Annual Report 2023

Dear Reader,

It is a pleasure to present the Competition Authority’s 2023 Annual Report. Here you will find a comprehensive overview of our efforts and achievements in the past year to protect open markets and ensure fair pricing in Estonia.

In 2024, we will focus on enhancing competition supervision, especially in areas where the Authority conducts both regular and special market analyses. Additionally, we have made a strategic decision to engage in activities aimed at raising awareness and increasing competencies. We have opened our own in-house Competition Academy, which primarily aims to develop internal skills and expertise.

The Competition Authority exercises state supervision over competition, electricity, natural gas, district heating, mail, public water supply and sewerage, as well as railways, aviation and ports, and unfair trading practices. The office belongs to the area of government of the Ministry of Justice.

2023 was just as intense a year in terms of regulated markets as 2022, although the energy crisis was coming to an end. A total of 1,055 administrative proceedings were conducted or measures taken within the framework of regulation procedures, of which the largest share was responding to various complaints and inquiries. The area of price regulation focused on proactive price supervision, where undertakings were actively urged to reduce prices for regulated services.

In contrast to 2022, the pervasive trend of 2023 was the reduction in energy prices.

The keywords characterising the supervision exercised in 2023 are increased proactivity of the Authority and more active intervention in the focus topics of the respec

An important aspect of the Competition Authority’s work is the analysis of datasets to identify trends and connections. In 2023, two new analysts joined the organisation, and the Data and Economic Analysis Team was created under the Competition Division.

Several analyses were carried out during the year, the largest of which were the analysis of the pharmacy reform and the market analyses of the fuel market and the electric car charging network launched in 2023.

On 1 July 2023, the new Public Water Supply and Sewerage Act entered into force, establishing the bases for planning, organisation and use, the rights and obligations of the state, water undertaking, local government and consumer, state supervision, and liability for violation of the requirements. The bill sets out the principles and bases of pricing the public water supply and sewerage services.

The Ministry of Justice has prepared a bill to transpose the European Union DireCtive 2019/1 (ECN+ Directive) to enhance competition supervision, which, as an important aspect, provides for the fining of undertakings outside offence proceedings.