Enefit’s sales up in the Latvian electricity market

In the first six months of 2009, Eesti Energia’s Latvian subsidiary Enefit SIA sold 168 GWh of electricity to 120 Latvian companies, accounting for 6% of all electricity consumed in Latvia during this period.

According to member of the Enefit SIA management board Aivar Tihane, the company has been successful in the Latvian market but wishes to increase its market share even further in the near future. “Enefit’s advantage is its parent Eesti Energia’s strong production portfolio, the value of which is being increased by actively participating on the wholesale market. We are able to satisfy companies that desire a stable electricity price for very long periods, and we are also trail blazers with regard to offering various open market solutions,” said Tihane.

According to Tihane, the current Latvian electricity market can be characterized by active competition between two large companies, Enefit and Latvenergo, with no new significant players having entered the fray. When the Estonian and Lithuanian markets open up, the situation on the electricity market will undoubtedly become more dynamic – competition will expand across national borders within the Baltic states, and the enlarged market region may come under heightened attention from strong pan-European energy companies.

Enefit SIA is Eesti Energia’s subsidiary in Latvia and is engaged in supplying electricity to Latvian end consumers, offering balance provider services to companies that generate electricity as well as supplying services to corporate customers as a hedge against risks from fluctuations in the price of electricity. Enefit’s customers in Latvia include such well-known large corporations as Latvijas Balzams, Severstallat, and Valmiera glass fibre factory VSŠ, food manufacturers such as Cido and Pure Good, and all of the country’s largest breweries.

Eesti Energia is an international energy company whose asset portfolio includes companies from one end of the energy chain to the other, ranging from fuel exploration to sale of electricity. The company is also involved in producing liquid fuels from oil shale. In the second quarter of 2009, Eesti Energia exported 482 GWh of electricity.