrijaam) the reserve fuel amount required by § 7 subsection 3, 4, § 411 of the District Heating Act is absent. 2. Eesti Energia Narva Elektrijaamad AS-s has properly carried out its obligations arising from § 7 subsection 3 and 4 and § 41 1 of the District Heating Act. 3. Eesti Energia AS-s Iru Elektrijaam has ensured the existence of reserve fuel pursuant to the requirements of § 7 subsection 4 and § 41 1 of the District Heating Act, but the heating undertaking does not guarantee the performance of obligations arising from § 7 subsection 3 of the District Heating Act in the meaning of § 34 subsection 1 of the Emergency Act, as an undertaking that supplies heat to the network and provides a vital service and is not able to ensure the consistent functioning of a vital service or resuming of the vital service after its suspension. Iru Elektrijaam has on its own side defined the period of transition to reserve fuel to be 24 hours which is too short and thus cannot be considered reasonable in an emergency situation. The Competition Authority ended the supervision proceedings relating to Eesti Energia Narva Elektrijaamad AS in the year <strong>2010</strong>, but continued the proceedings relating to AS Tallinna Küte and Eesti Energia AS Iru Elektrijaam. Disputes of market participants Resolution of disputes between market participants has been provided by the Electricity Market Act as well as in the Natural Gas Act. In the district heating sector, the Competition Authority can institute supervision proceedings in case a violation of the law by a heating undertaking is discovered. One of the major problems in the year <strong>2010</strong> was the suspension of a consumer’s network connection by a network operator. Suspension of the electricity supply has been regulated in great detail. It is the opinion of the Competition Authority that the protection of socially sensitive consumers upon the 47
emergence of solvency problems has been sufficiently ensured. A network operator may suspend a consumer’s network connection if the consumer has failed to pay the monetary amount due based on a contract entered into with the network operator or a contract entered into with a seller appointed by the network operator for the purposes of carrying out the sales obligation of the network operator, or if the consumer has otherwise severely violated an obligation laid down in the above mentioned contracts. Before the suspension of the network connection, the network operator is required to send a notice of the planned suspension. The notice must identify the reason for the suspension of the network connection as well as the planned time of the suspension. A consumer’s network connection may be suspended when at least 15 days have passed from the sending of the above mentioned notice and during that time the consumer has not removed the circumstance that constitutes the grounds for the suspension and informed the network operator correspondingly. If the network connection is suspended due to the reason that a consumer who is a natural person has failed to pay in due time for the consumed electricity as a result of severe illness or temporary insolvency caused by becoming unemployed, the consumer may submit a respective written notice of such circumstances to the network operator. The notice must be accompanied by a certificate substantiating the above mentioned circumstance. A network operator who has received a written notice and the substantiating evidence may suspend the network connection of a consumer who is a natural person when at least 30 days have passed from the moment of sending a notice to the consumer and during that time the consumer has not removed the circumstance that constitutes the grounds for the suspension of the network connection and informed the network operator correspondingly. If the network connection is suspended due to the reason that a consumer has failed to pay in due time for the consumed electricity, then the network connection may be suspended during the period from 1 October to 30 April in a building or a part thereof that is a dwelling, and that is used as a permanent residence and heated fully or predominantly by means of electricity only after at least 90 days have passed from the moment of sending the notice to the consumer and during that time the consumer has not removed the circumstance that constitutes the grounds for the suspension of the network connection and informed the network operator or the seller correspondingly. If a consumer has failed to pay for electricity in due time, the network operator is entitled to limit the capacity of the 48
Page 1 and 2: ANNUAL REPORT Estonian Competition
Page 3 and 4: CONTENTS FOREWORD .................
Page 5 and 6: een removed and the market is not d
Page 7 and 8: ORGANISATION Structure In 2010 the
Page 9 and 10: Officials with up to 10 years of pu
Page 11 and 12: from different sectors and competit
Page 13 and 14: approval to easily exclude simple d
Page 15 and 16: Price regulation conducted on the b
Page 17 and 18: A participant in anti-competitive a
Page 19 and 20: vertical agreements related to the
Page 21 and 22: procedures for timber transportatio
Page 23 and 24: management facilities. However, man
Page 25 and 26: with the operation of the operator
Page 27 and 28: estrictions may cause a decrease of
Page 29 and 30: several operators would like to pro
Page 31 and 32: percentage on the electricity invoi
Page 33 and 34: The breakdown by types of concentra
Page 35 and 36: market to the extent of 35%, meanin
Page 37 and 38: according to the eligible consumer
Page 39 and 40: Activation of the NPS Eesti bidding
Page 41 and 42: treatment in a similar and uniform
Page 43 and 44: sales. If in most district heating
Page 45 and 46: As the primary concern in Estonia i
Page 47: correspond to the conditions provid
Page 51 and 52: to the approval of water service pr
Page 53 and 54: FIGURE 5 Division of the total turn
Page 55 and 56: these market participants has decre
Page 57 and 58: degree. Elion has significantly inc
Page 59 and 60: The following significant developme
Page 61 and 62: In the year 2010, Elion was an unde
Page 63 and 64: FIGURE 15 Change of the number of f
Page 65 and 66: Authority has proposed to declare A
Page 67 and 68: POSTAL SERVICES The year 2010 did n
Page 69 and 70: delivered to the addressee a day la

ANNUAL REPORT 2010 - Konkurentsiamet

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