ANNUAL REPORT 2010 - Konkurentsiamet

correspond to the conditions provided in § 8 subsection 3 of the District Heating Act and
has failed to carry out an injunction of the Competition Authority.
In addition, the regulation of § 14 1 of the District Heating Act deserves special attention, as
it allows heat producers and network operators in the future to enter into contracts with
validity periods of up to 12 years from the beginning of production with certain production
equipment in order to ensure investment security. It is important that the entry into such
contracts requires the organisation of a competition, the winners of which are awarded with
the contracts. This ensures that heat producers or network operators enter into contracts for
ensuring investment security with the best price, in order to guarantee a safe, reliable,
efficient, reasonably priced heat supply that matches the environmental requirements and
the needs of the consumers.
Supervision proceedings relating to storage of reserve fuel
Based on § 28 subsection 1 of the District Heating Act, the Competition Authority
instituted supervision proceedings in December 2009 relating to the performance of § 7
subsections 3 and 4 and § 41 1 of the District Heating Act. Based on § 7 subsection 3 of the
District Heating Act, a heat producing undertaking whose estimated annual production
volume exceeds 500,000 MWh per network area is a provider of a vital service in the
meaning of the Emergency Act and therefore required to ensure a reserve fuel capability
for the production of heat, guaranteeing the heat supply for a period of three days.
Pursuant to the District Heating Act, calculation of the reserve fuel quantity is based on the
maximum daily consumption of the previous year. The heating undertaking must have
ensured a reserve fuel capability for the production of heat starting from 1 July 2008. The
objective of the instituted supervision proceedings was to identify whether the heating
undertaking mentioned in § 7 subsection 3 of the District Heating Act carry out their duties
arising from the District Heating Act.
Pursuant to § 7 subsection 3 of the District Heating Act, there are three heating undertaking
in Estonia (AS Tallinna Küte, Eesti Energia AS Iru Elektrijaam and Eesti Energia Narva
Elektrijaamad AS) whose annual heat production volume exceeds 500,000 MWh per
network area. Therefore, these undertakings are required to ensure the existence of reserve
fuel and the capability of its use for the production of heat.
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