Eesti Energia's comment on the interim relief applied with regards to the Nelja Energia deal

15.11.2018

In connection with the interim relief applied on a temporary basis with regards to the Nelja Energia deal, Eesti Energia explains that Enefit Green completed the acquisition of Nelja Energia on 6th November 2018 by acquiring 100% of the shares of Nelja Energia after obtaining merger clearance from the Estonian Competition Authority. Consequently, the merger of Enefit Green and Nelja Energia was completed before the submission of the complaint by Skinest, and the implementation of the interim relief by the court on the basis thereof.

The court has given the Estonian Competition Authority and Enefit Green along with Nelja Energia time to submit their positions by November 19th. After examining the positions, the court will decide whether to hear Skinest’s complaint or not.

The Competition Authority has thoroughly analyzed the acquisition of Nelja Energia by Enefit Green. The merger review proceedings lasted for five months, during which time the Competition Authority gathered information from competitors, customers, as well as other market operators, and assessed the impact of the deal on the competitive situation. According to the information above, we are confident that the merger approval given by the team of the Competition Authority was not a superficially made decision. Of course, we will provide the administrative court with all the necessary clarifications and we hope that decisions will be made quickly.

Estonia has set ambitious renewable energy targets for itself, where we want to achieve 50% of the final consumption amount of electricity to be produced from renewable energy sources by 2030. This is a signal for all developers in Estonia and elsewhere that existing and new developers are expected to start implementing their projects. There are no state borders in this sector. Unfortunately, as the present and also the previous controversies show, developers of renewable energy competing with Eesti Energia have the position that Eesti Energia does not have the right to develop renewable energy. It does not support the national ambitious goal in any way.

Renewable energy is the same energy as energy produced from other sources. Eesti Energia has been producing electricity from renewable energy sources for 16 years already. The owner has set clear expectations for Eesti Energia and, Eesti Energia's strategy is based on it. As early as 2022, Eesti Energia wants to increase the amount of electricity produced from renewable and alternative energy sources to 40%. It also supports the achievement of Estonia's long-term renewable energy targets.