OREANDA-NEWS. March 22, 2010. With two weeks to go before the electricity market opens up, Eesti Energia’s sales agreements signed with major consumers represent 63% of the market volume. The amount of electricity to be sold in April under the agreements is 105 gigawatt-hours.

“In the open market, customers can switch power sellers as of the beginning of every month with 15 days advance notice provided to the network operator. Major customers could select their power seller for April up until yesterday. Starting today, major customers have until the end of March to sign an agreement with their existing power seller. Together with such customers, the share of Eesti Energia’s agreements on the open market could reach 80%,” said Eesti Energia management board member Margus Rink. For customers who do not sign an open-market electricity agreement by the end of March, the network operator will continue sale of electricity at the balancing energy price, which cannot be predicted and will presumably be the highest price in the market,” said Rink.

When they sign an agreement for the sale of electricity, major customers can choose to either fix the price and thus protect themselves from fluctuation of the price on the power exchange, fix the price partially, or buy electricity at the price that takes shape on the market. To this point, companies have preferred agreements with a fixed price until the end of the year.

As of 1 April, about 230 major customers – i.e. those that consume up to 2 gigawatt-hours per year in one location – must buy their power on the open market. From that point on, the price of electricity will not be regulated on the state level for major customers; it will depend on the electricity market price. Pursuant to valid legislation, state regulation will remain in effect until 2013 for the price of electricity for small and medium-sized enterprises and households.