Energy Act

According to the amendments of the Energy Act, enforced in July 1998, an energy company dominating the market (regional electricity distribution company or transmission system operator) was required to purchase electric power from power producers connected to its network and who produced such power from water, wind or solar energy or biofuel.

The purchase price of alternatively produced electric power was priced at 90% of the basic rate for residential customers, provided that the sales volume of alternatively produced energy in Estonia did not exceed 2% of the amount of electric power utilised in Estonia during the previous year. If the sales volume of alternatively produced electric power exceeded the 2% mark, the Estonian Energy Market Inspectorate had the authority to set a sales price for the network operator of between 60-90% of the basic rate for residential customers.

In July 2003, the Energy Act was repealed and the Electricity Market Act came into force.

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