In 2024, the average exchange prices in the electricity and natural gas market decreased. The annual average exchange price of electricity in the Estonian price area was 87.27 €/MWh (90.78 €/MWh in 2023). The average natural gas exchange price in the Estonian price area in 2024 was 37.09 €/MWh (45.72 €/MWh in 2023).
The Competition Authority conducted an analysis of the impact of price regulation metrics from 2021 to 2023, a period marked by major changes in the energy sector. In the last months of 2021, Estonia was hit by an energy price shock, which continued to be acute and extreme in 2022, and a certain stabilisation trend only started in 2023. The period was characterised by very high volatility in electricity prices, a doubling of CO2 prices, as well as an extreme price increase in the natural gas market, along with security of supply issues associated with various fuels.
Changes in the prices of monopolistic services, especially in the energy sector, have a significant impact on overall price changes in the economy (such as the consumer price index (CPI)). For example, a 5% price change in district heating in the capital had an effect on the CPI of one-tenth of a percentage point, and a similar impact was observed in the price of electricity network services.
Therefore, the proactive actions of the Competition Authority towards companies operating in regulated markets are crucial, particularly to ensure that the decline in fuel and electricity input prices reaches consumers of monopolistic services without significant delays.
In 2024, AS Eesti Post’s licence for the provision of universal postal services (UPS) expired and the Competition Authority organised a public competition to select a universal postal service provider. There was only one bidder in the competition – AS Eesti Post, who will now provide universal postal services in Estonia until 8 October 2029.
The affordable price for universal postal services is determined by a regulation of the minister in charge of the policy sector and is valid throughout the country, regardless of the location of the service user. On 13 December 2024, the Competition Authority made a proposal to the Minister of Regional Affairs and Agriculture to change the affordable price for universal postal services.
Subtopics:
2024 electricity and gas market summary
Trends in regulated markets 2021–2023