TALLINN — Estonia’s parliament got a surprise Wednesday when the Reform Party rebelled against its coalition partner and voted down the Electricity Market Act along with the Social Democrats, Center Party and Greens.
The bill was submitted by the Ministry of Economic Affairs and Communications in October to allow Nord Pool, the Scandinavian power exchange market, to begin trading in Estonia. The measure is part of the Baltic Open Energy Market initiative being done in conjunction with Latvia and Lithuania, and includes privatizing 35 percent of Estonia’s market, currently dominated by Eesti Energia and separating that company’s production and distribution wings.
The vote prevents a third reading of the draft and could stall the project indefinitely if the Riigikogu doesn’t change its mind.
Minister of Economic Affairs and Communications Juhan Parts said he is disappointed and that hopefully Riigikogu will reconsider and go ahead with the draft reading.
“This is strategically important draft for Estonia with great investments standing behind it,” Parts told Baltic Reports. “Stalling with it would send a negative message to our partners.”
Parts, a former prime minister and chairman of the Res Publica Party, said that new oil shale plant investments, a new electricity connection with Finland, investments in renewable energy, and of course the power exchange launch depend on this draft.
“Opening the electricity market will connect us to the Nordic countries. If we want to be open but also independent from the East then we have to open our market to other countries,” Parts said.
Parts warned that if Estonia stalls, the European Union might question financing the sea cable Estlink 2, which would result in loss of 1.6 billion krooni (€102 million).
Just more time
However, Parts may not need to worry. Parliamentarian Rain Rosimannus of the Reform Party said that his party did not have a sudden change of heart, that the delay is simple because the Riigikogu needs more time to work on the draft.
“We notified the Union of Pro Patria and Res Publica on Monday that we need more time to discuss this,” Rosimannus told Baltic Reports. “As we’re deciding on billions of krooni worth of sponsorship, then most of the Riigikogu wishes more time to ensure that everything has been entirely considered.”
Rosimannus insisted that Nord Pool is coming and a longer discussion will not change that.
“Nord Pool is coming. A couple of weeks’ longer discussion won’t change anything,” Rosimannus said.
