The primary task of the Supervisory Department of the Competition Authority is the investigation of anti-competitive agreements and undertakings in a dominant position on the market. In 2022, a large number of different cases were dealt with. The Annual Report describes in more detail the so-called dryer cartel case, which stands as one of the largest cases of its kind in the history of the Authority. The takeaway from this case under competition law is that competing undertakings cannot agree amongst themselves on non-competitive offers.

The Competition Authority participates in the work of working groups and associations in different fields of activity. The majority of international communication takes place through cooperation networks and organisations, but also in the form of bilateral relations. The Competition Authority also cooperates with the authorities responsible for the prevention of unfair commercial practices designated by the Member States of the European Union and the European Commission to prevent unfair commercial practices.

2022 was a diverse year for international cooperation in the field of competition. The agency was highly involved in the work of the European Competition Network (ECN), actively participating in numerous virtual and on-site meetings of subgroups and working groups held in Brussels or Member States.

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 area of government of the Ministry of Justice.

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The Competition Authority is developing measures to eliminate discriminatory or otherwise unfair treatment in the rail services market. It is also one of the important tasks of the Competition Authority to deal with complaints made by railway undertakings.

The postal sector has been characterised by changes linked to digitisation, which have gained momentum in recent years. There has been a gradual but significant decline in the use of traditional mail. Forwarding of shipments is increasing as e-commerce volumes grow.

There is no competition in water supply and the price is coordinated by the Competition Authority. A water company is a company with a very strong monopoly over an important resource. In view of the legislation, the water network is to a certain extent similar to the electricity network – it is not reasonable to build a parallel network and there are very few examples of competing pipelines. In addition, the local authority determines the water company on its territory.

Unlike the price of electricity and gas, the price of district heating is not determined by market conditions but by the Competition Authority. District heating consumption in Estonia is 4,200 GWh per year. There are 159 district heating districts with a maximum heat price approved by the Competition Authority, of which 125 have a sales volume of less than 10,000 MWh per year. 

Consumption of natural gas in Estonia in 2021 was 5,089 GWh/year⁽¹⁾, of which 9% or 468 GWh was consumed by households. Gas consumption in Estonia has been falling over the years and, due to the high price of gas, a further decline in consumption and a switch to alternative energy sources can be expected. Unlike in Western Europe, natural gas does not play such an important role in heating buildings. District heating is the most common form of heating in Estonia, where the use of gas has declined over the years and, at the high prices of today, will continue to do so.