Overview of prices for regulated services

2023 was an active year for supervisory proceedings over the prices of regulated services. As fuel prices fell, the Competition Authority proactively sent out memoranda to undertakings to reduce regulated prices. In 2023, the total number of price proceedings was 298, plus responses to price-related inquiries. The biggest impact of the price drop was on the maximum prices of heat.

Postal sector

The year 2023 turned out to be a tumultuous one for the postal sector. If previously, two companies – AS Eesti Post and Express Post AS – were offering domestic home delivery and the forwarding of items of correspondence, Express Post AS ceased to provide the service in June 2023. So AS Eesti Post, operating under the Omniva brand, remained the sole provider of services involving the home delivery of periodicals and forwarding items of correspondence in the domestic market.

2023 Electricity and Gas Market Summary

 In 2023, electricity and gas prices were highly volatile. Such volatility was influenced by several factors, but difficult weather conditions, short- and long-term maintenance and repair work at production stations, as well as transmission capacity limitations both in Estonia and in neighbouring countries were the most important. In 2023, Estonia imported more electricity than it exported. Table 1 shows the import, export, domestic production and consumption of electricity in Estonia.

In numbers

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.

Launching the Electronic Price Calculation Information System

The aim of the Electronic Price Calculation Information System (HAI) is to make obtaining approvals for prices of monopolistic services (heat, water, gas and electricity network services) more efficient and transparent and to enable digital data processing. Currently, the information system allows applications for gas prices to be approved under the short procedure and for heat prices to be approved in network areas with a valid pricing formula.

About the Organisation

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.

Water reform 2025+

The Estonian water sector is facing a situation where European Union (EU) subsidies are decreasing, but to continue providing high-quality water and sewerage as a vital service, the sector still requires substantial investments. The Water Services Steering Group convened by the Ministry of Climate is determining how to reorganise the Estonian water sector. The roadmap is due to be completed in the second half of 2025 and the European Commission’s Directorate-General for Structural Reform Support provides technical assistance in implementing the project.