Electricity Market Act¹

Passed 11.02.2003
RT I 2003, 25, 153
Entry into force pursuant to section 119

Chapter 1 GENERAL PROVISIONS 

§ 1.  Scope of application of this Act

 (1) This Act governs the generation, transmission, sale, export, import and transit of electricity and the economic and technical management of the power system. This Act prescribes the principles of the operation of the electricity market, based on the need to ensure an effective supply of electricity which is provided at a reasonable price and which meets environmental requirements and the needs of consumers, and the utilisation of energy sources in a balanced manner, in an environmentally clean way and with a long-term perspective.

 (2) The activities specified in subsection 1 of this section shall be carried out in compliance with the principles of cooperation, equal treatment and transparency.

 (3) Electricity undertakings shall facilitate activities performed by consumers for the purpose of conserving electricity.

 (4) The provisions of the Administrative Procedure Act apply to administrative proceedings provided in this Act without prejudice to the rules specific to this Act.

§ 2.  Planning for development of electricity sector

 (1) Every five years, the Ministry of Economic Affairs and Communications shall prepare a development plan for the electricity sector and submit it to the Government of the Republic for approval. The development plan shall contain the following information:
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 1) estimated electricity consumption for the next ten years;
 2) estimated generating capacity and transmission capacity which are necessary, for the next ten years, to ensure security of supply and diversity and effectiveness of energy sources, and to provide for estimated consumption and meet environmental requirements;
 3) an analysis of previous developments in the international electricity market and a forecast for the next five years;
 4) an analysis of the likely impact of environmental requirements on the development of the electricity market during the next five years;
 5) information concerning indicative targets for consumption of electricity produced from renewable energy sources as proportion of total consumption for the next ten years and the measures taken to achieve these indicative targets, together with an analysis of such information;
 5¹) an analysis concerning, for the next five years, the national potential for efficient cogeneration of heat and power, as well as possible obstacles and the measures to be implemented in order to realise the plans.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 6) an analysis for the next five years, by energy source, of the share of each energy source in total consumption and any likely changes in their share, and the impact of such changes on the electricity market, security of supply and the environment;
 7) information concerning changes that have occurred compared to the information set out in the previous development plan;
 8) a comparison of the forecasts made in the development plan prepared for the preceding period and of the actual situation;
 9) an analysis of the implementation of this Act and the legislation enacted on its basis;
 10) an analysis of any other issues relevant in the context of electricity supply.

 (2) At the request of the Ministry of Economic Affairs and Communications, the system operator and electricity undertakings shall submit to the ministry information which does not contain any trade secrets of the undertaking and which is necessary for the preparation of the development plan for the electricity sector, provided that the submission of such information is in compliance with the obligation to maintain the confidentiality of information as provided in this Act.

 (3) The Government of the Republic shall approve the development plan for the electricity sector and, taking its principles into consideration, make decisions concerning the drafting of new legislation, amendments to the legislation in force or the implementation of any other measures to achieve the objectives provided in this Act.

§ 3.  Terms

  [RT I, 28.06.2012, 1 – entry into force 08.07.2012]
The terms in this Act are defined as follows:
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 1) “emergency reserve power station” means a power station where electricity is generated in the case of an unexpected shutdown of a production capacity or net capacity of the system or of an electricity system of another country which is electrically connected to the system or in the event of a threat to the security of supply of the system;
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 1¹) “open supply” means the sale to a market participant of the total amount of electricity needed by the market participant or, in order to ensure the balance of a market participant, the sale to the market participant of an amount of electricity that the participant lacks in a trading period or the purchase from the market participant of surplus amount of electricity during a trading period;
[RT I, 28.06.2012, 1 – entry into force 08.07.2012] 2) “balancing electricity” means electricity which, for the purposes of maintaining a balance, is purchased and sold by the system operator on the basis of a balance agreement entered into with a balance provider;
 3) “balance” means equivalence between the amount of electricity purchased and/or supplied to the network by a market participant during a trading period and the amount of electricity sold and/or acquired from the network by the market participant during the trading period;
 4) “balance settlement” means determination of the balance in a manner which permits, during every trading period, to draw up a balance for a market participant, to ascertain the amount of open supply and, in the case of deviations from the balance, to draw up a corresponding report;
 5) “balance responsibility” means the obligation of a market participant to ensure that the amount of electricity purchased and/or supplied to the network by the market participant during a trading period is equivalent to the amount of electricity sold and/or acquired from the network by the market participant during the trading period;
 6) “balance agreement” means an open supply contract between the system operator and a balance provider by which the system operator undertakes to sell to or purchase from the balance provider the amount of balancing electricity necessary to maintain its balance during each trading period;
 7) “transmission” means the transport of electricity in the network;
 7¹) “power exchange” means an organised market for trade in electricity to be supplied on the same or next day or within the hour;
[RT I 2010, 8, 40 - entry into force 27.02.2010]
 8) “power station” means an operational assembly consisting of one or several generating installations which generates electricity, together with auxiliary equipment and civil engineering works;
[RT I 2007, 23, 120 - entry into force 01.05.2007]
 8¹) “power plant own consumption” means electricity which is required for the smooth operation of the power plant and of the facilities and equipment attached thereto, including the electrical and lighting systems, control, safety and monitoring systems, accumulation devices, emergency sources of power, pumps, ventilators, conveyors, electric motors of fuel loading and preparation equipment and electric heating systems;
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 9) “electrical installation” means an operational assembly of equipment, conductors and accessories used to generate, transmit, transform, meter, sell or consume electricity;
 9¹) “import” means the import of electricity from outside the European Economic Area or Swiss Confederation with the aim of selling or consuming electricity in Estonia;
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 10) “distribution” means the transmission of electricity via a distribution network;
 11) “distribution network” means a network which is not a transmission network;
 12) “remote reading device” means a metering device which records data regarding amounts of electricity by trading period and allows automatic transmission of such data without the need to physically access the metering device;
 13) “trading period” means the period of time set out in the grid code during which a market participant is required to maintain its balance;
 14) “line” means a part of a network that links specific points in the network;
 15) “connection point” means a specific, defined point where an electrical installation of a market participant and the network connect;
 15¹) “metering point” means a location where electricity passing through an electrical installation is measured;
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 16) “metering device” means an electricity meter together with instrument transformers and tariff switching devices;
 17) “fixed supply” means the sale to a market participant of a fixed amount of electricity agreed upon in advance for a trading period and of which the balance provider is informed in advance pursuant to the procedure established in this Act and the grid code;
 18) “sale” means the transfer of electricity to another person for a charge or without charge;
 19) “net capacity” means the maximum capacity that can be supplied to the network by a generating installation;
 19¹) “availability of net capacity” means the ability to supply net capacity to the network within 24 hours from the moment the corresponding order is issued by the system operator;
[RT I 2010, 8, 40 - entry into force 27.02.2010]
 20) “direct line” means a line which is located in the service area of a network operator and which lacks a direct connection to the network, but which may be indirectly connected to the network through an electrical installation of a producer or consumer and which serves to transmit electricity from a power station to another power station or to a consumer;
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 21) “transmission network” means a national network with a voltage of at least 110 kV together with connections that have a voltage of over 10 kV with networks of other countries and together with other electrical installations, including those operating on medium voltage, which are necessary to ensure the functioning, administration and development of the system as a whole and together with control, protection and communication systems which form a single economic entity;
[RT I 2010, 8, 40 - entry into force 27.02.2010]
 22) “regulating capacity” means the capacity purchased under contracts entered into by the system operator, which the latter uses to increase or reduce generation and consumption in accordance with this Act and the legislation established on the basis thereof and in accordance with contracts made by the system operator;
 23) “system” means a technical system for the generation and transmission of electricity, which is composed of power stations located in the territory of Estonia, of the network which connects the power stations to one another as well as consumers and the power systems of other countries, and the corresponding control, protection and communication systems;
 23¹) “place of consumption” means a connection point of an electrical installation of a market participant, or a number of connection points which are connected to each other through an electrical installation of a market participant;
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 24) “generation” means the production of electricity. For the purposes of this Act, generation does not include the generation of electricity by a generating installation which has a total net capacity not exceeding 100 kW and which is not connected to the system;
 24¹) [repealed - RT I, 28.06.2012, 1 – entry into force 08.07.2012]
 25) “generating installation” means an electrical installation intended for the generation of electricity;
 26) “transit” means the transmission of electricity under a contract whereby the parties to the contract do not consume or generate transmitted electricity in Estonia;
 26¹) “efficient cogeneration” means the generation of electricity by a combined power and heat production process which is based on the demand for heat energy and which ensures energy conservation in accordance with the requirements for efficient cogeneration;
[RT I 2007, 23, 120 - entry into force 01.05.2007]
 27) “control” means control of an undertaking as defined in the Competition Act;
 28) “security of supply” means the capability of the system to ensure that consumers are supplied with electricity in accordance with the requirements;
 28¹) “liquid biofuel” means liquid fuel derived from biomass and used for the generation of electricity;
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 29) “network” means an electrical installation or a part thereof designed to convey electricity to the connection point of a consumer or a producer;
 30) “grid code” means the legislation specified in section 42 of this Act;
 31) “network service” means a service specified in section 65(1) of this Act;
 32) “network connection” means an electrical connection between the network and another electrical installation;
 33) “connection to the network” means the establishment of a new network connection, or the modification of the conditions of consumption or any other technical conditions or an increase in the security of supply of an existing network connection;
 34) “use of a network connection” means the use of network services via a network connection;
 35) “transmission” means the conveying of electricity via a transmission network.

§ 4.  Maintaining security of supply

 (1) The Government of the Republic may implement measures with regard to all market participants to maintain the security of supply during a definite period of time if any of the following becomes evident:
 1) a factor endangering security of supply;
 2) scarcity of primary energy sources;
 3) danger to the life or health of persons or to the preservation of the network or any other electrical installation.

 (2) The measures specified in subsection 1 of this section may be implemented without observing the provisions of Chapters 3 - 7 of this Act if this is vital for ensuring the security of supply.

 (3) In the case specified in subsection 1 of this section, the Government of the Republic shall establish the grounds for the calculation of expenses incurred as a result of implementing the measures, as well as the list of persons who are required to pay compensation for such expenses and of persons who are entitled to compensation, and the extent of and procedure for the compensation of expenses.

 (4) In the case specified in subsection 1 of this section, the following measures may be applied:
 1) [repealed - RT I, 28.06.2012, 1 – entry into force 08.07.2012];
 2) imposition of an obligation to procure and store reserves of primary energy sources required for generation;
 3) suspension or restriction of the rights granted by this Act to producers or any other market participant;
 4) limitation or interruption of the supply of electricity to particular market participants;
 5) restriction or modification of the obligation to provide network services.

 (4¹) The Competition Authority may impose an obligation on the system operator to organise a competition for the creation of new production capacities, energy storage devices or energy efficiency/demand-side management measures if, on the basis of the report specified in section 39(7) of this Act, the capacity reserve of generating installations of the system falls below the capacity reserve established in the grid code as required in order to satisfy the demand for consumption or if this is necessary for the promotion, for the purpose of environmental protection, of new technologies which are in their in initial stages of development.
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 (4²) When organising a competition specified in subsection 4¹ of this section, the system operator shall observe the following requirements:
 1) a detailed and non-discriminating plan for financing of the construction of the generating installation must be presented in the terms and conditions of the competition;
 2) the terms and conditions of the competition must be published in Estonian and in English on the website of the system operator;
 3) the terms and conditions of the competition must contain a detailed description of the contract terms and of the procedure to be followed by all tenderers and an exhaustive list of criteria governing the selection of tenders and the award of the contract, including incentives which are covered by the tender;
 4) existing producers whose electricity supply offers have a long term guarantee may also participate in the competition;
 5) details of the competition shall be published in the Official Journal of the European Union at least six months prior to the closing date for tenders;
 6) confidentiality of the information contained in the tenders must be ensured.
[RT I 2007, 23, 120 - entry into force 01.05.2007]

 (5) The Government of the Republic shall promptly notify the European Commission and other member states of the European Union of any measures implemented under this section.
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Chapter 2 MARKET PARTICIPANTS 

Division 1 Types of market participant 

§ 5.  Market participants

  Market participants are electricity undertakings, consumers, balance providers and power exchange operators.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

§ 6.  Electricity undertakings

  Producers, network operators, line possessors and sellers are electricity undertakings.

§ 7.  Producer

 (1) A producer is an electricity undertaking engaged in the generation of electricity by means of one or several generating installations.

 (2) A small producer is a producer the net capacity of whose generating installations which are located in Estonia, together with the net capacity of generating installations located in Estonia and owned by producers belonging to the same group as the producer does not exceed 10 MW.

 (3) “Cogenerator” means a person who generates power in an efficient cogeneration process. Requirements for efficient cogeneration shall be established by the Minister of Economic Affairs and Communications on the basis of the methodology set out in Annex III to Directive 2004/8/EC of the European Parliament and of the Council on the promotion of cogeneration based on a useful heat demand in the internal energy market and amending Directive 92/42/EEC (OJ L 052, 21.02.2004, pp. 50–60).
[RT I 2007, 23, 120 - entry into force 01.05.2007]

§ 8.  Network operator

 (1) A network operator is an electricity undertaking engaged in the provision of network services through a network.

 (2) A transmission network operator is an electricity undertaking engaged in the provision of network services through a transmission network.

 (3) A distribution network operator is an electricity undertaking engaged in the provision of network services through a distribution network.

§ 9.  Line possessor

  A line possessor is an electricity undertaking which conveys electricity via a direct line or a direct current line which crosses the national border.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

§ 10.  Seller

  A seller is an electricity undertaking engaged in the sale of electricity.

§ 11.  Balance provider

  A balance provider is a person who, pursuant to the procedure provided in this Act and the legislation enacted on its basis, has entered into a balance agreement with a system operator in order to maintain its balance.

§ 11¹.  Power exchange operator

 (1) A power exchange operator is a person who, pursuant to an agreement entered into with the system operator, ensures the operation of a power exchange and the possibility of trading electricity at the power exchange.

 (2) A system operator shall conclude the agreement referred to under subsection 1 of this section with a person who has an experience of operating an international power exchange and provided that the annual sales of the power exchange operated by that person amounts to at least 50 TWh of in the case of an exchange trading in next-day electricity and at least 0.5 TWh in the case of an exchange trading in same-day electricity.

 (3) The power exchange operator shall establish rules of procedure for the power exchange to operate in a lawful and orderly manner and shall publish those rules of procedure on its website at least two months prior to the date the power exchange is to commence operation.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

§ 11².  Power exchange trader

 (1) A power exchange trader is a market participant whom the power exchange operator has authorised to trade on the power exchange by having entered into a corresponding agreement with the trader.

 (2) A power exchange trader can be any Estonian market participant to whom the requirement set out in subsection 75(1) of this Act does not extend or any market participant of another country whose system operator has entered into an agreement with the Estonian system operator to guarantee the supply of electricity of the market participant.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

§ 12.  Consumer

 (1) A consumer is a person who uses electricity for the person’s own purposes.

 (1¹) “Household consumers” means consumers using electricity for their own household consumption, excluding their commercial or professional activities;
[RT I 2007, 23, 120 - entry into force 01.05.2007]

 (1²) “Commercial consumers” means consumers who are not household consumers.

 (1³) “Small consumers” means household consumers, apartment associations, communities of apartment owners and such commercial consumers whose electrical installation is connected to the network by using low voltage and a main circuit breaker of up to 63A.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (2) For the purposes of this Act, a person who purchases electricity is deemed to be a consumer only in respect of the electricity that the consumer uses for the consumer’s own purposes.

 (3) A person who uses electricity generated for the power station’s own consumption shall not be considered to be a customer.
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§ 13.  Eligible consumer

 (1) An eligible consumer is a consumer who uses electricity at a consumption site on which through one or several connection points at least 2 GWh of electricity have been consumed within the calendar year. The said amount shall include electricity which has been generated and used at the consumption site of the eligible consumer.

 (2) As of 1 January 2011, an eligible consumer is a consumer who uses electricity at a consumption site on which the amount of electricity used within the calendar year through one or several connection points is at least equivalent to the amount to be determined by the Minister of Economic Affairs and Communications not later than by 30 September 2010 such that the total amount of electricity consumed by all eligible consumers during 2009 constitutes at least 35 per cent of total electricity consumption during that calendar year. Following the same principle, the Minister of Economic Affairs and Communications shall determine the amount of electricity required to be consumed by an eligible consumer for 2012 such that the total amount of electricity consumed by all eligible consumers during 2010 constitutes at least 35 per cent of total electricity consumption during that calendar year, and shall notify this to the European Commission.

 (3) As of 1 January 2013, all consumers shall be eligible consumers.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

§ 14.  Exercise of rights of eligible consumer

  Each year during the month of December a network operator shall ascertain the amounts of electricity consumed by consumers connected to its network. If a consumer meets the requirements established in section 13 of this Act, the network operator shall communicate a notice of this to the consumer within the first two months of the next calendar year and, if the network operator does not engage in selling electricity, also to the seller who performs the obligation to sell for the network operator. The notice shall not be communicated to a consumer who has already been informed of its compliance with the requirements established for eligible consumers on the basis of the data for a previous calendar.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

Division 2 Requirements for electricity undertakings 

§ 15.  Requirements with respect to form of operation and capital

 (1) An electricity undertaking is a public limited company or a private limited company which is registered in the Commercial Register or which is in the process of being incorporated.

 (2) The share capital of a network operator or of a line possessor who uses a direct current line which crosses the national border shall be at least 127,800 euros.
[RT I 2010, 22, 108 - entry into force 01.01.2011]

 (3) The share capital of a producer or seller shall be at least 31,950 euros.
[RT I 2010, 22, 108 - entry into force 01.01.2011]

 (4) Subsection 1 of this section shall not apply to a line possessor who uses a direct line.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (5) Subsections 1 and 3 of this section do not apply to producers and sellers who generate electricity at generating installations which they own and which have a total net capacity of less than 100 kW, and who sell the electricity generated by such installations.

 (6) Subsections 1 and 3 of this section do not apply to:
 1) a person who, outside its principal activities and within the boundaries of a building or immovable which belongs to or is entirely in the possession of the person, sells and conveys electricity solely to persons who are entitled to use the building or immovable by law, provided that the sale of electricity is not the principal activity of the seller;
 2) a non-profit organisation who sells and conveys electricity to its members solely for the purpose of supplying electricity to the apartments, cottages, garages or private dwelling houses which the members own or occupy.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

§ 16.  Unbundling of activities

 (1) If this Act does not prohibit an electricity undertaking from operating in several electricity-related or other areas of activity at the same time, the electricity undertaking shall keep accounts for its electricity-related and other areas of activity as well as for the different electricity-related areas of activity specified in sections 22(1)(2) to 22(1)(7) of this Act as would be required of separate undertakings operating in those areas of activity.

 (2) The operator of a transmission network or of a distribution network to which more than 100,000 customers are connected may not generate or sell electricity.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (3) It is not contrary to subsection 2 of this section for:
 1) the transmission network operator to perform the obligations set out in Chapters 3 and 4 of this Act;
 1¹) the operator of a transmission network to generate electricity in the emergency reserve power station in the event of an unexpected shutdown of the production capacity or net capacity of the system or of an electricity system of another country electrically connected to the system or in the event of a danger to the security of supply or when it is required for the purpose of periodical testing of the emergency reserve power station;
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 2) a network operator only to generate electricity to compensate for network losses;
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 3) other undertakings belonging to the same group as the network operator to operate in other areas of activity;
 4) [repealed – RT I 2004, 86, 583 – entry into force 01.01.2005]
 5) a network operator to sell electricity at a price approved by the Competition Authority or at the price at which electricity is sold in order to perform the obligation to sell set out in section 76 of this Act.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (4) A transmission network operator may not at the same time be a distribution network operator, or belong to the same group with any undertaking which engages in activities related to generating or selling electricity.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

 (5) The trade mark of the operator of a distribution network must be clearly distinguishable from that of an undertaking which engages in the generation or sale of electricity and which belongs to the same group as the operator of the distribution network if more than 100,000 customers are connected to the distribution network.
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§ 17.  Reporting and auditing

 (1) The Government of the Republic is entitled to establish additional, duly substantiated requirements for electricity undertakings regarding their accounts and the disclosure of their reports with a view to ensuring transparent reporting of the revenue and expenditure of electricity-related activities and of transactions between undertakings belonging to the same group.

 (2) An electricity undertaking shall include in its annual accounts an explanation of the principles of allocating expenditure among the electricity undertakings belonging to the same group. The principles may be amended by the electricity undertaking only in exceptional cases. Any amendments and the reasons for this shall be set out in the annual accounts.

 (3) An electricity undertaking shall present a balance sheet and a profit and loss account for each area of activity as annexes to its annual accounts.

 (3¹) A seller shall keep separate accounts in accounting for supply activities for eligible consumers until 31 December 2012.
[RT I 2007, 23, 120 - entry into force 01.05.2007]

 (4) An electricity undertaking shall arrange the auditing of its activities. In the report setting out the auditing results, the auditor shall, in addition to other information, present an opinion on whether the annual accounts of the electricity undertaking and its annexes comply with this Act and the legislation enacted on its basis.

§ 18.  Management of network operator

 (1) A member of the management board of a network operator may not at the same time be a member of the management board of another electricity undertaking belonging to the same group as the network operator or be otherwise, whether directly or indirectly, in charge of the everyday economic activities of another electricity undertaking which belongs to the same group as the network operator.

 (2) The prohibition provided in subsection 1 of this section also applies in respect of an electricity undertaking which does not belong to the same group as the network operator but which directly or indirectly controls or is controlled by the network operator in any other way.

 (3) It is not contrary to subsections 1 and 2 of this section to be, at the same time, a member of the management board of a network operator and a member of the supervisory board of another electricity undertaking that belongs to the same group as the network operator or of an electricity undertaking specified in subsection 2 of this section.

 (4) Any remuneration paid or any other benefit provided to a member of the management board of a network operator may not depend on the commercial performance of another electricity undertaking or a person who controls another electricity undertaking.

 (5) A network operator shall have the right to decide on the use of the assets necessary to maintain or develop the network without preventing the parent company from exercising the rights of economic and management supervision of the subsidiary.
[RT I 2007, 23, 120 - entry into force 01.05.2007]

 (6) A network operator shall prepare and implement a plan which lays out the measures necessary to ensure equal treatment of other electricity undertakings and consumers and sets out the obligations of the employees of the network operator to implement such measures. The network operator shall submit the plan to the Competition Authority.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (7) The plan mentioned in subsection 6 of this section is drawn up, its implementation is monitored, and the annual report concerning the measures taken to implement the plan is compiled by an employee who is appointed by a member of the management board of the distribution network operator, is directly subordinate to that member, is independent in compiling the report, and has access to the entirety of the data of the distribution network operator, and of any other undertaking belonging to the group of companies to which the distribution network operator belongs, in so far as these data are required for the performance of his or her task.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (8) A network operator shall submit its annual report to the Competition Authority and inform the Competition Authority of the availability of the report on its website.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

§ 19.  Notification requirement

 (1) A person shall notify the Competition Authority in writing if the person:
[RT I 2007, 66, 408 - entry into force 01.01.2008]
 1) acquires ownership of a network or a personal right to use a network;
 2) commences construction of a generating installation with a net capacity of over 1 MW, acquires a generating installation with a net capacity of over 1 MW or obtains direct possession thereof;
 3) acquires a direct line or a direct current line crossing the national border or a personal right to use one;
 4) acquires shares in a network operator, a line possessor or a producer who is in possession of generating installations with a net capacity of over 1 MW, as a result of which the person holds at least 50 per cent of the votes represented by shares at the general meeting of shareholders of the company, or if the person acquires control in any other manner of a network operator, line possessor or a producer who is in possession of generating installations with a net capacity of over 1 MW;

 (2) The notice specified in subsection 1 of this section shall be transmitted within ten days as of execution of the contract pursuant to which the person acquires the subject matter specified in subsection 1, comes into direct possession thereof or acquires a personal right to use it. If the subject matter specified in subsection 1 is acquired, or if its direct possession or use commences prior to the execution of the contract or without a contract, notice thereof shall be transmitted within ten days as of the acquisition or commencement of direct possession or use. The following information shall be included the notice:
 1) the location and characterisation of the network, line or generating installation, including the net capacity of and energy sources used by the generating installation;
 2) the name of the network operator, line possessor or producer specified in point 4 of subsection 1 of this section and its registration number in the commercial register;
 3) the name, personal identification code or registration number in the commercial register, and contact details of the person who acquired the network, line or generating installation or of the person who has acquired a personal right to use the same or entered into direct possession of the same or of the person who has acquired control or shares of the same;
 4) the legal basis for and material circumstances relating to the acquisition of the network, line or generating installation or of acquiring a personal right to use the same or of entry into direct possession of the same, or of the acquisition of control or shares of the same;
 5) any substantial changes in the forecast of economic activities.

 (3) The Competition Authority shall be notified without delay of the commencement or termination of any activity for which an activity licence is required pursuant to this Act.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

§ 20.  Guarantees of balance provider

 (1) A balance provider shall provide the system operator with bank guarantees which meet the requirements set out in the grid code and which secure the unconditional performance of all the obligations of the balance provider in respect of the system operator. Such guarantees are permanent guarantees and variable guarantees.

 (2) A balance provider shall provide a permanent guarantee in an amount prescribed in the grid code.

 (3) A balance provider shall provide a variable guarantee in an amount equal to the amount payable for the balancing electricity purchased by the balance provider within a period of time equal to one and a half times the period which is the basis for the money transactions related to the balance set out in the grid code (hereinafter, ‘transaction period’) and which precedes the provision of the variable guarantee or decision on amending the guarantee, less the amount payable for the balancing electricity purchased from the balance provider over the same period of time.

 (4) If it is not possible to determine the amount of a variable guarantee in the manner specified in subsection 3 of this section, the system operator shall determine the amount of the variable guarantee on the basis of the amount payable for the balancing electricity likely to be purchased by the balance provider over a period of time equal to one and half times the transaction period, less the amount payable for the balancing electricity likely to be purchased from the balance provider over the same period of time, and taking into account the economic reliability of the balance provider.

 (5) The system operator shall determine the amount of the variable guarantee to be provided by a balance provider and, if necessary, modify that amount pursuant to the provisions of subsections 2–4 and 6 of this section.

 (6) At the request of a balance provider, the system operator shall reduce the amount of a variable guarantee if the amount to be determined pursuant to subsection 3 or 4 of this section would, at the moment of reduction, be significantly lower than the amount last determined as the amount of the variable guarantee of the balance provider. The system operator shall increase the amount of a variable guarantee if the amount to be determined pursuant to subsection 3 or 4 of this section would, at the moment of increase, be significantly greater than the amount last determined as the amount of a variable guarantee for the balance provider.

 (7) A balance provider shall maintain any permanent or variable guarantee as valid in the amount prescribed in the grid code or determined by the system operator pursuant to this Act.

 (8) Detailed requirements for the provision of permanent and variable guarantees and for the determination of and making changes to the guarantee amounts shall be prescribed in the grid code.

§ 21.  Other requirements for balance providers

 (1) A balance provider must have means of communication which meet the requirements established in the grid code.

 (2) A balance provider shall enter into a balance agreement with a system operator.

§ 21¹.  Provider of a service of vital importance

  For the purposes of section 34(2)(1) of the Emergency Act, “provider of a service of vital importance” means:
 1) a producer whose power plant has a net capacity exceeding 200MW;
 2) a line possessor whose power line crosses the national border and has a transmission capacity exceeding 100MW;
 3) a transmission network operator;
 4) a distribution network operator who provides network services in a municipal area the number of whose residents is 10,000 or higher.
[RT I 2009, 39, 262 - entry into force 24.07.2009]

§ 21².  Requirements to ensure operational continuity of services of vital importance

 (1) A producer who provides a service of vital importance within the meaning of point 1 of section 21¹ of this Act shall ensure the performance on their premises of rescue operations required for operational continuity of the service and shall ensure that a rescue unit required for such operations is present.

 (2) For the purposes of this Act, rescue operations required for the operational continuity of the service means rescue operations that are unavoidable and urgent and that are carried out without delay on the producer’s premises upon the occurrence of a rescue event until the arrival of the rescue authorities.

 (3) Requirements for rescue units performing rescue operations specified in subsection 1 and the procedure for cooperation with the rescue authorities shall be established by a regulation of the Government of the Republic.
[RT I, 12.12.2011, 2 - entry into force 01.01.2012]

Division 3 Activity licence 

§ 22.  Activity licence

 (1) An activity licence shall be required:
 1) for terminating the exploitation of a generating installation which has a net capacity of over 1 MW;
 2) for the generation of electricity, except for generation by a producer using generating installations which have a total net capacity of less than 100 kW or generation that takes place pursuant to point 1¹ or 2 of subsection 3 of section 16 of this Act;
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 3) for the provision of network services through a distribution network;
 4) for the provision of network services through a transmission network;
 5) for conveying electricity via a direct current line crossing the national border;
 6) for conveying electricity via a direct line;
 6¹) [repealed – RT I, 28.06.2012, 1 – entry into force 08.07.2012]
 7) for selling electricity.
 8) [repealed – RT I 2010, 56, 363 – entry into force 01.11.2010]

 (1¹) An activity licence shall not be required for the activity specified in point 3 of subsection 1 of this section if the network services are provided pursuant to point 1 or 2 of subsection 6 of section 15 of this Act.
[RT I 2007, 23, 120 - entry into force 01.05.2007]

 (2) An activity licence shall not be required for the activity specified in point 7 of subsection 1 of this section if:
 1) electricity is sold pursuant to section 15(6)(1) of this Act;
 1¹) electricity is sold pursuant to section 15 (6) 2) of this Act;
 2) electricity that is generated using generating installations which have a total net capacity of less than 100 kW is sold by the producer of the electricity;
 3) electricity which is generated on the basis of an activity licence is sold by the producer to another electricity undertaking or to an undertaking which belongs to the same group as the producer, or is sold on a power exchange.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

 (3) An activity licence constitutes the right to operate in one of the areas of activity specified in subsection 1 of this section which is granted to a person by a decision of the Competition Authority, together with the conditions of the activity licence established for the exercise of that right in accordance with this Act. A person may have several activity licences to operate in several of the areas of activity specified in subsection 1 of this section, unless operating concurrently in those areas of activity is prohibited by this Act.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (4) An activity licence constitutes the holder’s right to engage in the respective activity. An activity licence cannot be assigned to another person.

 (5) An activity licence issued in respect of the activities specified in points 3 and 4 of subsection 1 of this section grants the holder the right to apply for a building permit for the construction of either a distribution or transmission network only in the service area set out in the activity licence and to use the network in that service area to provide network services.

 (6) Generating installations which use nuclear energy may be constructed and electricity may be generated by such installations on the basis of a resolution of the Riigikogu.

§ 23.  Application for activity licence

 (1) In order to obtain an activity licence, a person (hereinafter, ‘the applicant’) shall submit to the Competition Authority an application containing the following information concerning the applicant:
[RT I 2007, 66, 408 - entry into force 01.01.2008]
 1) name;
 2) address of the registered office and place of business;
 3) numbers of the means of telecommunication;
 4) registration number in the commercial register, unless the applicant is currently in the process of being incorporated;
 5) the name of the activity, as specified in section 22(1) of this Act, for which an activity licence is being sought and as precise a description of the activity as possible.

 (2) The following shall be annexed to an application specified in subsection 1 of this section:
 1) in the case of a company which is in the process of being incorporated, a certified copy of the memorandum of association or resolution of incorporation;
 2) a document containing information showing that the requirements provided in this Act or the legislation enacted on its basis concerning the applicant and the activity named in the application have been complied with.

 (3) At the request of the Competition Authority, an applicant must prove that all the requirements provided in this Act or the legislation enacted on its basis thereof concerning the applicant and the activity applied for have been complied with.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (4) The Competition Authority has the right to demand additional information from an applicant or any agency of the government or of a local authority if this is required to make a decision on the application, to verify the information submitted by the applicant, to determine whether the applicant complies with the requirements provided in this Act and the legislation enacted on its basis, or to verify the capacity of the applicant to perform the obligations prescribed in respect of the activity applied for in this Act and the legislation enacted on its basis.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

§ 24.  Application for activity licence for terminating the exploitation of a generating installation

  When a person applies for an activity licence for the activity specified in section 22(1)(1) of this Act, the person shall submit the following in addition to the information specified in section 23(1) of this Act:
 1) the technical specifications of the generating installation;
 2) information concerning what is to become of the generating installation and related buildings and civil engineering works;
 3) the time that the operation of the generating installation is to be terminated.

§ 25.  Application for activity licence for generation of electricity

  When a person applies for an activity licence for the activity specified in section 22(1)(2) of this Act, the person shall submit the following in addition to the information specified in section 23(1) of this Act:
 1) the technical specifications of the generating installation and information regarding the energy efficiency of the installation and security of supply;
 2) a description of the natural environment in and any other factors relevant to the location of the generating installation.

§ 26.  Application for activity licence for provision of network services

 (1) When a person applies for an activity licence for the activity specified in section 22(1)(3) of this Act, the person shall, in addition to the information specified in section 23(1) of this Act, submit a description and schematic layout of the service area in accordance with section 62 of this Act.

 (2) An activity licence for the activity specified in section 22(1)(3) or 22(1)(4) of this Act shall be issued to a person:
 1) whose organisation must be suitable to the extent and nature of the activity applied for;
 2) who employs a sufficient number of staff with the necessary qualifications;
 3) whose staff includes a person holding a certificate that shows him or her to be competent to be in charge of the electrical work specified in the Electrical Safety Act, and a supervisor of electrical installations;
 4) who possesses commercial prerequisites for operating in the area of activity applied for;
 5) who possesses other prerequisites necessary for operating in the corresponding area of activity in accordance with this Act and the legislation enacted on its basis.

 (3) An activity licence shall be issued for the activity specified in section 22(1)(3) of this Act if this is not in conflict with the provisions of section 60 and provided that the geographical area indicated in the application is suitable for the distribution of electricity.

 (4) An activity licence for the activity specified in section 22(1)(4) of this Act shall only be issued to one network operator.

§ 27.  Application for activity licence for transmission of electricity through a line

 (1) When a person applies for an activity licence for the activities specified in sections 22(1)(5) and 22(1)(6) of this Act, the person shall submit the following information and documents in addition to the information specified in section 23(1) of this Act:
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 1) maximum rated operating voltage of the line, the length of the line and other main technical specifications of the line;
 2) a layout of the location of the line;
 3) geographic coordinates of the line;
 4) in the case of the activity specified in section 22(1)(6) of this Act, a document certifying that the condition specified in section 61(1) of this Act has been fulfilled.

 (2) An activity licence for the activities specified in points 5 and 6 of subsection 1 of section 22 of this Act shall be issued if this is not contrary to the provisions of sections 60 and 61 of this Act.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

§ 28.  [Repealed – RT I 2010, 8, 40 – entry into force 27.02.2010]

§ 29.  Decision to issue activity licence

 (1) The Competition Authority shall, in accordance with the principles of equal treatment and transparency and the provisions of this Act and the legislation enacted on its basis, make a decision to issue or to refuse to issue an activity licence on the basis of an application submitted pursuant to this Act and of any information submitted additionally at the request of the Competition Authority,.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (2) The decision specified in subsection 1 of this section shall be made within sixty days as of receipt of the information and documents specified in subsection 1 of this section. Reasons must be given for the decision.

 (3) Before deciding to refuse to issue an activity licence, the Competition Authority shall send a corresponding notice to the applicant in which it states the reasons for refusal grants the applicant reasonable time for the elimination of any circumstances that prevent the issue of an activity licence.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (4) An applicant shall be notified of the decision to issue or to refuse to issue an activity licence in writing within three working days as of the making of the decision.

 (5) The Competition Authority shall enter the data specified in subsection 32(1) of this Act in the Register of Economic Activities (hereinafter, ‘the register’) within three working days from the day on which the relevant decision was made. The information concerning the location of the service area of a distribution network may be stated as a brief description. Disclosure of the information is subject to the provisions of the Register of Economic Activities Act.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (6) In the case that the Competition Authority refuses to issue an activity licence for the activity specified in section 22(1)(2) of this Act, it shall transmit a notice to this effect to the European Commission. The notice shall indicate the reasons for refusal to issue an activity licence.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (7) The state fee for the licence and for any amendment of the licence at the initiative of the holder of the licence shall be paid pursuant to the procedure and to the extent provided for in the State Fees Act.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

§ 30.  Refusal to issue activity licence

 (1) The Competition Authority shall refuse to issue an activity licence if:
[RT I 2007, 66, 408 - entry into force 01.01.2008]
 1) the applicant fails to submit the information required pursuant to this Act or submits misleading or inaccurate information or false documents;
 2) the applicant lacks the commercial and organisational prerequisites for the activity specified in the application or, for another reason, the applicant does not meet the requirements established for applicants and electricity undertakings in this Act or the legislation enacted on its basis;
 3) the activity specified in the application is not in accordance with the requirements of this Act or the legislation enacted on its basis;
 4) there is reason to believe that the applicant will not be able to perform the obligations prescribed by applicable legislation or comply with the conditions of the activity licence;
 5) the issue of the activity licence could endanger security of supply;
 6) the issue of the activity licence would be in conflict with the objectives provided by this Act;
 7) the issue of the activity licence may prejudice the legal rights or lawful interests of other electricity undertakings who operate on the basis of activity licences;
 8) an activity licence previously issued on the basis of this Act to the applicant or a person controlling the applicant has been revoked within a period of three years prior to the submission of the application for a new activity licence for any reason other than that provided in subsection 36(2) of this Act;
 9) the issue of the activity licence would be in conflict with this Act for any other reason;
 10) the applicant has failed to pay the state fee.

 (2) In addition to the grounds set out in subsection 1 of this section, the issue of activity licence for an activity specified in section 22(1)(5) or 22(1)(6) of this Act shall be refused if:
 1) the activity may endanger security of supply or prevent an obligation imposed on the network operator by law from being performed;
 2) the envisaged direct line or a line crossing the national border is not required for the transmission of electricity;
 3) the envisaged line crossing the national border is not justified in the context of system development.

 (3) [Repealed – RT I 2010, 8, 40 – entry into force 27.02.2010]

 (4) If it is possible to eliminate the circumstances which constitute grounds for refusal to issue an activity licence as provided in subsections 1 and 2 of this section, the Competition Authority shall grant reasonable time to the applicant for activity licence to effect such elimination.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

§ 31.  Validity of activity licence

 (1) An activity licence shall enter into force on the day following the day on which the decision to issue the activity licence is made. An activity licence issued to an applicant in the process of being incorporated shall enter into force on the day on which the applicant is entered in the Commercial Register or on the day following the day on which the decision to issue the activity licence is made, whichever is later.

 (2) An activity licence expires upon:
 1) expiry of the period of validity of the activity licence, unless, in accordance with this Act, an application for extension of the period of validity of the activity licence has been submitted before the expiry of the licence;
 2) expiry of the period of validity of the activity licence, if an application for extension of the period of validity of the activity licence, which was submitted in accordance with this Act before the expiry of the licence, is refused;
 3) revocation of the activity licence;
 4) dissolution of the holder of the activity licence.

 (3) An activity licence does not expire upon the merger, division or reorganisation of the electricity undertaking.

 (4) In the event of a merger, the activity licence issued pursuant to this Act to the company being acquired remains valid and continues to have the same conditions with regard to the new company, and is deemed to be the activity licence of the acquiring company. In the event of a merger as a result of which a new company is incorporated, the activity licence issued pursuant to this Act to the merging company remains valid and continues to have the same conditions with regard to the new company, and is deemed to be the activity licence of the company in the process of being incorporated.

 (5) In the case of division by separation, if the company which is being divided wishes to continue the pursuit of the activity stipulated in an activity licence granted to the company pursuant to this Act, that company must request amendment of the conditions of the activity licence, if necessary. The recipient company must request amendment of the conditions of the existing activity licence or apply for a new activity licence.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (6) In the event of reorganisation, the activity licence issued pursuant to this Act to the company being reorganised remains valid and continues to have the same conditions with regard to the new company, and is deemed to be the activity licence of the new company.

 (7) In the cases specified in subsections 4–6 of this section, the Competition Authority shall at the request of the former or the new holder of the activity licence make a decision by which the information entered in the corresponding activity licence is updated and the licence conditions are amended. The Competition Authority may also make the decision on its own initiative.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (8) The provisions of subsections 4–6 of this section shall not prejudice the right of the Competition Authority to revoke activity licences on the grounds provided in this Act.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

§ 32.  Information set out in activity licence and conditions of activity licence

 (1) The following shall be set out in a decision to issue an activity licence:
 1) the date of issue of the activity licence and, in the case of an activity licence with a specified term, the period of validity of the activity licence;
 2) the name of the recipient of the activity licence and its registration number in the Commercial Register;
 3) the address of the registered office and the contact details of the recipient of the activity licence;
 4) the area of activity specified in section 22(1) of this Act for which the activity licence is issued;
 5) the conditions of the activity licence.

 (2) The conditions of an activity licence shall be established by the Competition Authority and they shall form an integral part of the activity licence. The holder of an activity licence shall comply with the conditions of the licence throughout the period of validity of the licence and, in the cases and to the extent set out in this Act or in the conditions of the licence, also after expiry of the period of validity of the licence. The conditions of activity licences shall be established in accordance with the provisions of subsections 3–11 of this section.

 (3) In establishing the conditions of an activity licence issued for an activity specified in section 22(1) of this Act, public interest and the need to protect the rights of individuals shall be taken into account.

 (4) The following shall be set out in a decision to issue an activity licence for an activity specified in sections 22(1)(1) and 22(1)(2) of this Act:
 1) the maximum rated net capacity of the generating installation and other essential technical and environmental specifications;
 2) information concerning the location of the generating installation;
 3) information concerning the energy source or sources used to operate the generating installation;
 4) in the event that exploitation of the generating installation is terminated, information concerning what is to become of the generating installation and related buildings and civil engineering works and a list of other requirements for terminating the exploitation of the generating installation;
 5) in the event of the activity specified in section 22(1)(2) of this Act, information on whether the electricity generated on the basis of the activity licence may be sold by using the support specified in section 59 of this Act;
[RT I 2010, 8, 40 - entry into force 27.02.2010]
 6) in the case of an activity specified in section 22(1)(2) of this Act, a list of the requirements imposed in respect of the generation of electricity from renewable energy sources and for the corresponding generating installations, if the electricity generated on the basis of the activity licence may be sold by using the support specified in section 59 of this Act;
[RT I 2010, 8, 40 - entry into force 27.02.2010]
 7) a description of the generating installations which, in the case of an activity specified in section 22(1)(2) of this Act, may be used to generate electricity and sell electricity by using the support specified in section 59 of this Act;
[RT I 2010, 8, 40 - entry into force 27.02.2010]
 8) other conditions of the activity licence as established by the Competition Authority.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (5) The following shall be set out in a decision to issue an activity licence for the activities specified in sections 22(1)(3) and 22(1)(4) of this Act:
 1) the maximum rated operating voltage of the network;
 2) the technical, economic and organisational conditions which the network operator is to comply with;
 3) the requirements for the construction, installation and use of electrical installations, which must ensure occupational safety, protect the health of humans and the environment and contribute to sustainable use of energy resources;
 4) other conditions of the activity licence as established by the Competition Authority.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (6) The decision to issue an activity licence for the activity specified in section 22(1)(3) of this Act shall set out, amongst other conditions, information concerning the service area determined in accordance with section 62 of this Act.

 (7) The following shall be set out, amongst other conditions, in the decision to issue an activity licence for the activities specified in sections 22(1)(5) and 22(1)(6) of this Act:
 1) the maximum rated operating voltage of the line and the other main technical specifications of the line;
 2) information concerning the geographic coordinates of the line and the length of the line.

 (8) [Repealed – RT I 2010, 8, 40 – entry into force 27.02.2010]

 (9) The conditions of an activity licence issued for the activity specified in section 22(1)(3) of this Act may contain the requirement to provide a security which is acceptable to the Competition Authority and which covers the expenses associated with relocation of the network and related electrical installations or the implementation of measures for restoring the network and related electrical installations.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (10) The Competition Authority may impose a development obligation in accordance with section 66 of this Act as part of the conditions of an activity licence.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (11) The Competition Authority is entitled to impose, in an activity licence, conditions which are compatible with the objectives provided in this Act but which have not been specified in this section, if this is necessary to ensure security of supply or to perform the obligations arising from this Act and the legislation enacted on its basis.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (12) The conditions of an activity licence shall enter into force together with the activity licence or on the date designated by the Competition Authority at the time of establishing the conditions.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (13) If an electricity undertaking cannot comply with the conditions of the activity licence or cannot perform the obligations provided in this Act, the undertaking shall promptly notify the Competition Authority thereof in writing. The conditions, functions or obligations that the electricity undertaking cannot perform, as well as the reasons for this, shall be listed in the notification. If necessary, the electricity undertaking shall promptly apply for amendment of the conditions of the activity licence.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

§ 33.  Amendment of conditions of activity licence and establishment of new conditions

 (1) After the issue of an activity licence and on the basis of a substantiated written application from the electricity undertaking or on its own initiative, the Competition Authority may amend the conditions of the activity licence or establish supplementary conditions thereto in conformity with the provisions of this Act and the principles of equal treatment and free competition.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (2) After issuing an activity licence, the Competition Authority may amend the conditions of the activity licence or establish supplementary conditions thereto if this is necessary in order to take into account amendments to applicable legislation or to ensure security of supply or the performance of the obligations arising from this Act and the legislation enacted on its basis.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (3) Any amendment of the conditions of an activity licence or the establishment of supplementary conditions thereto shall be objectively justified and shall conform to the principle of equal treatment.

 (4) The Competition Authority shall notify the holder of an activity licence in writing of its intention to amend the conditions of the activity licence or to establish supplementary conditions thereto and shall set out the reasons for this. The draft amendments or supplementary conditions to the activity licence shall be sent to the holder of the activity licence together with the notice. The Competition Authority shall grant the holder of the activity licence a period of at least thirty days as of the date of receipt of the draft amendments of conditions by the holder for submitting its position regarding those amendments or conditions.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (5) Within thirty days as of receiving the holder’s position submitted pursuant to subsection 4 of this section, the Competition Authority shall communicate its opinion regarding the position to the holder of the activity licence.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (6) The Competition Authority shall notify the holder of an activity licence of any amendment of the conditions of the activity licence or of the establishment of supplementary conditions in writing at least ninety days in advance.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (7) The Competition Authority is not required to observe the provisions of subsections 4–6 of this section if a delay in the amendment of the conditions of the activity licence or in the establishment of supplementary conditions may endanger security of supply.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (8) The holder of an activity licence shall notify the Competition Authority immediately of any changes in the information specified in sections 32(1)(2) and 32(1)(3) of this Act. The Competition Authority shall enter the information in the register within three working days as of receiving that information.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

§ 34.  Validity period of activity licence

 (1) An activity licence issued for the activity specified in section 22(1)(1) of this Act shall expire on the date designated for termination of the activity as prescribed in the activity licence.

 (2) An activity licence issued for the activities specified in sections 22(1)(2)–22(1)(7) of this Act shall be issued for an unspecified term.

 (3) [Repealed – RT I 2010, 8, 40 – entry into force 27.02.2010]

 (4) A company which is in the process of being incorporated shall be issued the activity licence for a period of up to two years. Thereafter, the Competition Authority shall deem the activity licence to have been issued for an unspecified term if the holder of the activity licence so requests and provided that no circumstances have arisen during the initial period of validity which may, pursuant to this Act, constitute grounds for refusal to issue the activity licence or for revocation of the activity licence.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

§ 35.  Extension of validity period of activity licence

 (1) The Competition Authority may extend the period of validity of an activity licence issued for an activity specified in section 22(1)(1) of this Act at the request of the holder of the activity licence. Extension of the period of validity of an activity licence shall be subject to the provisions of this Division which concern applications for, issue of and refusals to issue new activity licences and the conditions of such licences.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

 (2) An application for extension of the period of validity of an activity licence shall be submitted to the Competition Authority not later than ninety days before the expiry of the period of validity. In exceptional circumstances, the Competition Authority may accept an application submitted later.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (3) If an application for extension of an activity licence is submitted in accordance with subsections 1 and 2 of this section, the activity licence shall remain valid at least until a decision is made regarding the application.

 (4) On extending the period of validity of an activity licence, the Competition Authority shall designate a new period of validity for the activity licence in accordance with the provisions of this Division. On extension of the period of validity of an activity licence, the conditions of the activity licence shall remain in force unless the Competition Authority decides to amend them or to establish supplementary conditions in accordance with this Act.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

§ 36.  Revocation of activity licence

 (1) The Competition Authority shall revoke an activity licence if:
[RT I 2007, 66, 408 - entry into force 01.01.2008]
 1) the holder of the activity licence has, on applying for the activity licence, intentionally submitted misleading or inaccurate information or false documents;
 2) the holder of the activity licence does not meet the requirements established for electricity undertakings in this Act or the legislation enacted on its basis or if the holder of the licence does not possess the required commercial and organisational prerequisites and facilities for operating in the field specified in the activity licence;
 3) the operations of the holder of the activity licence does not meet the requirements established for the activity in this Act or the legislation enacted on its basis;
 4) the holder of the activity licence fails to perform the obligations prescribed in this Act or the legislation enacted on its basis or fails to comply with the conditions of the activity licence as established by the Competition Authority on the basis of this Act;
[RT I 2007, 66, 408 - entry into force 01.01.2008]
 5) the activities of the holder of the activity licence endanger security of supply or are in conflict with the objectives set out in this Act;
 6) the activities of the holder of the activity licence prejudice legal rights or lawful interests of other holders of activity licences;
 7) the holder of the activity licence assigns any rights and obligations arising from the activity licence to a third party;
 8) according to a notice from the tax administration, the holder of the activity licence has repeatedly violated tax legislation;
 9) the holder of the activity licence has failed to commence the activities specified in the activity licence within the term prescribed by the activity licence or terminates such activities within the period of validity of the activity licence;
 10) circumstances become evident in relation to the activities of the holder of the activity licence which under this Act constitute grounds for refusal to issue the activity licence.

 (2) The Competition Authority may revoke an activity licence at the request of the holder of the licence if the revocation does not endanger security of supply.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (3) If it is possible to eliminate the circumstances which constitute grounds for revocation of the activity licence as provided in subsection 1 of this section, the Competition Authority may grant reasonable time to the holder of the licence to effect such elimination.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (4) Upon revocation of an activity licence, the Competition Authority shall communicate the decision to revoke the activity licence to the holder of the activity licence and remove the information concerning the undertaking from the register within three working days after the date on which the decision to revoke the activity licence was made.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

§ 37.  Obligation to continue activities

 (1) If an activity licence expires or the Competition Authority revokes an activity licence, the Competition Authority shall, where necessary, decide on the measures to be applied in order to ensure continuation of the activities carried out on the basis of the activity licence and preservation of the assets needed to continue such activities.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (2) Upon expiry of the period of validity of an activity licence or upon revocation of an activity licence, the holder of the activity licence shall, at the request of the Competition Authority, continue to perform the obligations arising from legislation and the conditions of the activity licence for a period of time determined by the Competition Authority.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

Chapter 3 SYSTEM RESPONSIBILITY 

§ 38.  System responsibility and system operator

 (1) System responsibility is the obligation to ensure security of supply and balance of the system at any moment in time.

 (2) System responsibility shall attach to the system operator. The transmission network operator is the system operator.

 (3) The system operator shall exercise the rights and perform the obligations arising from this Chapter in accordance with the principle of equal treatment.

§ 39.  Obligations of system operator

 (1) In order to perform the obligation provided in section 38 of this Act, the system operator shall:
 1) ensure the security of supply of the system in accordance with the grid code;
 2) prepare an annual action plan to ensure security of supply for the following year and, if necessary, modify such plan;
 3) plan and manage generation in the system, the transmission of electricity in the transmission network and the consumption of electricity, taking account of the technical parameters of the system;
 3¹) draw up the principles for regulating the system within the hour, plan for the allocation of cross-border capacities and the principles of congestion management, having regard to the principles of congestion management set out in Regulation (EC) No 714/2009 of the European Parliament and of the Council, and publish these on its website after having obtained the approval of the Competition Authority;
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 4) ensure interoperability with neighbouring systems in real time, taking into account the technical parameters of such systems;
 5) prepare and establish action plans for network operators for the restoration of electricity supply and monitor the implementation thereof;
 6) organise the restoration of electricity supply in accordance with the action plan specified in point 5 of this subsection;
 7) settle the balance of the system and of the balance provider on the basis of information communicated to the system operator, and purchase regulating capacity and balancing electricity, and sell balancing electricity in order to ensure effective operation of the electricity market and a fair division of the costs incurred in maintaining the balance of the system among the balance providers in accordance with this Act, the legislation enacted on its basis and the agreements entered into with balance providers;
 8) verify that the balance providers meet the requirements provided in this Act and the grid code;
 9) require balance providers to provide a bank guarantee in accordance with this Act and the grid code and check whether the guarantee meets the requirements;
 10) enter into balance agreements with balance providers;
 11) on the basis of data relating to balance settlement and other relevant data, present invoices to the balance provider for each transaction period regarding the charges payable for the balancing electricity purchased by the balance provider and any other charges payable to the system operator by virtue of legislation or the corresponding agreement and collect the sums payable by the balance provider on the basis of the invoice;
 12) on the basis of data relating to balance settlement and other relevant data, calculate the amounts of balancing electricity sold by a balance provider to the system operator during each transaction period and pay the balance provider for such amounts;
 13) in the cases set out in section 20 of this Act, demand an increase in the amount of the guarantee provided by a balance provider or permit a reduction thereof;
 14) make proposals to the Minister of Economic Affairs and Communications regarding amendment of the grid code;
 15) regularly inform the public of development trends of the system;
 15¹) provide information to the network operator whose network is connected to the network of the system operator in order to ensure the safe and effective operation of the system, its coordinated development and the interoperability of the joint system;
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 16) at the request of a market participant who intends to import electricity, issue a notice to the market participant stating its opinion on whether the planned import is permissible from the point of view of technical parameters of the system and whether such import would prejudice security of supply and, if necessary, establish requirements for the import of electricity on the basis of the technical parameters of the system;
[RT I 2010, 8, 40 - entry into force 27.02.2010]
 17) perform other functions arising from this Act or the grid code.

 (2) When the system operator issues an order specified in section 40(2) of this Act to a producer who has not entered into a production capacity adjustment agreement with the system operator, or reduces or increases generation on the grounds specified in section 40(2) of this Act, and this causes the producer to incur expenditure, the system operator shall subsequently reimburse the producer within a reasonable time for any justified and verified expenditure which the producer would not have incurred if the system operator had not issued the order or had not increased or reduced generation.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

 (2¹) The system operator shall not reimburse the producer for loss of profit if the order to reduce generation which the system operator issued to the producer was made on the grounds specified in section 40(2) of this Act and provided all other options had been exhausted.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

 (3) The system operator shall not disclose information obtained in the course of performing its duties to third parties. This does not apply in cases where the disclosure of information is prescribed by law or where information is to be disclosed for the performance of obligations arising from this Act.

 (4) The system operator shall be independent in its activities. The system operator shall observe the principle of equal treatment with regard to all market participants with the aim of achieving the best economic results for the whole system within the framework of existing technical requirements and requirements for the security of supply as well as other requirements arising from applicable legislation.

 (5) At the request of the Competition Authority, the system operator shall submit information on the allocation of revenue and expenditure separately for maintaining and determining the balance of the system and for any other activities.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (6) When elaborating standard terms and conditions for balance agreements and setting the price of balancing electricity, the system operator shall observe the principles of equal treatment and transparency.

 (7) The system operator shall prepare and submit a report to the European Commission, the Ministry of Economic Affairs and Communications and the Competition Authority which sets out:
[RT I 2007, 66, 408 - entry into force 01.01.2008]
 1) estimated supply and demand of electricity during the next five years;
 2) the existing supply potential;
 3) generating installations envisaged or under construction;
 4) the quality and level of maintenance of networks;
 5) the measures to cover the estimated maximum demand (peak demand) and the measures to be implemented in the event of shortfalls of capacity;
 6) operational security of the network;
 7) a forecast of the situation in relation to the security of electricity supply for a period from five to fifteen years from the filing date of the report;
 8) the investment plans of the distribution network operator and the known relevant investment plans of neighbouring countries concerning the establishment of cross-border interconnectors for the following five calendar years, taking into account the need to maintain trade secrets.
[RT I 2007, 23, 120 - entry into force 01.05.2007]

 (8) The investment plan specified in point 8 of subsection 7 of this section shall set out:
 1) principles of congestion management set out in Regulation (EC) No 714/2009 of the European Parliament and of the Council;
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 2) existing and envisaged transmission lines;
 3) estimated patterns of generation and transmission of electricity, of cross-border exchanges in electricity and of consumption of electricity which make it possible to implement load management measures;
 4) objectives of sustainable development at regional, national and European level, including projects which are part of the priority projects set out in Annex 1 to Decision No 1229/2003/EC of the European Parliament and of the Council of laying down a series of guidelines for trans-European energy networks and repealing Decision No 1254/96/EC (OJ L 176, 15.7.2003, pp. 11–28).
[RT I 2007, 23, 120 - entry into force 01.05.2007]

§ 40.  Rights of system operator

 (1) In order to perform the obligation prescribed in section 38 of this Act and other obligations prescribed in this Act, the system operator shall demand that producers increase or reduce generation or that consumers reduce consumption or shall itself increase or reduce generation or consumption in accordance with the contracts entered into for the purchase of regulating capacity.

 (2) In order to perform the obligation prescribed in section 38 of this Act and other obligations prescribed in this Act, the system operator has the authority to issue mandatory orders to producers to increase or reduce generation, the right to issue mandatory orders to consumers to reduce consumption and the right itself to increase or reduce generation or consumption, regardless of whether a contract has been entered into with the system operator for the purchase of regulating capacity, provided that the issue of such orders or the increase or reduction of generation or consumption is necessary for technical reasons or in order to ensure security of supply.

 (3) The system operator has the right to issue mandatory orders to other network operators and consumers for the restriction or interruption of the supply of electricity to consumers and the right itself to restrict or interrupt consumption in accordance with the action plan prepared pursuant to section 39(1)(5) of this Act, provided that this is necessary for the system operator to perform the obligation prescribed in section 38 of this Act or other obligations prescribed in this Act. The specific procedure for the restriction and interruption of electricity supply referred to in this subsection and the obligations of network operators and consumers in relation thereto shall be set out in the grid code.

 (4) When purchasing the electricity and regulating capacity necessary to perform its obligations and when using other relevant services, the system operator shall observe free market principles, act with regard to all market participants in accordance with the principles of equal treatment and transparency, and avoid establishing unreasonable restrictions.

 (5) In order to perform its duties, the system operator has the authority to establish justified technical restrictions for use of the system and the right to require that, in order to ensure the technical interoperability and security of supply of the system, producers and network operators enter into a cooperation agreement under reasonable conditions which conform to the principle of equal treatment.

 (6) The system operator has the right to require that market participants and local authorities submit to it the information that it needs for the performance of its obligations.

 (7) Any payments made and expenses reimbursed on the basis of section 39(2) of this Act and any other justified expenses incurred by the system operator in performing the obligations set out in this Act and the legislation enacted on its basis shall be deemed to be justified expenses incurred by the transmission network operator and such expenses shall be added to the expenses on the basis of which the transmission network operator sets and approves charges payable for the transmission of electricity.

§ 40¹.  Perimeter fee

  Pursuant to Regulation (EC) No 714/2009 of the European Parliament and of the Council, the system operator shall pay a perimeter fee to the fund created by the inter-transmission system operator compensation mechanism for electricity transit. Perimeter fees shall be charged on those electricity flows which originate from or end in such countries which have not joined the aforementioned compensation mechanism. The rate of the perimeter fee shall be determined each year in an agreement between the system operators which forms part of the compensation mechanism.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

§ 41.  Liability of system operator

 (1) The system operator shall compensate the harm caused to third parties in the course of performing its obligations only if the harm that was caused is direct and the system operator was at fault for causing the harm.

 (2) The system operator shall not compensate any harm arising from or reimburse any expenditure or the loss of any profit incurred in the course of the performance of orders specified in sections 40(2) and 40(3) of this Act or as a result of restrictions imposed pursuant to section 40(5) of this Act, except for payment of charges or reimbursement of expenditure to producers in accordance with sections 39(2) and 39(2¹) of this Act.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

§ 42.  Grid code

 (1) The following shall be set out in the grid code:
 1) requirements for security of supply;
 2) technical requirements for electrical installations which are dictated by security of supply;
 2¹) simplified conditions for connecting to the network a generating installation which has a capacity of less than 15 kW and which uses a renewable energy source;
[RT I 2010, 8, 40 - entry into force 27.02.2010]
 3) technical and metrological requirements for measurements and for measuring equipment;
 4) the procedure for connection to the network and for amendment of the consumption or generation conditions and the procedure for calculation of charges payable to the network operator for connection to the network and for amendment of the consumption or generation conditions;
 5) conditions for technical cooperation between the transmission network operator and the respective network operators of neighbouring countries;
 5¹) procedure for switching to another seller;
[RT I 2010, 8, 40 - entry into force 27.02.2010]
 5²) terms and conditions for the sale of electricity in the event of an interruption in open supply chain;
[RT I 2010, 8, 40 - entry into force 27.02.2010]
 5³) information exchange between market participants;
[RT I 2010, 8, 40 - entry into force 27.02.2010]
 6) other conditions prescribed by law.

 (2) The grid code shall be established by the Government of the Republic.

Chapter 4 BALANCE RESPONSIBILITY, BALANCE SETTLEMENT AND BALANCING ELECTRICITY 

§ 43.  Balance responsibility

 (1) A market participant shall ensure that the amount of electricity supplied to the network and/or purchased by the market participant in each trading period is equal to the amount of electricity acquired from the network and/or sold by the market participant.

 (2) The rights and obligations relating to balance responsibility shall be set out in detail in the grid code.

§ 44.  Open supply

 (1) In order to perform the obligation specified in section 43 of this Act, a market participant shall enter into a contract with a seller (hereinafter, ‘open supplier’) whereby an open supply is ensured to the market participant (hereinafter, ‘open supply contract’).

 (2) In an open supply contract entered into with a market participant, the open supplier shall designate the balance provider who has assumed the obligation to maintain the balance of the market participant who is the other party to the open supply contract entered into by the open supplier. The balance provider may assume the obligation:
 1) by an open supply contract entered into with the open supplier;
 2) through an uninterrupted chain of open supplies carried out pursuant to open supply contracts, beginning with the open supply provided by the balance provider and ending with the open supply provided to the open supplier specified in this subsection.

 (3) An open supplier who is a balance provider is not subject to the obligation, provided in subsection 2 of this section, to designate a balance provider.

 (4) If an open supplier cancels an open supply contract or terminates it in another manner, the open supplier shall give at least 21 days notice of this to the other party and to the network operator to whose network the electricity installation of the open supply recipient is connected.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (4¹) If a market participant’s contract for open supply has been interrupted, the network operator to whose network the market participant’s electricity installation is connected shall be regarded as the market participant’s open supplier until the execution of a new contract.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

 (4²) Pursuant to subsection 4¹ of this section, t he network operator shall provide open supply to market participants, except for small customers:
 1) for the electricity obtained from the network, at the price of balancing electricity, to which any justified expenses shall be added;
 2) for the electricity supplied to the network, free of charge.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (5) The system operator shall be the open supplier in respect of a balance provider. The balance provider shall enter into a balance agreement with the system operator to ensure open supply.

 (6) An open supplier shall provide information concerning the start and end of open supply to the electricity undertaking which determines the balance of the other party to the open supply.

 (7) An open supplier shall also provide the information specified in subsection 6 of this section to:
 1) the distribution network operator of the other party to the open supply if the distribution network operator does not determine the balance of that other party;
 2) the entity which determines the balance of the open supplier, if the open supplier has not previously sold electricity to that distribution network.

 (8) At the request of the system operator, a balance provider shall provide the system operator with information concerning the chain of open supplies carried out pursuant to its open supply contracts in respect of each market participant whose balance is determined by the balance provider.

 (9) [Repealed – RT I 2007, 23, 120 – entry into force 01.05.2007]

 (10) [Repealed – RT I 2007, 23, 120 – entry into force 01.05.2007]

 (11) [Repealed – RT I 2007, 23, 120 – entry into force 01.05.2007]

§ 45.  Fixed supply

 (1) A balance provider shall determine the procedure for it to be notified of all fixed supplies to the market participant whose balance is maintained by the balance provider pursuant to section 44(2) of this Act.

 (2) The system operator shall determine the procedure for it to be notified of all fixed supplies which affect the balance between balance providers or which are carried out through a line crossing the national border.

 (3) A party to a fixed supply contract shall notify the start of a fixed supply to the balance provider who maintains its balance pursuant to section 44(2) of this Act and submit consolidated data concerning the other party to the fixed supply pursuant to the procedure determined by the balance provider.

 (4) A party to a fixed supply contract shall provide its open supplier with consolidated data concerning the amounts of electricity sold and purchased as fixed supplies during each trading period.

 (5) A balance provider shall provide the system operator with consolidated data regarding the fixed supplies belonging to its balance for each balance provider during each trading period if such fixed supplies affect the balance between it and other balance providers.

§ 46.  Balance settlement

 (1) The balance of a market participant shall be settled for each trading period. The balance of a market participant shall not be settled in the case that, by way of exercising the obligation to sell of the network operator as provided in section 76 of this Act, the market participant purchases electricity only from the network operator or a seller designated by the network operator.

 (2) A market participant shall ensure that the data required for the settlement of its balance are submitted to the entity responsible for settling its balance pursuant to the procedure provided in this Act and the grid code.

 (3) Balance shall be settled using the following methods:
 1) electricity metering by means of a remote reading device;
 2) distribution on the basis of a combination of metering and load duration curves;
 3) fixed supplies.

 (4) As a result of balance settlement, the amount of open supply of a market participant is ascertained for each trading period.

 (5) Balance settlement using a combination of metering and load duration curves is permitted in such connection points where the size of the main circuit breaker in the phase and the capacity of the phase do not exceed the limits set out in the grid code.

 (6) Where the balance of a market participant cannot be settled by using a combination of metering and load duration curves as provided in subsection 5 of this section, the balance of the market participant shall be settled by using electricity metering by means of a remote reading device and by reference to fixed supplies.

 (7) A network operator shall obtain the approval of the Competition Authority for the load duration curves established for its service area.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (8) If electricity consumption by a market participant or a group of market participants differs significantly from the established load duration curves due to the specific characteristics of the market participant or a category of market participants, the distribution network operator concerned may demand that the Competition Authority promptly approve a new load duration curve that corresponds to the specific characteristics of the market participant or the category of market participants. The distribution network operator may also commence metering the electricity consumed by the market participant or the category of market participants by means of a remote reading device. Any expenses associated with the cost of and incurred in relation to the installation of a remote reading device as well as additional expenses incurred in gathering and processing metering data shall be reimbursed to the distribution network operator by the market participant concerned.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

§ 47.  Obligations of network operator in settling the balance

 (1) A network operator shall arrange the communication of metering data necessary for balance settlement and for the settlement of accounts to the entity responsible for balance settlement and to the system operator for each connection and metering point in its network.

 (2) A distribution network operator shall arrange settlement of the balance of the market participants connected to its network and the related exchange of information.

 (3) A distribution network operator shall calculate the amounts of electricity of each market participant connected to its network whose balance is to be settled pursuant to this Act. In calculating amounts of electricity, the distribution network operator shall use data obtained as a result of metering carried out by means of a remote reading device or by a combination of metering and load duration curves.

 (4) A distribution network operator shall provide the balance provider with consolidated data concerning electricity supply to and from its network separately for each market participant whose balance the balance provider is to maintain pursuant to section 44(2) of this Act.

 (5) A distribution network operator shall provide a seller with the information required for maintaining the balance and for the settlement of accounts concerning the amounts of electricity calculated in the course of balance settlement for each market participant connected to its network to whom the seller sells electricity.

 (6) Once a year the distribution network operator shall determine, for each market participant, the difference between the amount of electricity calculated using a combination of metering and load duration curves and the actual metered amount of electricity.

 (7) If, according to the calculations carried out pursuant to subsection 6 of this section, the total amount of electricity calculated on the basis of a combination of metering and load duration curves for market participants to whom the seller sold electricity exceeds the total actual metered amount of electricity for such market participants, the network operator shall pay the seller for the difference between the said amounts of electricity, and if the total amount of electricity calculated in this way for such market participants is less than the total actual metered amount of electricity for such market participants, the seller shall pay the network operator for the difference between those amounts.

 (8) The charge payable for the difference between amounts of electricity as specified in subsection 7 of this section shall be calculated using the average price of electricity during the period of time which was the basis for calculating the amount of electricity, and such price shall be determined on the basis and pursuant to the procedure set out in the grid code.

§ 48.  Obligations of balance provider in settling the balance

 (1) A balance provider shall arrange balance settlement and the related exchange of information in the transmission network and in the metering points between the transmission network and the distribution network for those market participants whose balance is maintained by the balance provider in accordance with section 44(2) of this Act. The balance provider shall also arrange balance settlement and the related exchange of information concerning feeds of electricity from the transmission network to the distribution network for the market participants who have fixed supplies and whose balance is maintained by the balance provider in accordance with section 44(2) of this Act.

 (2) On the basis of metering data, the balance provider shall calculate the amounts of electricity sold by market participants whose balance is maintained by the balance provider in accordance with section 44(2) of this Act to other market participants through the transmission network. The balance provider shall also calculate the amounts of electricity for market participants connected to the distribution network, who have fixed supplies in accordance with data obtained as a result of metering using a remote reading device and data obtained as a result of a combination of metering and load duration curves.

 (3) For the purposes of balance settlement, a balance provider shall provide the system operator with consolidated data which is based on metering information and which concerns open supplies as well as consolidated data concerning the fixed supplies of those market participants whose balance is maintained by the balance provider in accordance with section 44(2) of this Act.

 (4) A balance provider shall provide the seller and the market participant to whom electricity was sold with information which is required for maintaining the balance and for settlement of accounts in relation the amounts of electricity calculated in order to settle the balance.

§ 49.  Obligations of system operator in settling the balance

 (1) The system operator shall carry out balance settlement for the whole system and for balance providers and, on the basis the data obtained, shall prepare a report on balance deviations between the system operator and the balance providers and draw up a report on balance deviations between the system and the electricity systems of other countries.

 (2) The system operator shall provide a balance provider with information concerning the amounts of electricity they have sold to each other. The system operator shall inform a foreign market participant of amounts of electricity which were purchased and sold by the market participant and which crossed the national border of Estonia.

§ 50.  Other obligations in connection with settling the balance

 (1) Upon receiving a corresponding request, market participants shall provide the network operator, the balance provider maintaining their balance in accordance with section 44(2) of this Act and the system operator with information concerning the purchase, use and sale of electricity provided the request to submit such data is justified in the context of balance settlement or the exercise of balance responsibility.

 (2) A balance provider shall assist the system operator in rectifying inaccurate information submitted for balance settlement if this is required in order to settle the balance of the whole system.

 (3) The specific rights and obligations of market participants in relation to balance settlement and the term for the communication of information as set out in this Chapter shall be established in the grid code.

§ 51.  Purchase and sale of balancing electricity

 (1) If, on the basis of balance settlement, the balance of a balance provider is negative in any trading period, the system operator shall be deemed to have sold balancing electricity to the balance provider during the trading period in the amount necessary to maintain the balance of the balance provider during that trading period.

 (2) If, on the basis of balance settlement, the balance of a balance provider is positive in any trading period, the balance provider shall be deemed to have sold balancing electricity to the system operator during the trading period in the amount necessary to maintain the balance of the balance provider during that trading period.

 (3) The sale of balancing electricity specified in subsections (1) and (2) of this section shall be deemed to have been effected between the system operator and the balance provider under the conditions set out in this Act, the legislation enacted on its basis and the balance agreement.

§ 52.  Rights and obligations of balance provider

 (1) A balance provider is entitled to receive payment for any balancing electricity that it sells to the system operator in accordance with this Act, the grid code and the contract entered into with the system operator.

 (2) A balance provider shall pay for the balancing electricity sold to it by the system operator in accordance with this Act, the grid code and the contract entered into with the system operator.

 (2¹) A balance provider shall reimburse to the system operator the perimeter fee payable on the relevant supplies of the market participant whose balance the balance provider maintains.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

 (3) A balance provider shall perform any other obligations prescribed by this Act, the grid code and the contracts entered into with the system operator.

§ 53.  Price of balancing electricity and standard terms and conditions of balance agreement

 (1) The price of electricity sold to or by a balance provider during a given trading period pursuant to sections 51(1) and 51(2) of this Act shall be determined by the system operator after the end of the given trading period in accordance with this Act and the balance agreement concluded with the balance provider.

 (2) The system operator shall set the price of balancing electricity such that the price enables the system operator to:
 1) cover any justified expenses incurred in the purchase of regulating capacity;
 2) cover any justified expenses incurred in connection with balance settlement;
 3) cover any justified expenses incurred in connection with the purchase and sale of balancing electricity;
 4) ensure a justified return on capital.

 (3) When setting the price of balancing electricity, the system operator may accord preference to market participants whose balance deviation during a given trading period is converse to the balance deviation of the system as a whole during the same trading period, as opposed to market participants whose balance deviation during the same trading period is in the same direction as the balance deviation of the system as a whole.

 (4) The system operator shall obtain approval for standard terms and conditions in the balance agreement from the Competition Authority.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (5) The system operator shall publish on its website the price of balancing electricity and the standard terms and conditions of the balance agreement.

 (6) The Competition Authority shall prepare and publish uniform methods for calculation of the price of balancing electricity and shall rely on such methods when monitoring the price of balancing electricity. The methods shall be prepared taking into account the requirements specified in subsection 2 of this section and other relevant requirements.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

§ 54.  Procedure for paying for balancing electricity

 (1) The system operator shall calculate the amount of the charge to be collected from, and the amount of the charge to be paid to, a balance provider on the basis of the amounts of balancing electricity as determined pursuant to section 51 of this Act and on the basis of the selling price of balancing electricity as determined pursuant to section 53 of this Act.

 (2) The system operator shall submit invoices to the balance provider for each transaction period for the amount calculated pursuant to subsection 1 of this section and shall pay the invoices submitted to it by the balance provider for the amount calculated pursuant to subsection 1 of this section.

 (3) The specific procedure for the communication of data to the system operator and for the calculation, set-off and payment of the charges invoiced to balance providers for balancing electricity and of the charges payable to them for balancing electricity shall be set out in the grid code.

Chapter 5 GENERATION 

§ 55.  Obligations of producer

 (1) The generating installations of producers shall conform to the technical requirements established by the grid code. The network operator to whose network the generating installation is connected or in whose service area the generating installation is connected to its network through a direct line and the electrical installation of a customer, shall certify the installation’s compliance with the requirements after the end of the testing period and on the basis of test results. If the net capacity of the generating installation exceeds 5 MW, the installation’s compliance with the requirements shall be certified by the system operator. The generating installation shall be deemed to be in compliance with the requirements from the date that such certificate is issued. The length of the testing period and other conditions concerning the testing shall be set out in the grid code. If a European product certificate has been issued with respect to the generating installation, no testing of the generating installation in terms of the parameters and functions covered by that certificate shall be required.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (2) A producer shall comply with orders issued by the system operator pursuant to this Act.

 (3) A producer shall notify the system operator promptly of any dangerous situations, accidents or other circumstances that endanger or could endanger security of supply or the performance of any contractual obligations.

 (4) A producer who is an undertaking in a dominant position as defined in the Competition Act and who generates electricity in a combined heat and power production regime shall, at the request of the Competition Authority, submit information on the allocation of revenue and expenses separately for the generation of electricity and for heat production together with the relevant reasons.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

§ 56.  Transfer of generating installation

 (1) The owner of a generating installation and a producer shall notify the Competition Authority in writing of any transfer of ownership or of direct possession of the generating installation. The notice shall set out the names, personal identification codes or registration numbers in the Commercial Register and contact details of the transferor and transferee or of the person assigning possession and the person acquiring possession, and information which allows the transferred or assigned generating installation and its location to be identified.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (2) The obligation set out in subsection 1 of this section does not apply to the transfer or assignment of possession of a generating installation with a net capacity of 1 MW or less.

§ 57.  Renewable energy sources

 (1) For the purposes of this Act, renewable energy sources are water, wind, solar, wave, tidal and geothermal energy sources, landfill gas, sewage treatment plant gas, biogases and biomass.

 (2) For the purposes of this Act, biomass is the biodegradable fraction of products, waste and residues from agriculture (including vegetable and animal substances), forestry and related industries, as well as the biodegradable fraction of industrial and municipal waste.

 (3) Liquid biofuel shall be regarded as a renewable energy source within the meaning of this Act only if it meets the criteria for the sustainability of biofuels established pursuant to section 58(2) of the Ambient Air Protection Act.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

§ 58.  Generation from renewable energy sources and efficient cogeneration

 (1) Producers shall not subsidise generation from renewable energy sources at the expense of generation from other sources and vice versa. At the request of the Competition Authority, a producer shall submit information on the allocation of revenue and expenses separately for generation from renewable energy sources and for generation from other sources.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (2) The amount of electricity with regard to which a guarantee of origin specified in section 58¹ of this Act is issued, as well as the amount of electricity in respect of which the support specified in section 59 of this Act is paid in part or in full, shall be determined using remote reading devices and for that purpose, all balanced electricity supplied to the network during the trading period and electricity conveyed to consumers via a direct line which conforms to the requirements of the activity licence shall be measured and added up at all connection points of the producer’s power station.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (3) By the fifth day of each calendar month, a producer shall submit information to the transmission network in respect of each generating installation regarding the entire amount of electricity generated during the previous calendar month, and the amount of electricity generated from renewable energy sources or in an efficient cogeneration process during the previous calendar month, and the amount of electricity so produced which was sold by using the support specified in section 59 of this Act. The amounts of electricity generated in an efficient cogeneration process shall be calculated on the basis of the methods set out in Annex 2 to Directive 2004/8/EC of the European Parliament and of the Council.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

 (4) The Competition Authority and the transmission network operator shall have the right to demand from the producer, line possessor or network operator to whose network or line the generating installations of a producer are connected, the data necessary for the verification of the information submitted pursuant to subsection 3 of this section.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (5) If the amount of electricity actually generated from renewable energy sources or in an efficient cogeneration process by means of a generating installation which conforms to the requirements of the activity licence is less than the amount of electricity sold by the producer by using the support provided in section 59 of this Act during at least two consecutive calendar months, the Competition Authority shall be entitled to revoke the activity licence or to amend its conditions such that electricity can no longer be sold by using the support set out in section 59 of this Act.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

 (6) If electricity is generated from a combination of renewable energy sources and other sources, the producer shall receive the support assigned on the basis of section 59(1)(1) of this Act only for such amounts of electricity as are generated from renewable energy sources. A producer shall keep records on the use of energy sources and on the amounts of electricity generated from those sources.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

 (7) The conditions of and procedure for determining the proportion of electricity generated from renewable energy sources shall be established by the Minister of Economic Affairs and Communications.

 (8) A transmission network operator shall publish on its website the information specified in subsection 3 of this section and the procedure for submission thereof.
[RT I 2007, 23, 120 - entry into force 01.05.2007]

§ 58¹.  Guarantees of origin

 (1) A guarantee of origin is an electronic document which is issued by the transmission network operator to a producer on the basis of the producer’s application and which certifies that the electricity is generated from renewable energy sources or in an efficient cogeneration process.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (1¹) The standard unit of energy of a guarantee of origin is megawatt-hour. In respect of each megawatt-hour generated, one guarantee of origin shall be issued.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (1²) In order to prove the origin of the electricity consumed, guarantees of origin issued in Estonia or in another member state of the European Union shall be used. A guarantee of origin can be bought separately from the electricity generated.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (1³) A guarantee of origin may be used during twelve months following the generation of the unit of energy concerned. The validity of a guarantee of origin ends once it has been used.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (2) A transmission network operator shall elaborate and publish on its website the conditions and procedure for the issue of guarantees of origin.

 (3) A transmission network operator shall create a database for the administration of guarantees of origin and shall publish information regarding the issued guarantees of origin on its webpage.

 (4) Guarantees of origin shall set out:
 1) the name, address of the seat of business and contact information of the producer;
 2) the location, type and capacity of the generating installation, the name of the energy source used for the generation of electricity and the place of generation;
 3) the date on which the generating installation supplied electricity for the first time;
 4) the start and end date of the generation of the energy unit;
 5) whether and to what extent the producer has received investment support or the support specified in section 59 of this Act;
 6) the date of issue of the guarantee of origin and its identification number;
 7) other relevant data.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (5) In addition to information specified in subsection 4 of this section, the g uarantees of origin of electricity generated in an efficient cogeneration process shall also set out the lower calorific value of the fuel used and the manner of use of the heat generated.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

§ 59.  Support

 (1) A producer is entitled to receive support from the transmission network operator:
 1) for electricity if it is generated from a renewable energy source. Since 1 July 2010, for electricity if it is generated from a renewable energy source, except from biomass;
 2) since 1 July 2010, for electricity if it is generated from biomass in an efficient cogeneration process, except where electricity is generated from biomass in a condensation process, in which case no support is paid. Detailed guidelines for cogeneration shall be established in a regulation of Government of the Republic on the proposal from the Minister of Economic Affairs and Communications. The Minister of Economic Affairs and Communications shall formulate its proposal to the Government regarding detailed guidelines for cogeneration on the basis of a proposal of the Competition Authority;
 3) for electricity if it is generated in an efficient cogeneration regime from waste within the meaning of the Waste Act, from peat or carbonisation gas obtained as a result of oil shale processing;
 4) for electricity if it is generated in an efficient cogeneration process with a cogeneration installation which has the electric capacity not exceeding 10 MW;
 5) for the availability of the installed net capacity of an oil shale-based generating installation if the generating installation started operation in the period from 1 January 2013 to 1 January 2018.

 (2) The transmission network operator shall pay support to the producer on the basis of an application submitted by the latter as follows:
 1) 0.0537 euros per one kilowatt-hour of electricity if it is generated in accordance with points 1 or 2 of subsection 1 of this section;
[RT I 2010, 22, 108 - entry into force 01.01.2011]
 2) 0.032 euros per one kilowatt-hour of electricity if it is generated in accordance with points 3 or 4 of subsection 1 of this section;
[RT I 2010, 22, 108 - entry into force 01.01.2011]
 3) per one kilowatt-hour of electricity at the rate specified in points 1 and 2 of this subsection or at the rate approved by the Competition Authority if the electricity is generated in an efficient cogeneration process using a renewable energy source or peat;
 4) 0.016 euros per hour per one kilowatt of available net capacity referred to in point 5 of subsection 1 of this section and subsection 1¹ of section 108 if the price of greenhouse gas allowance is more than 20.00 euros per tonne;
[RT I 2010, 22, 108 - entry into force 01.01.2011]
 5) 0.015 euros per hour per one kilowatt of available net capacity referred to in point 5 of subsection 1 of this section and subsection 1¹ of section 108 if the price of greenhouse gas allowance is 15.00–20.00 euros per tonne;
[RT I 2010, 22, 108 - entry into force 01.01.2011]
 6) 0.014 euros per hour per one kilowatt of available net capacity referred to in point 5 of subsection 1 of this section and subsection 1¹ of section 108 if the price of greenhouse gas allowance is 10.00–14.99 euros per tonne.
[RT I 2010, 22, 108 - entry into force 01.01.2011]

 (3) The Competition Authority may approve a rate different from the rate specified in points 1, 2 or 3 of subsection 2 of this section on the basis of an application from the producer named in subsection 1 of this section if the electricity is generated in an efficient cogeneration process using a renewable energy source or peat.

 (4) In approving the rate specified in subsection 3 of this section it shall be taken into account that the support and the market price of electricity together must allow the producer to:
 1) cover the justified expenses incurred in generating electricity, provided that the fuel expenses do not exceed the market price of the fuel;
 2) cover any expenses incurred in connection with performing the obligations arising from legislation and the conditions of the activity licence;
 3) cover any justified cost of capital;
 4) ensure a justified return on capital.

 (5) The Minister of Economic Affairs and Communications may, if necessary, establish a list of information to be submitted in the application specified in subsection 3 of this section and a procedure for submission thereof.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

§ 59¹.  Conditions of support

 (1) The following conditions must be met in order to be eligible for the support specified in section 59 of this Act:
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 1) the electricity must be generated by means of a generating installation conforming to the requirements of this Act and the grid code;
 2) the producer must fulfil the obligation provided in Chapter 4 and section 58 of this Act;

 (2) A producer shall not be granted support:
 1) in the case specified in point 5 of subsection 1 of section 59, if the price of the greenhouse gas allowance is less than 10 euros per tonne;
 2) for electricity on the basis of point 1 of subsection 2 of section 59 if the electricity is generated with a generating installation for availability of the capacity for which the producer receives support on the basis of point 4, 5 or 6 of subsection 2 of section 59;
 3) if the producer uses wind as the source of energy and has received investment support from the government in respect of the same generating installation;
[RT I, 28.06.2012, 1 – entry into force 08.07.2012];
 4) if the producer lacks the environmental licences required in order to generate electricity or is in breach of the conditions of such environmental licences.
 5) for electricity generated for the power station’s own consumption.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (3) The application specified in section 59(2) of this Act shall include the particulars of the generating installations, the information required by legislation in order to receive the support and the information specified by the transmission network operator in order to determine the origin of the electricity when the origin and amount of the electricity cannot be established unequivocally.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (4) [Repealed – RT I, 28.06.2012, 1 – entry into force 08.07.2012]

 (5) A producer who uses wind as the source of energy may receive support until the total amount of 600 GWh electricity is generated from wind power in Estonia in a calendar year. Separate accounts are kept in respect of each calendar year.

 (6) The total amount of the support established by section 59(1)(5) of this Act shall not exceed 76,694,000 euros per calendar year.
[RT I 2010, 22, 108 - entry into force 01.01.2011]

 (7) The transmission network operator shall publish on its website the following information:
 1) the estimated amount of electricity to be produced from renewable energy sources in the following calendar month and the following calendar year;
 2) data concerning the amount of electricity generated from wind power during the given calendar year by calendar month;
 3) an estimate for achieving the amount of electricity specified in subsection 5 of this section for the current calendar year on the basis of the amount of electricity actually generated from wind power during preceding months;
 4) a list of the information specified in subsections 3 and 4 of this section and the procedure for submission thereof.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

§ 59².  Funding the support

 (1) The expenditure arising in relation to funding the support specified in section 59 of this Act shall be borne by consumers according to the volume of network services used and the amount of electricity consumed via a direct line.

 (2) A transmission network operator shall prepare and publish on its website by 1 December each year an estimate for the next calendar year concerning the sums required for funding the support for electricity generated from renewable energy sources or in an efficient cogeneration process, concerning the volume of network services to be provided to consumers and concerning the amount of electricity to be consumed via direct lines.

 (3) At the request of the transmission network operator, the distribution network operators and line possessors shall submit their estimates for the next calendar year concerning the volume of network services they expect to provide and the amount of electricity they expect to be consumed via direct lines.

 (4) On the basis of the estimate referred to in subsection 2 of this section, the transmission network operator shall determine the cost of funding the support in the following calendar year per one kilowatt-hour of network services used and of electricity consumed via direct lines, taking into account any sums by which the funding of the support during the 12 months immediately preceding the preparation of the estimate overshot the total of support payments or fell short of that, the interest earned on the overshot payments or the interest paid on the payments falling short and the justified expenses incurred as a result of administrating the payment of support. The transmission network operator shall publish on its website the cost of funding the support together with the underlying data and calculation methods.

 (5) The network operator shall send the consumer an invoice for network services and for electricity consumed via a line possessor’s direct line, setting out as a separate item the expense of funding the support for electricity generated from renewable energy sources and electricity generated in an efficient cogeneration process.

 (6) The distribution network operator and the line possessor shall submit to the transmission network operator, by the fifth day of every month, information regarding the amount of network services provided and the amount of electricity consumed via direct lines.

 (7) The transmission network operator shall, on the basis of the information referred to in subsection 6 of this section, by the seventh day of every month submit an invoice to the network operator or line possessor for the funding of the support. The amount specified in the invoice must be paid to the transmission network operator by the 21st day of the month, regardless of whether consumers have paid for the funding of the support.

 (8) If the information referred to under subsection 6 of this section is not submitted by the due date, the transmission network operator shall have the right to draw up an invoice on the basis of an estimate of the consumption by the consumers of the distribution network operator or line possessor. When accurate information is received, the transmission network operator shall set off the accounts on the invoice for the next month.

 (9) The transmission network operator shall pay the support specified in section 59 of this Act to the producer on the 21st day of the calendar month if the requirements provided in section 59¹ have been met.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

Chapter 6 NETWORK ACTIVITIES 

Division 1 General regulation of network activities 

§ 60.  Construction of network and provision of network services

 (1) A network or a line may be constructed and/or network services may be provided in the service area indicated in the activity licence of a distribution network operator only by the distribution network operator. This shall not apply if in the service area of the distribution network operator:
 1) a transmission network is constructed and network services are provided through this network by the transmission network operator;
 2) a direct line is constructed and it is used in accordance with section 61 of this Act and the corresponding activity licence;
 3) a direct current line which crosses the national border is constructed and it is used in accordance with section 61 of this Act and the corresponding activity licence.

 (2) It is not contrary to subsection 1 of this section when:
 1) an electrical installation which belongs to another distribution network operator is located in or crosses the service area indicated in the activity licence of the distribution network operator and network services are provided to the distribution network operator through the electrical installation;
 2) an electrical installation which belongs to another distribution network operator is located in or runs across the service area indicated in the activity licence of the distribution network operator, and network services are not provided to consumers located in the area through the electrical installation;
 3) another distribution network operator reconstructs an electrical installation which belongs to itself in the service area indicated in the activity licence of the distribution network operator and network services are not provided to consumers in the area through the electrical installation.
 4) there is a direct line in the service area specified in the activity licence of the distribution network operator.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

§ 61.  Direct line and line crossing the national border

 (1) An eligible consumer, a producer or a seller has the right to construct and use a direct line in order to supply electricity to itself or to an eligible consumer or to an undertaking which belongs to the same group as the producer or seller only if:
 1) the direct line is constructed on the immovable on which the producer’s power station is located or on an adjacent immovable;
 2) due to the need to amend the network contract entered into with the network operator pursuant to section 83 of this Act the builder of the direct line has agreed with the network operator the terms and conditions of consumption or production or has agreed to amend those terms and conditions for reasons related to the construction of the direct line and the connection of the generating installation to the network;
 3) the builder of the direct line has submitted to the network operator information regarding the maximum rated operating voltage of the line, the length of the line, its geographic coordinates, its layout and other principal technical parameters.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (1¹) A line possessor shall install a metering device which meets the requirements established in legislation in order to determine the amounts of electricity conveyed via its line and ensure the collection and processing of metering data pursuant to this Act and the grid code.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (1²) A direct line may be constructed in an area other than the area specified in point 1 of subsection 1 of this section only if
 1) the network operator has refused to connect the electrical installation of the eligible consumer, producer or seller to the network or to provide other network services on grounds other than those set out in sections 65(3)(1) or 65(3)(2) of this Act and if contesting such a refusal before the Competition Authority in accordance with section 99 of this Act has not yielded a solution which would ensure the requested electricity supply to the eligible consumer, producer or seller;
 2) the network operator in whose service area the direct line is to be constructed grants its written consent to the construction and use of the direct line.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (2) Additional electrical installations of new market participants shall not be connected to a direct line. Additional electrical installations of new market participants may be connected to a direct line and a direct line may be connected to the network only if the owner of the direct line transfers the direct line to the network operator in whose service area the direct line is located and assigns the direct line to the network operator for use.

 (3) If a direct line is acquired in accordance with subsection 2 of this section, the network operator shall connect the direct line to its network subject to the provisions of relevant legislation.

 (4) A direct current line which crosses the national border and which has a voltage exceeding 10 kV shall be connected to the transmission network in the location determined by the transmission network operator and in compliance with the technical conditions established by the transmission network operator.

 (5) An alternating current line which crosses the national border and which has a voltage exceeding 35 kV may be constructed and used only by a network operator who holds an activity licence for the activity specified in section 22(1)(4) of this Act.

 (6) If a market participant wishes to preserve the capacity of the existing network connection when using a direct line, the market participant shall pay to the network operator the charge specified in section 71(1)(3) for ensuring the possibility to use a network connection.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

§ 62.  Service area

 (1) The service area of a distribution network operator is the area which is set out in the decision to issue an activity licence to the operator and determined by the national border and/or geographical coordinates.

 (2) The service area of the transmission network operator is the territory of Estonia.

 (3) A network operator shall have one service area consisting of one or more defined areas.

 (4) The service areas of distribution network operators may not overlap.

§ 63.  Change of service area

 (1) Distribution network operators may mutually agree to modify their service areas such that the entire territory covered by the service areas of such distribution network operators before the modification would also be covered by their service areas after the modification.

 (2) Distribution network operators shall notify the Competition Authority of any modification to the service areas as specified in subsection 1 of this section and such notice shall include their mutual agreement on the modifications to the service areas. The notice shall contain information that enables the distribution network operators and the new boundaries of their service areas to be identified in accordance with section 62(1) of this Act.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (3) The distribution network operators shall also give notice of any modification of the service area to consumers affected by the changes.

 (4) Within thirty days from receipt of the notice specified in subsection 2 of this section, the Competition Authority shall concurrently make the corresponding amendments to the information concerning the service areas indicated in the decisions to issue activity licences to the distribution network operators.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (5) A modification of a service area shall become effective when the Competition Authority has concurrently made the corresponding amendments to the information concerning the service areas indicated in the decisions to issue activity licences to the distribution network operators and the consumers affected by the changes have been notified of the modifications.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (6) Distribution network operators shall notify consumers of any modifications to service areas in at least one daily newspaper of national circulation.

§ 64.  Network owner

 (1) If the owner of a network is not the network operator who holds an activity licence for the provision of network services through the network which belongs to the owner, the network owner shall ensure that the network is used by a network operator who holds the necessary activity licence and who is responsible for performance of the obligations of the network operator as provided in legislation and for compliance with the conditions of the activity licence.

 (1¹) A network operator in whose service area the consumers are located who have previously been connected to the network specified in subsection 1 of this section, must continue to provide the network services to those consumers under the same technical conditions, taking into account the state of repair and the capacity of the network which it has been given to use.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (2) If the owner of a network transfers the network to another person, the owner shall promptly notify the Competition Authority thereof. The names, personal identification codes or registration numbers in the commercial register and contact details of the transferor and transferee and information that makes it possible for the transferred network to be identified shall be set out in the notice.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (3) At the request of a network owner, the Competition Authority may release the network owner from the performance of the obligation specified in subsection 1 of this section if the network owned by the owner is located in the service area of another network operator and is not necessary for supplying electricity to consumers.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

Division 2 Obligations of network operator 

§ 65.  Provision of network services

 (1) A network operator shall provide the following network services to the consumers, producers, line possessors or any other network operators within its service area:
 1) on the basis of a corresponding request, connection to the network at the connection point of any electrical installation which conforms to the requirements and which is located in its service area;
 2) on the basis of a corresponding request, amendment of the consumption or generation conditions;
 3) enabling a network connection to be used at the connection point;
 4) transmitting electricity through its network to the connection point or from the connection point;
 5) ensuring the installation of a metering device conforming to the requirements of legislation to determine the amounts of electricity transmitted through its network;
 6) ensuring the collection and processing of metering data;
 7) provision of supplementary services directly related to the network services specified in points 1 - 6 of this subsection.

 (2) A network operator shall observe the principle of equal treatment of market participants when providing network services.

 (3) A network operator has the right to refuse to provide network services if:
 1) the electrical installations of the user of network services do not conform to the requirements of legislation or to the technical conditions established by the network operator for connection to the network;
 2) the provision of network services is not possible for any other reason due to the user of network services;
 3) the provision of network services is not possible for reasons independent of the network operator;
 4) the network of the network operator lacks the necessary transmission capacity for the provision of network services;
 5) the corresponding right of the network operator arises on any other grounds provided in this Act.

 (4) A network operator shall provide the reasons for any refusal to provide network services. The reasons must state the legal basis for refusal. The network operator shall notify the Competition Authority of its refusal to provide network services on the ground set out in point 4 of subsection 3 of this section.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (5) Quality requirements for network services and the conditions for the reduction of connection charges in the event that those quality requirements are violated shall be established by the Minister of Economic Affairs and Communications.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (6) Establishment of the conditions for the reduction of connection charges shall be based on the duration of electricity interruptions caused by failures.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (7) The network operator shall publish on its website information regarding the network services and their prices and regarding the manner for consumers to access their consumption data.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (8) In the case that a consumer has expressed a corresponding request, the network operator shall communicate the consumption data of the consumer to him or her in accordance with the format for exchange of data specified in the grid code. The release of the data may entail a charge pursuant to section 19 of the Personal Data Protection Act.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

§ 66.  Network development obligation

 (1) A network operator shall develop the network within its service area such that the continued provision of network services is ensured to all consumers, producers, line possessors and any other network operators connected to the network, in accordance with their justified needs, legislation and the conditions of the activity licence and that a proper electrical installation of a market participant located within the service area thereof can be connected to the network.
[RT I 2007, 23, 120 - entry into force 01.05.2007]

 (2) By 15 April each year, a distribution network operator shall submit a written estimate, as precise as possible, to the Competition Authority of the total likely demand for usage capacity within its entire network for each of the seven years following submission of the estimate. The distribution network operator shall indicate the preconditions on which its estimate is based and shall specify all relevant details.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (3) The Competition Authority shall promptly forward the estimates specified in subsection 2 of this section to the transmission network operator who shall, by 15 June each year, submit to the Competition Authority a written estimate, which is as precise as possible, of the total likely demand for usage capacity in the entire transmission network for each of the seven years following submission of the estimate. The transmission network operator shall indicate the premises on which its estimate is based and shall specify all relevant details.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (4) Together with the estimate specified in subsections 2 and 3 of this section, the network operator shall submit a written detailed plan to the Competition Authority on how it intends to provide network services to satisfy the likely demand for usage capacity indicated in the estimate.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (5) If, on the basis of an estimate specified in subsection 2 or 3 of this section or the plan specified in subsection 4 or in any other manner, the Competition Authority finds that the activities of a distribution network operator may prove insufficient in order to ensure the provision of network services in accordance with the justified needs of the users of network services, the Competition Authority shall communicate its position to the distribution network operator and the transmission network operator. The position shall be substantiated.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (6) The distribution network operator and the transmission network operator shall submit their written opinion on the position of the Competition Authority to the Competition Authority within thirty days as of receipt thereof.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (7) Having regard to the substantiated positions expressed in the opinions specified in subsection 6 of this section, the Competition Authority shall decide whether the network operator must implement general measures in its network as a whole in the future, and which measures they should be, to ensure the provision of network services in accordance with the justified needs of the users of network services. If necessary, the Competition Authority shall issue a corresponding enforcement order to the network operator or amend the conditions of the activity licence of the network operator.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

§ 67.  Metering

 (1) A network operator shall ensure that the amounts of electricity supplied to and from its network are determined and that metering data are collected and then processed by means of metering devices conforming to the technical requirements established by legislation, in accordance with legislation and the contract for the provision of network services (metering).

 (2) Remote reading devices shall be used in respect of market participants whose balance cannot be determined using a combination of metering and load duration curves pursuant to section 46(5) of this Act.

 (3) The provisions of section 2 of this section do not apply in respect of consumers who purchase electricity by exercising the obligation to sell specified in section 76 of this Act from the seller who is designated by the network operator and who sells electricity to the network operator to cover network losses.

 (4) Technical requirements for metering devices used in respect of different groups of consumers and electricity undertakings shall be provided in the grid code.

 (5) A network operator shall ensure that a user of network services is notified of the metering results and the calculation, on the basis thereof, of the charge for such network services in accordance with legislation and the relevant contract. The network operator shall also ensure that the seller is notified of the metering results in respect of users of network services who are connected to the network of the network operator to whom the seller sells electricity.

 (6) In order to carry out metering within the service area of a network operator, the network operator may, at the request of a market participant or the seller who sells electricity to the market participant or on its own initiative, install a metering device which is technically more sophisticated than that prescribed for the market participant by this Act and the grid code, and carry out metering by means of that device. The person who made the request for the installation of a technically more sophisticated metering device shall reimburse the network operator for the cost of the metering device and the expenses associated with its installation as well as any reasonable extra expenses incurred in the collection and processing of metering data.

 (7) The grid code shall set out the procedure for calculation of the amounts of electricity supplied to or from the network and for calculation of electricity losses between a metering device and the connection point if the metering of electricity amounts is carried out elsewhere than the connection point.

 (8) A network operator may perform the obligations provided for in this section itself or authorise a third party in part or in full to perform such obligations.

§ 68.  Illegal use of electricity or of network services
[RT I 2007, 23, 120 - entry into force 01.05.2007]

 (1) The use of electricity or network services is illegal if there is no legal basis for the use or if requirements arising from this Act are violated, in particular if:
 1) the metering device is damaged or its reading is tampered with or the operation thereof is affected in another manner;
 2) electricity is used without a valid contract between the network operator and the seller;
 3) the seal or verification mark on the metering device or any other device preventing access to the metering device or preventing its operation from being interfered with or recording its operation is removed or damaged;
 4) the connection to the network of a network operator lacks a metering device which conforms to the requirements and which has been installed by the network operator.
[RT I 2007, 23, 120 - entry into force 01.05.2007]

 (1¹) The activity specified in point 2 of subsection 1 of this section shall not be deemed illegal use of electricity or network services if:
 1) the network operator and the seller regularly submit invoices to the consumer for network services and electricity used and the consumer has paid the invoices on time;
 2) the consumer pays for network services and the electricity used at least once every three months if no invoices have been submitted;
 3) the open supply contract of a market participant has been interrupted and the network operator to whose network the market participant’s electricity installation is connected provides open supply to the market participant until the execution of a new contract.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

 (2) A market participant shall compensate the network operator for the cost of the electricity and network services used illegally and for the harm caused by the illegal use of electricity and network services and shall reimburse the operator for any reasonable expenses incurred in determining the extent of such harm.
[RT I, 28.06.2012, 1 - entry into force 01.07.2012]

 (3) The procedure for determining the amount of electricity and the volume of network services used without authorisation and the cost of electricity and network services used illegally shall be established by the Minister of Economic Affairs and Communications.
[RT I, 28.06.2012, 1 - entry into force 01.07.2012]

§ 69.  Confidentiality requirement

 (1) The network operator shall maintain the confidentiality of any information concerning the amounts of electricity generated or consumed by a market participant that it receives in the course of performing its functions. This provision does not apply if:
 1) the information has already been made public or has become known in any manner other than through a breach of the obligations of the network operator;
 2) the disclosure of such information to a third party is necessary for performance of the obligations of the network operator arising from this Act;
 3) the network operator is required to disclose the information pursuant to legislation.

 (2) The network operator shall observe the principle of equal treatment in publishing any information related to its work.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

§ 70.  Obligation to provide information

 (1) A network operator shall provide the Competition Authority, at the latter’s request, with information necessary for the Competition Authority to perform the functions imposed on it by the law.

 (2) A network operator shall promptly notify the Competition Authority of its merger, division, reorganisation or dissolution or of the commencement of bankruptcy or liquidation proceedings in respect of it, as well as of any other circumstances that may prevent the network operator from performing the obligations specified in legislation or arising from the conditions of the activity licence.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (3) The technical conditions established by a network operator for connection to its network and the principles for calculating the charge payable for connection to the network and for amendment of consumption or generation conditions (hereinafter connection conditions) shall be transparent and in compliance with the principle of equal treatment.

 (4) A network operator publishes on its website the connection conditions mentioned in subsection 3 of this section.

 (5) The transmission network operator shall make the connection conditions known to the European Commission.

 (6) A network operator shall publish basic information concerning the effectiveness, quality and profitability of its network activities on its website or in at least one daily newspaper of national circulation and shall also communicate such information to the Competition Authority.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (7) At the request of the Estonian Defence Resources Office, a distribution network operator shall provide the information to be entered into the national register of support of Estonia as the host nation. The network operator shall provide the information without charge.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

Division 3 Charges for network services 

§ 71.  Network charges

 (1) The charges payable for network services provided by a network operator (hereinafter, ‘network charges’) are as follows:
 1) a charge for connection to the network (hereinafter, ‘connection charge’);
 2) a charge for amendment of the conditions of consumption or generation (hereinafter, ‘charge for amendment of conditions’);
 3) a charge for ensuring the possibility to use a network connection (hereinafter, ‘charge for using a network connection’);
 4) a charge for the transmission of electricity (hereinafter, ‘transmission charge’);
 5) charges for extra services directly related to network services;
 6) charges for reactive power supplied to the network and acquired from the network.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (2) A network operator shall establish network charges in its service area in accordance with this Act and the legislation enacted on its basis.

 (3) The criteria adopted by a network operator as the basis for establishing network charges shall be transparent and in compliance with the principle of equal treatment.

 (4) When setting network charges, the need to ensure security and efficiency of supply and the integration of markets as well as the results of research conducted in this area shall be taken into consideration.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (5) The rate of network charges must make it possible for a network operator to perform the obligations arising from legislation and fulfil the conditions of the activity licence, and to ensure a justified return on invested capital.

 (6) A network operator shall set the transmission charge such that it guarantees market participants who have paid a connection charge and a charge for use of the network connection the possibility of transmitting electricity throughout the entire system.

 (7) Network charges may differ from one network operator to another.

§ 72.  Principles for calculating network charges

 (1) Within the service area of a network operator, the transmission charge and the charge for the use of a network connection shall not depend on the location of the market participant.

 (2) A network operator is entitled to distinguish the network charge for a network service from other conditions for the provision of the network service in relation to the level of voltage and security of supply, in accordance with the relevant provisions of this Act.

 (2¹) In the case of infringement of quality requirements for the provision of network services the network operator is required to reduce the network charges for those services pursuant to the requirements of legislation established on the basis of section 65(5) of this Act.
[RT I 2004, 86, 583 - entry into force 01.01.2005]

 (3) A network operator is entitled to distinguish categories of market participants and to apply different network charges and other conditions for the provision of network services for such categories in accordance with the relevant provisions of this Act.

 (4) The Competition Authority shall prepare and publish uniform methods for the calculation of justified network charges specified in sections 71(1)(3) to 71(1)(5) of this Act based on the weighted average capital cost and shall approve the network charges of network operators who apply on such methods. The methods applied by the Competition Authority shall amongst other things give due regard to the provisions of section 71.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (5) In order to reduce regional price differences that result from differing network charges, measures of support may be implemented pursuant to a resolution of the Government of the Republic to support a network operator or consumers.

§ 73.  Approval of network charges and standard terms and conditions

 (1) A network operator shall obtain approval from the Competition Authority for methods for the calculation of network charges specified in sections 71(1)(1) and 71(1)(2) of this Act, for network charges specified in points 3 - 6 of section 71(1) and for standard terms and conditions for the provision of network services. The requirement for approval does not apply to the transmission charge for the transit of electricity. When approving network charges, the Competition Authority shall amongst other things have regard to the provisions of sections 40, 44, 59, 71 and 72 above and to the relevant standard terms and conditions of the network operator.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (2) The Competition Authority shall not grant approval to standard terms and conditions if the content thereof does not reflect the balance of rights and obligations of the network operator and a user of network services which was the basis for approval of the network charge or if a standard term or condition is unfairly prejudicial the other party within the meaning of the Law of Obligations Act.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (3) A network operator is entitled to request the Competition Authority’s approval of different network charges collectively as well as separately and the Competition Authority is obligated to determine such requests in accordance with this Act.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (4) A network operator shall charge a fee for the network services it provides and the charge shall be calculated on the basis of the relevant network charges approved by the Competition Authority. This provision does not apply to connection to the network, amendment of the consumption or generation conditions or the transmission of electricity in the case of transit.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

§ 74.  Provision and publication of information

 (1) A network charge established by a network operator shall become effective on the date determined by the network operator after its publication in at least one daily newspaper of national circulation, provided that at least ninety days have passed since publication. This provision does not apply to the connection charge, the charge for the amendment of conditions and the transmission charge for the transit of electricity.

 (2) A network operator shall publish a notice concerning amendment of the standard terms and conditions for the provision of its network services or concerning the establishment of new standard terms and conditions in at least one daily newspaper of national circulation and at least thirty days before the amendments or new standard terms and conditions become effective.

 (3) At the request of a market participant, a network operator shall provide the market participant with information concerning the rates of the network charges and the standard terms and conditions for the provision of network services which apply in its service area.

 (4) A network operator shall promptly notify the European Commission and the Competition Authority of any request for the transmission of electricity by transit on the basis of an electricity sale contract entered into for a term of more than one year.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (5) In the case of receiving a corresponding request, the network operator shall promptly commence negotiations over the conditions for the transmission of electricity by transit and shall notify the European Commission and the Competition Authority if the negotiations do not lead to the conclusion of a contract within twelve months as of the submission of the request.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

Chapter 6¹ SUPPORT FOR PAYMENT OF CONNECTION CHARGE 
[RT I 2009, 5, 34 - entry into force 22.01.2009]

§ 74¹.  Support for payment of connection charge

 (1) The purpose of the provision of support allocated from the national budget for the payment of connection charge (hereinafter, ‘support for connection charge’) is to compensate persons living in a disadvantaged region for the discrimination caused by uneven development of the Estonian electricity sector and to enable persons the supply of electricity to whose household has been interrupted, or who have never been connected to the network, for reasons beyond the control of those persons to receive government support for paying the connection charge.

 (2) Support for connection charge shall not be provided to natural persons residing in densely populated areas within the meaning of section 7(4) of the Land Reform Act and in built-up areas with more than 50 residents.

 (3) Support for connection charge shall be provided on the basis of a scheme for the provision of support for connection charge, which consists of the main list and a reserve list of recipients of the support, and which shall be reviewed and approved separately for each calendar year. The scheme for the provision of support for connection charge shall be approved by the Minister of Regional Affairs.

 (4) The specific conditions and the procedure for applications, for consideration of applications and for provision of the support for connection charge shall be established by a regulation of the Minister of Regional Affairs. The regulation of the Minister of Regional Affairs shall set out the procedure for the submission and consideration of applications, the criteria for assessing applications, the procedure for making decisions concerning the grant or refusal of applications, the procedure for making support payments and for reclaiming such payments.

 (5) Applications for the support for connection charge may be submitted until 1 April 2010. Applications shall be submitted and considered within the term provided in the legislation established on the basis of subsection 4 of this section.

 (6) If the main circuit breaker of the junction box of the electrical installation specified in the application exceeds 25A, the cost of the part exceeding 25A shall not be covered by the support for connection charge.
[RT I 2009, 5, 34 - entry into force 22.01.2009]

§ 74².  Requirements for applicants for and recipients of support for connection charge

 (1) A natural person (hereinafter, ‘applicant for support for connection charge’) is entitled to apply for support for connection charge in order to arrange the supply of electricity to a residential building, which has not been connected to the power network and is located in a low density population area on a registered immovable entered in the Land Register and which has been erected not later than on 1 October 1995 and has been entered in the Register of Construction Works, provided the residential building is owned or lawfully occupied by the applicant, is suitable for all-season residence, has been entered in the population register as the applicant’s permanent residence not later than on 1 January 2008 and:
 1) has previously been connected to the power network, but the connection was interrupted for reasons beyond the control of the person before 17 May 2001, or;
 2) has never been connected to the power network.

 (2) An applicant for the support for connection charge must not have tax arrears unless the applicant has been allowed to pay those arrears by instalments and has not failed, for two or more consecutive calendar months, to pay the instalments specified in the schedule of instalments.

 (3) The requirements for applicants for the support for connection charge provided in subsections 1 and 2 of this section shall apply to natural persons whose applications have been granted and who have been entered in the scheme for the provision of support for connection charge (hereinafter, ‘recipients of the support for connection charge’).
[RT I 2009, 5, 34 - entry into force 22.01.2009]

§ 74³.  Rate of own contribution to support for connection charge

  The rate of an applicant’s own contribution to the support for connection charge shall be 10 percent of any amount of the charge which is less than 12,780 euros and 1 percent of any amount of the charge by which the support exceeds 12,780 euros. The minimum amount of the contribution shall be 635 euros. The contribution shall be calculated on the basis of the connection charge including VAT and the administrative fee for connection. The contribution shall be calculated on the basis of the connection charge provided in the connection agreement.
[RT I 2010, 22, 108 - entry into force 01.01.2011]

§ 74⁴.  Procedure in relation to support for connection charge in municipality or city administration

 (1) An applicant for the support for connection charge shall submit an application for support for connection charge to the municipality or city administration of the applicant’s residence. An application for connection which was submitted to the network operator and the connection offer from the network operator shall be appended to the application. A connection offer made by the network operator shall be valid for one calendar year as of the approval of the scheme for the provision of support for connection charge. Upon the annual re-approval of the scheme for provision of support for connection charge the municipality or city administration shall request the network operator to provide a new connection offer for any item in the reserve list of the scheme for the provision of support for connection charge or for any items of the main list of the scheme whose construction was delayed during the year.

 (2) The municipality or city administration shall assess the compliance of the applicant and the application for support for connection charge with the requirements provided in the legislation established on the basis of sections 74² and 74¹(4) of this Act and shall, by way of on-site inspection within 30 calendar days from receipt of the application by the municipality or city administration, verify the compliance of the application with established requirements and the accuracy of the information presented in the application. An applicant for support for connection charge is obligated to facilitate the on-site inspection and to provide any support required for that purpose.

 (3) In the case of discovery of defects in an application, the applicant for support for connection charge shall be immediately notified of the defects and a term shall be specified for the elimination of such defects, while correspondingly extending the term for consideration of the application.

 (4) The municipality or city administration shall forward an application they have declared to comply with the requirements to the Ministry of the Interior within five calendar days as of declaring the application to comply with the requirements.

 (5) If an applicant does not meet the established requirements, the municipality or city administration shall make a decision to refuse the application, which shall be transmitted to the applicant for support for connection charge.

 (6) The municipality or city administration shall append the following documents to the applications declared to comply with the requirements:
 1) assessment of the municipality or city administration concerning compliance of the application with the requirements provided in the legislation established on the basis of sections 74² and 74¹(4) of this Act and a proposal prepared, as a result of on-site inspection, to grant the application;
 2) a written consent of the municipality or city administration for the construction of the electrical installation.
[RT I 2009, 5, 34 - entry into force 22.01.2009]

§ 74⁵.  Procedure in relation to support for connection charge in Ministry of the Interior

 (1) The applications submitted to the Ministry of the Interior by a municipality or city administration shall be considered by the Ministry of the Interior. The Ministry of the Interior shall submit the applications which comply with the requirements to the advisory commission (hereinafter, ‘the commission’) convened by the Minister of Regional Affairs for evaluation of the applications.

 (2) The commission shall rank the applications which comply with the requirements by evaluating these with respect to the number of beneficiaries, the feasibility of the project as described in the connection offer made by the network operator and the cost of the project per beneficiary. In the case of applications of equal merit, preference shall be given to applicants who are long-term residents at the same location and applications which concern residential buildings with a higher number of residents who are under 18 years of age.

 (3) The commission shall make a proposal to the Minister of Regional Affairs to grant an application if the application complies with the requirements provided in the legislation established on the basis of sections 74² and 74¹(4) of this Act, and shall make a proposal to the Minister of Regional Affairs to refuse the application if the application fails to comply with the requirements.
[RT I 2009, 5, 34 - entry into force 22.01.2009]

§ 74⁶.  Making and amending the decision to grant or refuse an application

 (1) The Minister of Regional Affairs shall make the decisions to grant or refuse an application within thirty calendar days from receipt of the applications by the Ministry of the Interior. In the case it is necessary to ascertain additional facts, the Ministry of the Interior is authorised to extend the term for considering the application by up to thirty calendar days.

 (2) The Minister of Regional Affairs may, on a proposal of the commission, amend or revoke the decision to grant an application if:
 1) the network operator discovers valid reasons of an objective nature which prevent it from constructing the electrical installation and such reasons were unforeseeable at the time of making the decision;
 2) the applicant for support for connection charge fails to pay his or her own contribution in the amount and within the term specified in the decision;
 3) the applicant for the support for connection charge submitted inaccurate or incomplete information or refused to facilitate verification of the compliance of the application with the requirements;
 4) the applicant for support for connection charge fails to meet the requirements provided in the legislation established on the basis of sections 74² and 74¹(4) of this Act;
 5) the maximum amount of support in the scheme for the provision of support for connection charge increases pursuant to section 747(4);
 6) if the situation specified in section 109¹(1) of this Act has arisen.
[RT I 2009, 5, 34 - entry into force 22.01.2009]

§ 74⁷.  Preparation and amendment of scheme for provision of support for connection charge

 (1) The applicants for support for connection charge whose applications have been granted shall be entered in the scheme for the provision of the support which shall set out, by municipal administration unit, the recipients of the support, the maximum amount of the support and the rate of own contribution provided in section 74³ of this Act, and shall specify, for each recipient, the term for connection to the network pursuant to the connection offer made by the network operator.

 (2) The potential recipients of the support for connection charge to whom it is not possible to allocate support from the budget for the current calendar year shall be entered in the reserve list of the scheme as a list of preferred applicants.

 (3) The Minister of Regional Affairs may, on a proposal of the commission, initiate amendment of the scheme for the provision of support for connection charge if at least one of the following circumstances becomes evident:
 1) it is not possible to connect a residential building specified in an application to the network within the term set out in the scheme;
 2) the network operator discovers valid reasons of an objective nature which prevent it from constructing the electrical installation and such reasons were unforeseeable at the time of making the decision;
 3) an applicant for the support fails to pay his or her own contribution in the amount and within the term specified;
 4) an applicant for the support has submitted inaccurate or incomplete information or has withheld information;
 5) if the situation specified in section 109¹(1) of this Act has arisen.
 6) the recipient of support fails to comply with the requirements provided in the legislation established on the basis of sections 74²and 74¹(4) of this Act;
 7) connection of the residential building specified in the scheme for the provision of the support turns out to involve costs that exceed the maximum amount of support specified in the scheme.

 (4) In the case specified in point 7 of subsection 3 of this section, the maximum amount of support specified in the scheme for the provision of support for connection charge may be increased by 10 percent on the basis of a substantiated request of the network operator.
[RT I 2009, 5, 34 - entry into force 22.01.2009]

§ 74⁸.  Processing of data concerning applicants for and recipients of support for connection charge and disclosure of list of recipients of support

 (1) The Ministry of the Interior, municipality or city administrations and network operators may process and exchange data concerning applicants for and recipients of the support for connection charge and other information or documents obtained in the course of processing in order to perform the functions provided in this Act and the legislation enacted on its basis.

 (2) The Ministry of the Interior shall notify an applicant for support for connection charge of the grant or refusal of the application within five calendar days as of the making of the decision to grant or refuse the application.

 (3) The Ministry of the Interior shall publish on its website the names of recipients of the support for connection charge entered in the main and the reserve list of the scheme for the provision of the support for connection charge and the amount of the support.
[RT I 2009, 5, 34 - entry into force 22.01.2009]

§ 74⁹.  Making payments of support to network operators

 (1) In order to connect a residential building to a power network, the municipality or city administration shall enter into a tripartite agreement with the recipient of the support who has been entered in the scheme for the provision of the support and the network operator, whereby the municipality or city administration guarantees payment of the support to the network operator if connection to the network is effected in compliance with established requirements. The applicant shall pay his or her own contribution to the network operator upon entry into a connection agreement with that operator.

 (2) The support for connection charge shall be paid to the network operator after the residential building has been connected to the network pursuant to the directive of the Minister of Regional Affairs specified in section 74¹⁰(2) of this Act.
[RT I 2009, 5, 34 - entry into force 22.01.2009]

§ 74¹⁰.  Procedure for making payments of support for connection charge

 (1) The Ministry of the Interior shall transfer the funds allocated for the support to the local authorities or a foundation established by the government (hereinafter, ‘the foundation’) on the basis of an agreement concerning the use of an allocation from the national budget. The funds allocated from the budget shall be transferred to the foundation as a single allocation in compliance with the maximum amounts of support specified in the main list of the scheme for the provision of the support for connection charge. The funds allocated from the national budget shall be transferred to local authorities as a single allocation or on one by one basis after the connection of a residential building to the network. The local authority shall submit an application to the Ministry of the Interior for an amount which may not exceed the smallest of the following amounts:
 1) the maximum amount of support specified in the main list of the scheme for the provision of the support for connection charge;
 2) the amount specified in the connection agreement entered into with the network operator, excluding the own contribution provided in section 74³ of this Act;
 3) the invoice submitted to the local authority by the network operator on the basis of the connection agreement, excluding the own contribution provided in section 74³ of this Act.

 (2) In order to pay the support for connection charge to the network operator, the Minister of Regional Affairs shall issue a directive approving the final amount of the support for connection charge.

 (3) The foundation shall transfer the amount of the support for connection charge payable on the basis of the directive of the Minister of Regional Affairs specified in subsection 2 of this section to the local authorities who shall pay the support for connection charge to the network operator.
[RT I 2009, 5, 34 - entry into force 22.01.2009]

§ 74¹¹.  Payment of compensation to network operator and the reclaiming and repayment of unjustified compensation

 (1) If circumstances beyond the control of the network operator arise, as a result of which the network operator cannot connect a residential building to the power network, the municipality or city administration shall pay compensation to the network operator pursuant to the procedure provided in section 74¹⁰ of this Act on the basis of the invoices submitted by the network operator for the work performed to the extent of the justified and documented costs incurred in the course of such work.

 (2) A municipality or city administration has the right to reclaim, by an administrative act, in part or in full any unjustified compensation paid to the network operator in the case specified in subsection 1 of this section if the network operator has submitted inaccurate or incomplete information in order to receive compensation.

 (3) The term for repayment of unjustified compensation is up to 90 calendar days as of issue of the administrative act specified in subsection 2 of this section.

 (4) In the case of failure to comply with the decision to reclaim unjustified compensation, the municipality or city administration shall have recourse, regarding the decision specified in subsection 2 of this section, to compulsory execution pursuant to the procedure provided in the Code of Enforcement Procedure.

 (5) The municipality or city administration is required to transfer the funds repaid to it into the revenue account of the national budget or to the foundation.
[RT I 2009, 5, 34 - entry into force 22.01.2009]

§ 74¹².  Supervision over support for connection charge

  Supervision over the use of funds allocated to local authorities or the foundation towards support for connection charge shall be exercised by the Ministry of the Interior.
[RT I 2009, 5, 34 - entry into force 22.01.2009]

§ 74¹³.  Reclaiming and repayment of support for connection charge

 (1) A municipality of city administration is authorised to reclaim, by an administrative act, in part or in full the support for connection charge from a recipient of the support if at least one of the following circumstances has arisen:
 1) the applicant for the support has submitted inaccurate or incomplete information or has withheld information;
 2) the recipient of the support fails to comply with the requirements provided in the legislation established on the basis of sections 74² and 74¹(4) of this Act.

 (2) If a violation specified in subsection 1 of this section has taken place, the recipient of the support for connection charge is required to repay the support to the municipality or city administration in the amount and within the term set out in the administrative act specified in subsection 1 of this section.

 (3) The term for repayment of the support for connection charge shall be at least 90 calendar days from the issue of the administrative act specified in subsection 1 of this section.

 (4) Local authorities are required to transfer the funds repaid to them into the revenue account of the national budget or to the foundation.

 (5) In the case of failure to comply with the decision to reclaim the support, the municipality or city administration shall have recourse, regarding the decision specified in subsection 1 of this section, to compulsory execution pursuant to the procedure provided in the Code of Enforcement Procedure.

 (6) In the case of a violation specified in subsection 1 of this section, the Ministry of the Interior is authorised to reclaim the corresponding funds from local authorities or the foundation.

 (7) A municipality or city administration is required to notify the Ministry of the Interior of any violations discovered in relation to the use of the support.
[RT I 2009, 5, 34 - entry into force 22.01.2009]

§ 74¹⁴.  Submission of report on support for connection charge to municipality or city administration

  The network operator is required to submit a report on the work performed and the costs incurred to the municipality or city administration within thirty days as of establishment of a network connection for the recipient of the support for connection charge.
[RT I 2009, 5, 34 - entry into force 22.01.2009]

Chapter 7 SALE 

§ 75.  Sale arrangements

 (1) A market participant may only purchase and/or consume electricity that is sold to it by the network operator to whose network the electrical installation of the market participant is connected, or by a seller designated by the network operator.

 (2) The provisions of subsection 1 of this section shall not apply when:
 1) an eligible consumer purchases electricity for its own use;
 2) a seller purchases electricity and sells all of the purchased electricity to eligible consumers or exports it;
 3) a consumer purchases electricity from a producer who belongs to the same group of companies as the consumer;
 4) electricity is purchased by the system operator;
 4¹) a network operator or a seller designated by the network operator purchases electricity in accordance with subsection 3 of this section;
 5) a market participant generates electricity for its own use;
 6) a line possessor purchases electricity to cover network losses.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

 (3) In order to cover network losses and for sale to market participants who are subject to the obligation specified in subsection 1 of this section, the network operator or a seller designated by the network operator shall purchase electricity which is:
 1) generated, from oil shale mined in Estonia, by a producer possessing generating installations which are located in Estonia and whose total net capacity amounts to at least 500 MW;
 2) generated by a small producer;
 3) generated from renewable energy sources;
 4) generated in a combined heat and power production regime.
[RT I 2007, 23, 120 - entry into force 01.05.2007]

 (4) A network operator or a seller designated by the network operator does not have the obligation set out in subsection 3 of this section in the case of the purchase of electricity in an amount that does not, during one calendar year, exceed the amount of electricity consumed for their own use during the preceding calendar year by eligible consumers connected to the network of the network operator. Also, the obligation specified in subsection 3 of this section is not applicable to the extent to which it is not possible for the producers specified in subsection 3 of this section to sell the entire amount of electricity necessary for the performance of the obligation to the network operator or a seller designated by the network operator.

 (5) A producer specified in subsection 3 of this section who possesses generating installations which have a total net capacity of at least 500 MW and which are located in Estonia shall sell electricity to the extent of the purchase obligation of the network operator or the seller designated by the network operator as provided in subsections 3 and 4 of this section at prices whose annual average does not exceed the ceiling rate of the weighted average price of electricity which is calculated on the basis of the prices of electricity sold during the trading period and which has been approved by the Competition Authority.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

 (5¹) On the basis of an application of a market participant who possesses generating installations with a total net capacity of at least 500 MW which are located in Estonia, the Competition Authority shall verify whether, in each trading period, the network operator and the seller designated by the operator used the electricity purchased from the producer referred to in point 1 of subsection 3 of this section only for compensating network losses and for sale to a market participant to whom the obligation referred to in subsection 1 extends, and shall issue mandatory enforcement orders to the network operator and the seller designated by the operator if necessary.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

 (5²) If, during a trading period, the network operator and the seller designated by the operator do not use the electricity purchased from a producer referred to in point 1 of subsection 3 of this section exclusively for compensating network losses and for sale to a market participant to whom the obligation referred to in subsection 1 extends, the network operator shall pay the producer, for any electricity purchased in excess of such losses and such sales, triple the ceiling price referred to in subsection 5.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

 (6) The price limits to be approved on the basis of subsection 5 of this section shall make it possible for a producer to:
 1) cover the costs incurred in maintaining the production capacity necessary to perform the producer’s obligations;
 2) cover the costs incurred in the generation of electricity;
 3) cover the costs incurred in the performance of the obligations arising from legislation and the activity licence;
 4) ensure a justified return on invested capital.

 (7) An undertaking engaged in the mining of oil shale in Estonia shall sell electricity to a producer specified in subsection 5 of this section at a price that does not exceed the price limit approved the Competition Authority. That price limit shall enable an undertaking engaged in the mining of oil shale in Estonia to:
[RT I 2007, 66, 408 - entry into force 01.01.2008]
 1) cover the costs incurred in the mining, processing, transport and sale of oil shale;
 2) cover the costs incurred in the performance of the obligations arising from legislation;
 3) ensure a justified return on invested capital.

 (8) [Repealed – RT I, 28.06.2012, 1 – entry into force 08.07.2012]

§ 75¹.  Information to be submitted together with invoice

  A seller shall, together with the invoice and the information offered to the consumer, present the consumer with the following information:
 1) the distribution of energy sources which were used for the generation of electricity by the producer or which were purchased from the producer during the financial year preceding the period of the sale;
 2) the proportion of electricity purchased from a power exchange in the financial year preceding the period of the sale;
 3) a reference to a website which sets out information concerning the environmental impact caused by emissions of CO2 and SO2, the oil shale ash that must be deposited, and radioactive waste, which were released in the course of producing the electricity supplied by the seller during the financial year preceding the period of the sale;
 4) information concerning the rights of the consumer and the possible ways of resolving disputes.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

§ 76.  Obligation to sell

 (1) Until 31 December 2012, a network operator shall sell electricity to a market participant who possesses an electrical installation connected to the operator’s network at a price specified in section 81 of this Act (hereinafter, ‘the obligation to sell’) if all of the following conditions are satisfied:
 1) the market participant is not an eligible consumer;
 2) the obligation specified in subsection 1 of section 75 extends to the market participant;
 3) the market participant purchases electricity for its own use or sells all of the purchased electricity to a market participant to whom the obligation specified in subsection 1 of section 75 extends.

 (2) Until 31 December 2012, a network operator shall, during a trading period when the price of electricity is not listed on the power exchange, sell electricity to an eligible consumer who possesses an electrical installation connected to the operator’s network at a price specified in section 81 of this Act if the consumer’s electricity contract stipulates a link to the electricity price at the power exchange.

 (3) A network operator shall itself perform the obligation to sell as specified in subsections 1 and 2 of this section or, if the network operator is not itself engaged in the sale of electricity, it shall ensure that the obligation to sell is performed by the seller who sells electricity to the network operator, on the basis of an activity licence, to compensate for network losses.

 (4) The seller specified in subsection 3 of this section is also the seller designated by the network operator for the purposes of section 75 of this Act.

 (5) If a market participant purchases electricity within the framework of the obligation to sell of the network operator as specified in subsection 1 of this section, that market participant may not purchase electricity from any other seller.

 (6) A network operator shall not be subject to the obligation to sell specified in subsections 1 and 2 of this section in respect of a consumer if the network contract or electricity contract entered into with the consumer has been cancelled on the grounds provided in this Act.
[RT I 2010, 8, 40 - entry into force 01.04.2010]

§ 76¹.  Universal service

 (1) A small consumer is entitled to purchase electricity from the network operator to whose network his or her electrical installation is connected, for a price which is reasonable and justified and which conforms to the principle of equal treatment (hereinafter, ‘universal service’).

 (2) A network operator shall provide universal service itself or, in the case that it does not engage in the sale of electricity, it shall designate a seller who holds an activity licence, to provide that service.

 (3) In the case that the network operator does not itself provide universal service, such operator shall publish on its website the name and contact information of the seller who provides that service in the service area of the operator and shall provide the same information to any person who requests it.

 (4) It is not obligatory to provide universal service to a consumer whose network contract, entered into pursuant to section 83 of this Act, has been cancelled on a ground provided in this Act.

 (5) In the case that a small consumer has not entered, in accordance with section 83 of this Act, into an electricity contract with any seller of electricity, that consumer shall be provided universal service as of the day following the day of termination of his or her electricity contract.
[RT I, 28.06.2012, 1 - entry into force 01.01.2013]

§ 76².  Standard terms and conditions of universal service

 (1) A network operator or a seller designated by the network operator shall obtain the approval of the Competition Authority for standard terms and conditions of universal service. The Competition Authority shall not approve the standard terms and conditions if a standard term contravenes this Act or if the content or manner of expression or of presentation of the term is unusual or difficult to understand within the meaning of subsection 3 of section 37 of the Law of Obligations Act, or if the term is unfairly prejudicial to the other party within the meaning of section 42 of the Law of Obligations Act.

 (2) A network operator and the seller designated by the network operator shall publish on their website the standard terms and conditions referred to in subsection 1 of this section and shall provide information concerning these to any person who requests it.
[RT I, 28.06.2012, 1 - entry into force 01.01.2013]

§ 76³.  Price of electricity sold by way of universal service

 (1) The provider of universal service shall calculate the price, for a given calendar month, of electricity sold by way of universal service on the basis of the weighted average of the hourly amounts of electricity sold by way of universal service in that calendar month correlated with the hourly prices of electricity published at the power exchange. Justified expenses related to the provision of universal service and a reasonable operating margin shall be added to the price calculated in this manner.

 (2) The provider of universal service shall calculate the charge for the universal service on the basis of metered amounts of electricity consumption. In the case that the network operator does not possess metered data concerning a small consumer’s consumption of electricity during the previous calendar month, the operator shall make an estimate of the amount of electricity required for the provision of universal service on the basis of a consumption schedule. In the case that accurate information is subsequently received, and if the estimated amount differs from the metered amount, the network operator shall set off the account on the invoice for the next month.

 (3) The provider of the universal service shall publish on its website, by the ninth day of the following month, the price of electricity sold by way of universal service together with the data and method of calculation used to arrive at the price.

 (4) The procedure for setting off amounts of electricity consumed by way of universal service, for the exchange of information in relation to universal service and for providing information to small consumers shall be established in the grid code.
[RT I, 28.06.2012, 1 - entry into force 01.01.2013]

§ 77.  Disclosure of information on seller

  If a network operator does not perform its obligation to sell itself, the network operator shall publish the name and contact details of the seller specified in section 76(2) of this Act in at least one daily newspaper of national circulation and on its website and shall provide this information to any person who requests it.

§ 78.  Performance of obligation to sell

 (1) A market participant shall submit the request to purchase electricity within the framework of the obligation to sell of a network operator as specified in section 76(1) of this Act and in order to enter into a corresponding contract, to the seller whose name has been disclosed pursuant to the procedure provided in section 77 of this Act or to the network operator.

 (2) The request specified in subsection 1 of this section shall be submitted at least seven days before the time at which the sale of electricity requested by the market participant commences, taking into account the fact that the sale of electricity within the framework of the obligation to sell of the network operator as specified in section 76(1) of this Act may only commence on the first day of a calendar month. The sale of electricity within the framework of the obligation to sell specified in section 76(1) of this Act shall last for at least twelve consecutive calendar months and during that time the market participant is prohibited from purchasing electricity from any other seller.

 (3) The provisions of subsections 1 and 2 of this section shall not apply to the purchase of electricity within the framework of the obligation to sell specified in section 76(1) of this Act by a market participant in respect of whom the obligation specified in section 75(1) of this Act applies.

§ 79.  Unbundling of obligation to sell

  A seller whose name has been disclosed pursuant to section 77 of this Act shall, on seeking approval of the ceiling rate of the weighted average price of the electricity to be sold within the framework of the obligation to sell, submit information to the Competition Authority separately concerning the allocation of revenue and expenses for the sale of any electricity within the framework of the obligation to sell and concerning any other sale of electricity.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

§ 80.  Standard terms and conditions applicable to obligation to sell

 (1) A network operator or a seller whose name has been disclosed pursuant to section 77 of this Act shall seek approval from the Competition Authority for standard terms and conditions applicable to the sale of electricity within the framework of the obligation to sell. The Competition Authority shall not grant its approval to the standard terms and conditions if these do not reflect the balance of rights and obligations of the network operator or the seller whose name has been disclosed pursuant to section 77 of this Act and a purchaser of electricity, which served as the basis for approval of the ceiling rate of the weighted average price of electricity sold in the framework of the obligation to sell, or if a standard term or condition is unfairly prejudicial the other party within the meaning of the Law of Obligations Act.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (1¹) A network operator or a seller whose name has been disclosed pursuant to section 77 of this Act may agree, with a commercial consumer or another network operator, conditions of sale of the electricity sold within the framework of the obligation to sell that are different from the standard terms and conditions specified in subsection 1 of this section.
[RT I 2007, 23, 120 - entry into force 01.05.2007]

 (2) A network operator and a seller whose name has been disclosed pursuant to section 77 of this Act shall publish the standard terms and conditions specified in subsection 1 of this section on its website and shall provide information thereon to any person who requests it.

§ 81.  Price of electricity sold within framework of obligation to sell

 (1) A network operator or a seller whose name has been disclosed pursuant to section 77 of this Act shall seek approval from the Competition Authority for a ceiling rate of the weighted average price of the electricity sold within the framework of the obligation to sell. When approving the ceiling rate, the Competition Authority shall, amongst other things, take into account the provisions of subsection 2 of this section and the relevant standard terms and conditions of the network operator or seller.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (2) The price limits specified in subsection 1 of this section shall be such as to cover the estimated average purchase price of electricity purchased for performing the obligation to sell and the expenses incurred in the course of performing the obligations established for the sale of electricity, and any other obligations established, in relation to the obligation to sell, by legislation or in the conditions of the activity licence, and to ensure a justified return on capital.

 (3) The Competition Authority shall prepare and publish uniform methods for the calculation of justified ceiling rate of the weighted average price of electricity sold within the framework of the obligation to sell and shall rely on such methods when approving the ceiling rates. The Competition Authority shall elaborate the methods taking into account the provisions of subsection 2 of this section and other relevant- provisions.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (4) The weighted average price of electricity sold within the framework of the obligation to sell by a network operator or a seller whose name has been disclosed pursuant to section 77 of this Act shall not exceed the corresponding ceiling rate of the weighted average price approved by the Competition Authority, except in the case provided in subsection 5 of this section.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (5) When the electricity market is affected by rapid changes which result in a significant increase in the purchase price specified in subsection 2 of this section, which was the basis for approval of the ceiling rate of the weighted average price, a network operator or a seller whose name has been disclosed pursuant to section 77 of this Act may perform the obligation to sell by selling electricity at prices whose weighted average exceeds the ceiling rate approved by the Competition Authority. In such a case, the network operator or the seller whose name has been disclosed pursuant to section 77 of this Act shall promptly submit to the Competition Authority a request to approve a new ceiling rate.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (6) The Competition Authority shall decide the approval of a new ceiling rate of the weighted average price on the basis of the request specified in subsection 5 of this section, taking into account the provisions of subsection 2 of this section. If the Competition Authority does not approve the new ceiling rate of the weighted average price or approves a ceiling rate that is lower than the weighted average of the prices of electricity set pursuant to subsection 5 of this section, the Competition Authority shall issue an enforcement order addressed to the network operator or the seller whose name has been disclosed pursuant to section 77 of this Act, instructing the network operator or the seller to provide compensation for the price difference to the market participants who purchased electricity within the framework of the obligation to sell, and shall determine the procedure for the payment of compensation.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (7) The price charged for the electricity sold, within the framework of the obligation to sell, by a network operator or a seller whose name has been disclosed pursuant to section 77 of this Act shall become effective on the date determined by the network operator or the seller after at least ninety days have passed since the publication of the price in at least one daily newspaper of national circulation. The network operator and the seller shall publish the price of the electricity to be sold within the framework of the obligation to sell on its website and shall provide information on the price to all market participants who request such information.
[RT I 2007, 23, 120 - entry into force 01.05.2007]

 (8) [Repealed – RT I 2008, 51, 282 – entry into force 19.12.2008]

§ 81¹.  Submission of information to Statistics Estonia

  An electricity undertaking shall submit information concerning the setting of the price of electricity or of network services to Statistics Estonia pursuant to the procedure established in the Official Statistics Act.

§ 81².  Preservation of data

  A seller shall preserve for at least five years from the date of transaction, and submit to the Competition Authority and the European Commission if this is needed, the following data concerning all electricity transactions with another seller and with the transmission network operator, as well as concerning all transactions based on derivatives which are related to electricity and whose underlying asset is electricity:
 1) the date of the transaction and the terms and conditions of supply and of payment;
 2) the amount of the transaction;
 3) the date and time that the transaction was performed, by trading period;
 4) the price of the transaction;
 5) the particulars of the buyer;
 6) details concerning supply agreements.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

§ 82.  Import of electricity

 (1) Electricity may be imported by the system operator or by a power exchange trader. A power exchange trader may only import electricity for sale at the power exchange.

 (2) A power exchange trader who intends to import electricity may request an assessment from the system operator regarding whether the intended import of electricity is permissible considering the technical parameters of the system.

 (3) An importer of electricity who is not a balance provider shall enter into an open supply contract with the balance provider in order to maintain its balance.

 (4) The system operator shall be entitled to restrict or interrupt the import of electricity if this is required by the technical limitations of the system or the need to ensure security of supply.

 (5) The system operator may refuse to provide network services for the import of electricity if the importer of electricity fails to comply with the requirements established in the legislation concerning the import of electricity.

 (6) Every three months, the system operator shall communicate to the European Commission information concerning the amounts of electricity actually fed into the system from third countries.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

Chapter 8 CONTRACTS 

§ 83.  Application of provisions

 (1) The provisions of this Chapter apply to contracts which are made with a network operator for connection to its network and for amending the consumption or generation conditions (hereinafter, ‘connection contracts’), to contracts which are made for the provision of any other network services (hereinafter, ‘network contracts’) and to contracts entered into for the sale of electricity (hereinafter, ‘electricity contracts’).

 (2) Derogation from the provisions of this Chapter is permitted by agreement of the parties. Any agreement to make a derogation which is detrimental to a consumer who is a natural person is void.

§ 84.  Form of contract

 (1) Electricity contracts may be made by oral agreement. If a party to an electricity contract so requests, the contract shall be made in writing, in a form which allows reproduction in writing or in electronic form.

 (2) Connection contracts and network contracts shall be made in writing, in a form which allows reproduction in writing or in electronic form.

 (3) A network operator may enter into separate network contracts with consumers regarding different network services.

 (4) A consumer who is a natural person and who purchases electricity within the framework of the obligation to sell specified in section 76(1) of this Act from a seller designated by the network operator is entitled to demand from the seller that the electricity contract also include the provisions of a network contract for the provision of all network services necessary for transmission of the electricity to be sold. In such a case, the contract shall be made in the form specified in subsection 2 of this section.

§ 85.  Submission of information

 (1) Prior to entering into a connection contract, network contract or electricity contract, the party to the contract who is a consumer and a natural person shall be provided with information concerning the material terms and conditions of the contract and any possible alternatives in terms of its content.

 (2) It is not necessary to provide the information specified in subsection 1 of this section if the contract is made by oral agreement or if the consumer does not wish to be given such information.

 (3) If, by agreement with a network operator, a seller also arranges settlement of accounts for the network services provided by the network operator under a network contract, the seller shall present a separate invoice for the network services provided or shall distinguish the relevant date related to network services in the invoice issued on the basis of the electricity contract.

§ 86.  Written confirmation

 (1) If an electricity contract is not made in writing, in a form allowing reproduction in writing or in electronic form, the distribution network operator or seller shall, after entering into the contract, send a written document to the consumer confirming the content of the contract (hereinafter, ‘written confirmation’). Written confirmation shall be sent to a consumer who is a natural person within two weeks from the making of the contract.

 (2) A written confirmation shall state the period of time during which the consumer may present objections. The period of time shall not be less than three weeks.

 (3) During the period from the making of a contract to the expiry of the period of time specified in subsection 2 of this section or until objections are submitted within that period, the parties shall observe the terms and conditions set out in the written confirmation, unless agreed otherwise.

 (4) The Law of Obligations Act applies to written confirmation insofar as it is not regulated by the provisions of this section.

§ 87.  Terms and conditions of contract

 (1) A connection contract, network contract or electricity contract executed in writing, in a form allowing reproduction in writing or in electronic form shall include the following information:
 1) the name, registration number in the Commercial Register, address and other contact details of the network operator in the case of a network or connection contract or of the network operator or the seller in the case of an electricity contract;
 2) a description of the services provided on the basis of the network or connection contract or the principal parameters of the electricity sold on the basis of the electricity contract;
 3) the principal parameters of the quality of the services provided on the basis of the network or connection contract or a reference to a document which is accessible and which sets out such parameters;
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 4) the time of initial connection to the network pursuant to a connection contract entered into for connection to the network or for amendment of the consumption or generation conditions;
 5) a description of the maintenance services provided;
 6) the manner of obtaining relevant information concerning the charges payable on the basis of the contract;
 7) the conditions for amendment of the contract and of the conditions for the provision of services on the basis of the contract, and the conditions for cancellation of the contract;
 8) if the services provided on the basis of a network or connection contract do not conform to the terms and conditions of the respective contract, information concerning the way in which the consumer may obtain a refund or compensation in the manner of a payment or any other manner;
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 9) information concerning the procedure for dealing with complaints;
[RT I, 28.06.2012, 1 – entry into force 08.07.2012] 8)
 10) in the case of a network or electricity contract, the term of the contract.

 (2) If an electricity contract is not made in writing, in a form allowing reproduction in writing or in electronic form, the information specified in subsection 1 of this section shall be provided in the written confirmation to be issued by the distribution network operator or the seller subject to section 86 of this Act.

§ 88.  Validity and term of contract

 (1) A network contract or an electricity contract may be made for an unspecified term or for a specified term. A connection contract is made for establishing a network connection as defined in the contract or for amendment of the consumption or generation conditions of an existing network connection, and shall terminate upon being performed.

 (2) An electricity contract which is made for an unspecified term shall terminate upon termination of the network contract entered into in respect of the network connection through which electricity was sold on the basis of the electricity contract.

 (3) An electricity contract may be entered into by a market participant who holds a valid network contract in respect of the metering point of his place of consumption.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

§ 89.  Amendment of contract

 (1) A network operator may unilaterally amend the standard terms and conditions of a network contract or an electricity contract and a seller may unilaterally amend the standard terms and conditions of an electricity contract if such amendments are objectively justified and necessary in order to take into account a change in the circumstances and provided the amendments have been approved by the Competition Authority. The Competition Authority shall not grant its approval to amendments to standard terms and conditions if these do not reflect the balance of rights and obligations of the parties which served as the basis for approval of the network charges or the ceiling rate of the weighted average price of electricity, or if a standard term or condition is unfairly prejudicial to the other party within the meaning of the Law of Obligations Act.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (2) A network operator or seller may unilaterally amend the network charge or the price of electricity or any other charge set out in the network contract or electricity contract if such an amendment has been approved by the Competition Authority or if the amendment consists in modifying the corresponding price or charge on the basis of a formula approved by the Competition Authority pursuant to this Act.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (3) The amendment of the standard terms and conditions specified in subsection 1 of this section shall apply to all contracts which are valid at the time of amendment and which are entered into subsequently.

 (4) A network operator or a seller shall notify consumers prior to amending the terms and conditions of a contract. The notice shall set out the envisaged amendments, the basis for the envisaged amendments and the date on which they are intended to take effect, as well as information concerning the fact that the consumer is entitled to cancel the contract if he does not agree to the amendments.

 (5) The notice specified in subsection 4 of this section shall be provided to the consumer together with the invoice presented to him or her at least thirty days before the envisaged amendments are to take effect.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (6) The notification obligation provided in subsection 4 of this section may be performed by publishing a corresponding notice in at least one daily newspaper of national circulation.

§ 90.  Interruption of network connection for reasons due to the consumer

 (1) A network operator may interrupt the connection of a consumer to the network if the consumer has failed to pay the amount payable on the basis of a contract entered into with the network operator or on the basis of a contract entered into with a seller designated by the network operator in order to perform the network operator’s obligation to sell referred to in subsection 1 of section 76 of this Act, or has otherwise materially breached an obligation arising from these contracts.

 (2) Before interruption of a network connection on the grounds specified in subsection 1 of this section, a notice concerning the intended interruption shall be sent to the consumer at the address of the place of consumption or to the address stated in the contract. The notice shall set out the grounds for interrupting the network connection and the intended time of the interruption.

 (3) If the consumer is a natural person, the notice specified in subsection 2 of this section shall be sent by registered post.

 (4) The network connection of a consumer may be interrupted after at least fifteen days have passed since the notice specified in subsection 2 of this section was sent provided that, during that period, the consumer has failed to eliminate the circumstances which serve as grounds for the interruption, or fails to notify the network operator thereof.

 (5) If a network connection is interrupted on the ground that a consumer who is a natural person has, due to a temporary insolvency of the consumer which was brought about as a result of his or her serious illness or unemployment, failed to pay an amount payable according to the contract entered into with a distribution network operator or the contract entered into with the seller designated by the network operator in order to perform the network operator’s obligation to sell referred to in subsection 1 of section 76 of this Act, the consumer may notify the network operator thereof in writing. Proof of those circumstances shall be annexed to the notice.

 (6) On receiving the notice and the proof specified in subsection 5 of this section, a network operator may interrupt the network connection of a consumer who is a natural person after at least 30 days have passed since the notice specified in subsection 2 of this section was sent and provided that, during that period, the consumer has failed to eliminate the circumstances which serve as grounds for interruption of the network connection or fails to notify the network operator thereof.

 (7) If a network connection is interrupted on the ground that the amount payable according to the contract entered into with a distribution network operator or the contract entered into with the seller designated by the distribution network operator in order to perform the network operator’s obligation to sell referred to in subsection 1 of section 76 of this Act has not been paid, the network connection may be interrupted during the period from 1 October to 30 April in a building or part thereof which constitutes a residence and which is used as a permanent residence and heated exclusively or primarily by electricity, only when at least 90 days have passed since the notice specified in subsection 2 of this section has been sent and provided that, during that period, the consumer fails to eliminate the circumstances which serve as grounds for interruption of the network connection or fails to notify the network operator thereof.

 (8) Notwithstanding the provisions of subsection 7 of this section, a network operator may limit the capacity of the network connection of a consumer by installing and using a specific protective device if the consumer has failed to pay an amount payable according to the contract entered into with the network operator or the contract entered into with the seller designated by the network operator in order to perform the network operator’s obligation to sell referred to in subsection 1 of section 76 of this Act, or has otherwise materially breached an obligation arising from these contracts. The consumer shall be notified of such a limitation pursuant to the procedure provided in subsections 2 and 3 of this section at least fifteen days in advance.

 (9) Notwithstanding the provisions of subsections 1–7 of this section, a network operator may promptly interrupt the network connection of a consumer if the consumer:
 1) increases without permission the capacity limited pursuant to the procedure set out in subsection 8 of this section;
 2) uses electricity or network services illegally within the meaning of section 68 of this Act;
 3) uses electrical installations which do not meet established requirements, which are dangerous or which interfere with the operation of the network as a whole or which prejudice the security of supply.

 (10) The interruption of a network connection on the grounds provided in this section shall not release the consumer from the obligation to pay the charges set out in the connection contract, electricity contract and network contract.

 (11) A network operator shall be entitled to demand reimbursement from the consumer for justified expenses incurred in implementing the measures provided in this section.

 (12) The provisions of subsections 1, 2 and 8 - 11 of this section shall also apply to interruption of a network connection and limitation of the capacity of a producer, line possessor or any other network operator.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

 (13) The provisions of this section shall also apply to the cases in which electricity is sold and transmitted in accordance with point 1 or 2 of subsection 6 of section 15 of this Act.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

§ 91.  Cancellation of network contract

 (1) A network operator may cancel a network contract and disconnect the place of consumption from the network if:
 1) the network connection has been interrupted by the network operator due to a breach of the network contract and the interruption has lasted at least 180 consecutive days and the other party to the contract has failed, during that period, to eliminate the circumstances which served as grounds for the interruption and has not commenced consumption of electricity;
 2) the other party to the contract has materially breached the obligations arising from the network contract and has failed to remedy the breach within a reasonable period of time granted by the network operator, in view of which the network operator cannot reasonably be expected to continue performing the contract.

 (2) A network operator is entitled to cancel a network contract due to failure to pay an amount payable according to the contract entered into with the network operator or seller exclusively on the grounds provided in point 1 of subsection 1 of this section.

 (3) A network operator shall give notice of the cancellation of a network contract at least thirty days in advance. The notice shall set out the grounds for cancellation of the contract and the date of termination of the contract.

 (4) If the consumer is a natural person, the notice specified in subsection 3 of this section shall be sent by registered post.

 (4¹) A network operator may cancel the network contract before the agreed due date or before the notice period specified in subsection 3 of this section has expired, if the place of consumption stipulated in the contract has been the subject of a transfer of property and there is no legal basis for the consumer to use that place.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (5) A person who has entered into a network contract with a network operator may not cancel the contract if a valid electricity contract entered into with another person exists in respect of the network connection that is the subject matter of the network contract and if the other person has not entered into a network contract regarding the network connection.

 (6) A consumer may cancel a network contract made for a specified term or for an unspecified term provided he gives at least 30 days’ notice of the intention to cancel. This provision shall not apply in the case specified in subsection 5 of this section.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (7) Any agreement which derogates from the provisions of this section is void.

§ 92.  Cancellation of electricity contract

 (1) A seller or a network operator shall be entitled to cancel an electricity contract if:
 1) the consumer has materially breached obligations arising from the contract and has not remedied the breach within a reasonable period of time granted by the seller or network operator;
 2) the network connection through which electricity was sold on the basis of the electricity contract has been interrupted on the grounds specified in section 90(1) of this Act and the interruption has lasted at least 60 days;
 3) the consumer has used electricity or network services illegally or has intentionally or due to gross negligence damaged the property of the network operator or the seals or verification marks placed on the metering devices by the network operator or the seller;
[RT I 2007, 23, 120 - entry into force 01.05.2007]
 4) the electricity is sold on the basis of the obligation to sell stipulated in section 76 of this Act and the market participant fails to satisfy all conditions listed in subsection 1 of section 76.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

 (2) An electricity contract may be cancelled due to failure to pay an amount payable according to the contract entered into with the seller or the network operator exclusively on the grounds provided for in point 2 of subsection 1 of this section.

 (3) A consumer shall be notified of the cancellation of an electricity contract at least thirty days in advance. The notice shall state the grounds for cancellation of the contract and the date of termination of the contract.

 (4) If the consumer is a natural person, the notice specified in subsection 3 of this section shall be sent by registered post.

 (4¹) A seller may cancel an electricity contract before the agreed due date, or before the notice period specified in subsection 3 of this section has expired, if the place of consumption stipulated in the contract has been the subject of a transfer of property and there is no legal basis for the consumer to use that place.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (5) A consumer who is a natural person may, after two years have elapsed, cancel an electricity contract entered into outside the obligation to sell of the network operator provided in section 76(1) of this Act for a term exceeding two years, under the same conditions that apply to cancelling an electricity contract entered into for an unspecified term.

 (6) A consumer who is a natural person may cancel an electricity contract entered into for a specified or unspecified term within the framework of the obligation to sell of the network operator set out in section 76(1) of this Act by giving notice thereof at least thirty days in advance and by complying with the provisions of section 78(2) of this Act.

Chapter 8¹ BUILDING A WIND POWER PLANT ON A PUBLIC WATER BODY 
[RT I 2010, 8, 37 - entry into force 27.02.2010]

§ 92¹.  Superficies licence

 (1) In order to build a wind power plant on a public water body, it shall be necessary to obtain from the Government of the Republic a superficies licence defined in section 22⁵(1) of the Water Act.

 (2) In addition to information and documents required by the Water Act, a superficies licence application must include information concerning the potential capacity of the wind power plant and must be accompanied by an endorsement from the network operator regarding the technical conditions for connection to the transmission network.
[RT I 2010, 8, 37 - entry into force 27.02.2010]

§ 92².  Persons who may be authorised to build a wind power plant on a public water body

  A superficies licence to build a wind power plant on a public water body may only be granted to an electricity undertaking within the meaning of this Act or to an undertaking which belongs to the same group with an electricity undertaking within the meaning of section 2(3) of the Competition Act. The superficies licence may only be assigned to another electricity undertaking, another undertaking belonging to the same group with an electricity undertaking or to the Republic of Estonia.
[RT I 2010, 8, 37 - entry into force 27.02.2010]

§ 92³.  Amount of superficies charge for a wind power plant built on a public water body

 (1) For a wind power plant that has been built on a public water body, the electricity undertaking shall pay an annual superficies charge to the Estonian government, which shall amount to 7 percent of the price determined on the basis of average value of production land in Estonia, calculated on the basis of the surface area of the land built upon. The average value of land shall be established on the basis of the results of a regular valuation of the land conducted pursuant to the Land Valuation Act. The surface area of built-upon land that supports the wind power plant shall also include distances of up to 1000 metres between individual wind turbines that comprise the power plant, as well as the surface area of built-upon land that supports the civil engineering works required for servicing the wind power plant. The distance between wind turbines shall be calculated on the basis of the width dimension of the turbines.

 (2) The superficies charge during the period from the time the building permit is issued to the time the wind power plant is to begin its operation according to its intended purpose shall amount to 10 per cent of the rate established in subsection 1 of this section. The superficies charge shall be paid in full from the moment the wind power plant begins its operation according to its intended purpose. The time that the wind power plant begins its operation according to its intended purpose shall be the time the wind power plant feeds electricity into the network for the first time.

 (3) The provisions of section 22¹⁸ of the Water Act shall apply to the payment of superficies charge.
[RT I 2010, 8, 37 - entry into force 27.02.2010]

Chapter 9 STATE SUPERVISION 

§ 93.  State supervision body

 (1) State supervision over compliance with this Act and the legislation enacted on its basis, including the operation of the electricity market and the activities of market participants (hereinafter, ‘supervision’), shall be exercised by the Competition Authority pursuant to the procedure provided in this Act and other legislation.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (2) If necessary, the Competition Authority shall involve independent experts and cooperate with other Estonian and foreign supervisory authorities in order to exercise supervision.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (3) In exercising the functions entrusted to it by virtue of this Act, the Competition Authority shall be independent.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (4) Supervision over the provision of network services, of offers or sales of electricity or of making electricity available in the market in another manner shall be exercised by the Consumer Protection Board to the extent of the authority granted to it by the Consumer Protection Act.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (5) In the case of a dispute which has arisen in relation to a connection contract, network contract or electricity contract, and which the parties have been unable to settle, the consumer is entitled to file a complaint with the Consumer Disputes Commission or another person or body or court which deals with similar complaints.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

§ 94.  Functions of the Competition Authority
[RT I 2007, 66, 408 - entry into force 01.01.2008]

  The Competition Authority shall perform the following functions:
[RT I 2007, 66, 408 - entry into force 01.01.2008]
 1) issue and revoke activity licences, extend the term of activity licences, establish and amend the conditions thereof and monitor compliance with the conditions of activity licences;
 1¹) monitor the issue, transfers and validity of guarantees of origin specified in section 58¹ of this Act;
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 2) pursuant to sections 75(5) and 75(6) of this Act, approve the ceiling rate of the weighted average price of electricity sold by a producer specified in section 75(3) of this Act who possesses generating installations which have a total net capacity of at least 500 MW and which are located in Estonia;
[RT I 2010, 8, 40 - entry into force 27.02.2010]
 2¹) scrutinise the justifications for the price of electricity sold in the framework of open supply specified in subsection 4² of section 44 of this Act;
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 2²) scrutinise the justifications for expenditure incurred by the transmission network operator in order to administer the support provided in subsection 4 of section 59² of this Act;
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 2³) monitor the information specified in section 75¹ of this Act which is provided by a seller to the consumer;
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 3) pursuant to section 81 of this Act, approve the ceiling value of the weighted average price of electricity which is sold within the framework of the obligation to sell of the network operator as specified in section 76(1) of this Act and the standard terms and conditions of the sale of electricity;
 4) pursuant to section 75(7) of this Act approve the ceiling price for oil shale sold by an undertaking engaged in the mining of oil shale in Estonia to a producer specified in section 75(5) of this Act;
 4¹) pursuant to section 75(5¹) of this Act, scrutinise the use of electricity purchased from a producer referred to in section 75(3)(1) of this Act,;
[RT I 2010, 8, 40 - entry into force 27.02.2010]
 5) pursuant to the provisions of section 81 of this Act, monitor the prices charged by a seller, who is an undertaking in a dominant position within the meaning of the Competition Act, for electricity and for services which are directly related to the sale of electricity and in respect of which the seller is in the dominant position;
 6) issue enforcement orders to ensure performance of the network development obligation;
 6¹) approve principles to govern the hourly regulation of the system specified in point 31 of subsection 1 of section 39 of this Act, and approve the distribution plan of cross-border capacity and the principles for congestion management pursuant to Regulation No. 714/2009 of the European Parliament and the Council on conditions of access to cross-border exchanges in electricity and repealing Regulation (EC) No 1228/2003;
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 7) pursuant to the provisions of section 53 of this Act, monitor the prices of balancing electricity set by the system operator and approve standard terms and conditions of balance agreements;
 8) pursuant to section 40(7) and sections 44, 59 and 71–73, approve methods for the calculation of network charges specified in sections 71(1)(1) and 71(1)(2) of this Act, approve the network charges specified in points 3 - 5 of section 71(1), except for transmission charges for the transit of electricity, and approve standard terms and conditions for the provision of network services;
 9) pursuant to the provisions of section 75(6) of this Act, monitor the prices charged by a producer, who is an undertaking in a dominant position within the meaning of the Competition Act, for electricity and for services which are directly related to the sale of electricity and in respect of which the producer is in the dominant position;
 10) pursuant to sections 71 - 73 of this Act, monitor the transmission charges applied by network operators for the transit of electricity, as well as connection charges and charges for the amendment of conditions;
 10¹) verify compliance with the requirements set out in Regulation (EC) No 714/2009 of the European Parliament and of the Council
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 10²) monitor and supervise the conduct of the competition specified in section 4(4¹) of this Act;
([RT I 2007, 23, 120 – entry into force 01.05.2007]
 10³) monitor investments in production capacity and, having regard to considerations of security of supply, direct the system operator, if this is needed, to hold the competition specified in subsection 4¹ of section 4 of this Act;
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 10⁴) issue an opinion in its annual report regarding the report drawn up by the system operator in accordance with subsection 7 of section 39 of this Act, taking into account whether the report of the system operator is in conformity with the Community-wide network development plan referred to in paragraph 3 of Article 8 of Regulation No 714/2009 of the European Parliament and of the Council, and issue recommendations concerning the amendment of the system operator’s investment plan, if this is necessary;
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 10⁵) monitor technical cooperation between the transmission network operators of the member states of the European Union and of third countries;
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 10⁶) engage in cooperation with counterpart authorities of other member states in order to harmonise the data exchange platforms of the electricity market of the region;
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 10⁷) monitor the situation concerning market opening and competition, including the power exchange and the prices set for household customers;
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 10⁸) monitor the time that transmission network operators and distribution network operators take to build connections and to perform repairs;
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 10⁹) publish, at least once a year, recommendations concerning the setting of the prices of electricity sold to household customers;
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 11) resolve disputes between market participants which are related to infringements of obligations provided in this Act and the legislation enacted on its basis;
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 12) decide the initiation of expropriation proceedings;
 13) verify that market participants comply with the requirements set out in this Act and the legislation enacted on its basis, and perform the relevant obligations;
 14) issue, where necessary, mandatory enforcement orders to market participants in the cases provided for in this Act;
 15) publish, on its website, the ceiling price for electricity and the network charges of electricity undertakings as approved by the Competition Authority on the basis of this Act;
 16) verify that electricity undertakings have paid the relevant state fees;
 16¹) in order to perform its functions, and without prejudice to its independence and special authority, engage in cooperation with the transmission network operator and, should this be needed, with other relevant authorities. An approval issued by the Competition Authority pursuant to this Act may not in any way limit the subsequent exercise of its powers;
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 17) fulfil other functions entrusted to it by virtue of this Act, by Regulation 714/2009 of the European Parliament and of the Council and other legislation.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (1¹) The Competition Authority shall notify the European Commission of the decision to issue an activity licence to the transmission network operator, and shall publish that decision in the Official Journal of the European Union.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (2) The Competition Authority shall make a decision concerning an approval request submitted to it on the basis of this Act within 90 days from submission of the request. When processing a particularly complex request or a request that involves a considerable amount of work, the Competition Authority may extend this term to 180 days. The person who submitted the approval request shall be notified of the extension of the term before expiry of the initial term.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (3) The passage of the term specified in subsection 2 of this section shall be suspended until such time as the information which is necessary for a decision to be made concerning the approval request and which the Competition Authority has requested is submitted to the Competition Authority.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (3¹) The Competition Authority shall cooperate with the Agency for the Co-operation of Energy Regulators of the European Union (hereinafter, ‘the Co-operation Agency’) with the regulatory authorities of other member states.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (4) The Competition Authority shall submit to the European Commission a report on market dominance among electricity undertakings and on predatory and other anti-competitive behaviour. The report shall, in addition, review the changing ownership patterns, the measures taken to enhance competition, and the potential effect of measures adopted in order to comply with the obligation of provision of universal service on domestic and international competition
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (5) The Competition Authority shall prepare and publish on its website by 31 July each year an overview concerning the previous calendar year which shall reflect:
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]
 1) the rules of allocation of capacity of intersystem connections;
 2) the rules for resolving congestions in the system;
 3) the time spent on construction and repair of cross-border interconnectors;
 4) the information published by network operators concerning cross-border interconnectors and distribution of the capacity of the network, taking into account the need to maintain business secrets;
 5) the measures for unbundling of activities specified in section 16 of this Act;
 6) the connection conditions established for new producers;
 7) performance of obligations by the system operator and network operators;
 8) the competition situation in the electricity market.
[RT I 2007, 23, 120 - entry into force 01.05.2007]

 (6) The Competition Authority shall publish on its website information concerning the rights of the consumer, the relevant legislation and the possible ways of resolving disputes.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

§ 95.  Enforcement orders

 (1) The Competition Authority shall issue mandatory enforcement orders to market participants and other persons in the event of a violation of this Act and the legislation enacted on its basis, in the event of a breach of the conditions of an activity licence and in other cases specified in this Act directing the market participant or other person to put an end to the violation or breach, to eliminate and remedy its consequences or to perform other acts.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (2) An enforcement order shall contain the following information:
 1) the name and position of the official who drew up the order;
 2) the date of drawing up the order;
 3) the name and address of the recipient of the enforcement order;
 4) the factual and legal basis for the issue of the enforcement order;
 5) the content of the enforcement order;
 6) the due date for compliance with the enforcement order;

 (3) An enforcement order shall be communicated to its recipient without delay. The Competition Authority shall also communicate the enforcement order to other persons affected by it. Information concerning an enforcement order shall be entered in the register promptly, but not later than within five working days.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (4) In the event of failure to perform an obligation imposed by an enforcement order, a penalty payment may be imposed pursuant to the procedure provided in the Substitutive Enforcement and Penalty Payments Act. The upper limit for a penalty payment is 1,300 euros.
[RT I 2010, 22, 108 - entry into force 01.01.2011]

 (5) In the event of substitutive enforcement, an official of the Competition Authority or a third party who is carrying out substitutive enforcement at the request of an official shall have the right to access the premises and construction works of the recipient of the enforcement order, to use the property of the recipient in performing acts and to exert an impact on such property by such acts and, if necessary, to use the support of the police to exercise his or her rights.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

§ 96.  Obligation to provide information

 (1) Market participants and agencies of the governmental and of local authorities shall submit the Competition Authority any information required by it for the performance of its responsibilities if it so requests. Such information shall be submitted within five days from the making of the request.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (2) A market participant shall notify the Competition Authority promptly of any circumstances which materially prevent or may materially prevent the market participant from performing the obligations arising from this Act, the legislation established on its basis or the activity licence.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (3) A market participant shall notify the Competition Authority if its activities do not comply with the requirements arising from this Act, the legislation established on its basis or the activity licence and shall state the measures it intends to implement in order to rectify the situation.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

§ 97.  Obligation to maintain confidentiality of information

 (1) The Competition Authority shall maintain the confidentiality of information communicated to it if the person communicating the information has indicated that the information contains business secrets.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (2) The Competition Authority shall classify the information specified in subsection 1 of this Act as information intended for internal use as defined in the Public Information Act.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (3) The communication of information in the case where such communication is prescribed by law or where the person who provided the information or the person to whom the information pertains has given consent to the communication of the information shall not be deemed to be a breach of the obligation specified in subsection 1 of this section.

 (4) The Competition Authority shall use any information at its disposal only for the performance of the functions arising from this Act.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

§ 98.  Right of access

 (1) A person who has been authorised by the Competition Authority to perform a supervision function specified in section 94(1) of this Act has the right to access the premises, enclosed spaces and civil engineering works of the market participant in order to examine any documents and verify circumstances if this is necessary for the exercise of supervision, and to make extracts, transcripts and copies of documents.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (2) A market participant or its representative shall ensure that the right specified in subsection 1 of this section may be exercised without any obstacles or restrictions, at the time and place determined by the Competition Authority and shall provide the person exercising supervision with every possible support.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

§ 99.  Resolution of complaints

 (1) A market participant may file a written complaint with the Competition Authority against the action or omission of another market participant which is in conflict with this Act or the legislation established on its basis.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (2) The Competition Authority shall review a complaint specified in subsection 1 of this section and make a decision thereon within thirty days from receipt of the complaint. In the case of a complaint in respect of a network operator, the Competition Authority shall make its decision within 60 days from receipt of the complaint.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

 (3) If the Competition Authority requests information necessary for resolving a complaint, the run of the term specified in subsection 2 of this section shall be suspended until receipt of such information, but not for longer than thirty days. In the case of a complaint in respect of a network operator, the Competition Authority may suspend the term for up to 60 days, provided the complainant agrees to this.
[RT I, 28.06.2012, 1 – entry into force 08.07.2012] (2)

§ 100.  Expropriation

 (1) In addition to the grounds set out in section 3(1) of the Immovables Expropriation Act, the Competition Authority may demand:
[RT I 2007, 66, 408 - entry into force 01.01.2008]
 1) that any assets used for an activity specified in an activity licence be expropriated, if the person operating on the basis of the licence fails to perform the obligation provided in section 37(2) of this Act;
 2) that any assets used for an activity specified in an activity licence be expropriated if the period of validity of the activity licence has expired or the activity licence has been revoked and there is no guarantee that the activities carried out on the basis of those assets will continue to be in compliance with this Act, which may possibly endanger the security of supply of the system;
 3) that a network and the limited real right which grants a person the use of the network be expropriated if the owner of the network fails to perform the obligation provided in section 64(1) of this Act or if the network operator who owns or uses the network does not hold an activity licence required under this Act.

 (2) The Competition Authority may demand expropriation on the grounds provided in subsection 1 of this section only if it has given advance notice of its intention to demand expropriation to the owner of the assets which are the subject matter of the envisaged expropriation and if the owner of the assets has failed to eliminate the circumstances which serve as grounds for the expropriation within a reasonable period of time set by the Competition Authority.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (3) The Competition Authority does not have the obligation set out in subsection 2 of this section if performance of the obligation may endanger security of supply.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (4) Expropriation shall be carried out pursuant to the procedure provided in the Immovables Expropriation Act.

§ 100¹.  Regulating cross-border exchanges in electricity

 (1) The Competition Authority shall co-operate and shall exchange information which is necessary for performing the functions provided in this Act with regulatory authorities of the member states of the European Union and with the Co-operation Agency in order to:
 1) facilitate optimum administration of the network;
 2) promote the establishment of a common power exchange;
 3) optimise the distribution of cross-border capacities;
 4) by mutual connection of networks, achieve such a level of capacity which allows to promote competition and improve the security of supply, at the same time avoiding unequal treatment of market participants;
 5) co-ordinate the elaboration of network codes;
 6) co-ordinate the elaboration of congestion management requirements.

 (2) The Competition Authority shall use the information to be exchanged with the same degree of confidentiality to which its was subjected by the authority that provided the information.

 (3) The Competition Authority may request the opinion of the Co-operation Agency concerning conformity to Directive 2009/72/EC of the European Parliament and of the Council and to Regulation (EC) No 714/2009 of the European Parliament and of the Council, of a decision taken by the regulatory authority of another member state of the European Union with regard to cross-border exchanges in electricity.

 (4) In the case that the decision taken in the regulatory authority of another member state regarding cross-border exchanges in electricity is incompatible with the requirements provided in Directive 2009/72/EC of the European Parliament and of the Council or Regulation (EC) No. 714/2009 of the European Parliament and of the Council, the Competition Authority shall be entitled to notify this to the European Commission within two months from the day the decision was made.

 (5) If the European Commission should require that a decision of the Competition Authority concerning cross-border exchanges in electricity be annulled for reasons of incompatibility with Directive 2009/72/EC of the European Parliament and of the Council or Regulation (EC) No. 714/2009 of the European Parliament and of the Council, the Competition Authority shall comply with the requirement within a period of two months and shall notify such compliance to the Commission.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

Chapter 10 LIABILITY 

§ 101.  Breach of obligation to provide network services

 (1) A breach by a network operator of the obligation to provide network services in its service area is punishable by a fine of up to 300 fine units.

 (2) The same act, when committed by a legal person, is punishable by a fine of up to 3,200 euros.
[RT I 2010, 22, 108 - entry into force 01.01.2011]

§ 101¹.  Violation of quality requirements for network services provided

 (1) Violation of the quality requirements for network services provided in the service area of a network operator by the network operator or failure to reduce network charges following a violation of those requirements, if reduction of the network charges is prescribed in this Act, is punishable by a fine of up to 300 fine units.

 (2) The same act, when committed by a legal person, is punishable by a fine of up to 3,200 euros.
[RT I 2010, 22, 108 - entry into force 01.01.2011]

§ 101².  Sale of electricity at unapproved ceiling prices or at prices exceeding the approved ceiling price

  The sale of electricity by a network operator or a seller designated by the network operator at unapproved ceiling prices or at prices exceeding the approved ceiling price, where approval is required, is punishable by a fine of up to 3,200 euros.
[RT I 2010, 22, 108 - entry into force 01.01.2011]

§ 101³.  Violation of rules of cross-border exchanges in electricity

  Failure by a legal person to comply with the conditions for cross-border exchanges in electricity provided in Regulation (EC) No 714/2009 of the European Parliament and of the Council is punishable by a fine of up to 32,000 euros.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

§ 102.  Illegal use of network services and electricity

 (1) Illegal use of network services or electricity by a market participant is punishable by a fine of up to 300 fine units.

 (2) The same act, when committed by a legal person, is punishable by a fine of up to 3,200 euros.
[RT I 2010, 22, 108 - entry into force 01.01.2011]

 (3) The court may apply confiscation of the direct means of the commission of the misdemeanour created by this section on the basis of section 83 of the Penal Code.
[RT I 2007, 23, 120 - entry into force 01.05.2007]

§ 103.  Failure to provide information

 (1) Failure by a market participant to provide mandatory information to the Competition Authority or the system operator is punishable by a fine of up to 100 fine units.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (2) The same act, when committed by a legal person, is punishable by a fine of up to 1,300 euros.
[RT I 2010, 22, 108 - entry into force 01.01.2011]

§ 104.  Prevention of exercise of the right to access

 (1) Preventing an official of the Competition Authority from exercising the right to access as provided for in this Act is punishable by a fine of up to 100 fine units.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (2) The same act, when committed by a legal person, is punishable by a fine of up to 1,300 euros.
[RT I 2010, 22, 108 - entry into force 01.01.2011]

§ 105.  Violation of obligation to maintain confidentiality of information

 (1) Violation of the obligation to maintain the confidentiality of information as prescribed by this Act is punishable by a fine of up to 300 fine units.

 (2) The same act, when committed by a legal person, is punishable by a fine of up to 3,200 euros.
[RT I 2010, 22, 108 - entry into force 01.01.2011]

§ 106.  Procedure

 (1) The provisions of the General Part of the Penal Code and the Code of Misdemeanour Procedure apply to the misdemeanours specified in sections 101 - 105 of this Act.

 (2) The Competition Authority is the extrajudicial body which conducts proceedings in matters of misdemeanours specified in sections 101 and 103 - 105 of this Act.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (3) Extrajudicial proceedings concerning the misdemeanours defined in section 102 of this Act shall be conducted by a police authority.
[RT I 2009, 62, 404 - entry into force 01.01.2010]

Chapter 11 IMPLEMENTING PROVISIONS 

§ 107.  Market licence and activity licence

 (1) A market licence issued on the basis of the Energy Act to a network operator for the sale of electricity and for the sale of the services of electricity transmission and distribution through the network, as well as the contract made with the government in relation to the market licence shall remain in effect for the aforementioned areas of activity until the expiry date indicated therein.

 (2) Market licences issued to a network operator on the basis of the Energy Act and contracts made with the government in relation to such licences shall become invalid in respect of electricity-related areas of activity not specified in subsection 1 of this section if a correctly completed application for the issue of an activity licence is not submitted within the term prescribed in subsection 5 of this section or if the Competition Authority makes a decision refusing to issue an activity licence on the basis of such application. All contracts entered into with the government and market licences which have not been issued to a network operator shall become invalid in respect of electricity-related areas of activity upon the entry into force of this Act.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (3) A market licence or a contract entered into with the government which remains in force pursuant to subsection 1 of this section shall be considered to be an activity licence issued for the activity specified in section 22(1)(3) or 22(1)(7) of this Act. A market licence issued for the provision of transmission services through a transmission network and a contract entered into with the government in relation to such a licence shall be deemed to be an activity licence issued for the activity specified in section 22(1)(4) of this Act.

 (4) If any condition of a market licence or a contract entered into with the government is contrary to this Act or the legislation established on its basis, the Competition Authority shall unilaterally amend the conditions of the market licence or the contract entered into with the government within ninety days as of the entry into force of this Act, in accordance with the provisions of this Act regarding the amendment of conditions of activity licences. Until the conditions are amended by the Competition Authority, the provisions of this Act and of the legislation established on its basis shall apply instead of the corresponding conditions of the market licence or clauses of a contract entered into with the government in the case that the conditions of the licence or clauses of the contract are contrary to this Act or the legislation established on its basis.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (5) If, at the time of entry into force of this Act, a market participant is engaged in an electricity-related area of activity not specified in subsection 1 of this section for which an activity licence is required pursuant to this Act, the market participant shall within 180 days from the entry into force of this Act submit a correctly completed application to the Competition Authority in order to obtain the corresponding activity licence.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (6) An activity licence for conveying electricity via a producer’s line shall be deemed an activity licence for conveying electricity via a direct line.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

§ 107¹.  Electricity contracts made pursuant to the obligation to sell

  An electricity contract entered into on the basis of a network operator’s obligation to sell referred to in subsection 1 of section 76 of the version of this Act which was in force through 31 December 2011 shall terminate on 31 December 2012.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

§ 108.  Eligibility period of support

 (1) The support specified in sections 59(1)(1) to 59(1)(4) of this Act may be paid for twelve years and the support specified in section 59(1)(5) for 20 years from the commencement of production. The support specified in section 59 for electricity generated from renewable energy sources by means of generating installations whose operation commenced before 1 January 2002 may be paid until 31 December 2012.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

 (1¹) If the amount of support specified in subsection 6 of section 59¹ of this Act is not used up by 1 January 2016 and if a generating installation which has a gross capacity of at least 300 MW has started operation pursuant to section 59(1)(5), the unused amount of support may also be used to pay for the availability of the installed net capacity of an oil shale-based generating installation if the generating installation started operation in the period from 1 January 2013 to 1 January 2018.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

 (1²) A producer who starts generation after 31 December 2010 with a generating installation that uses biomass as its energy source shall be eligible for the support specified in section 59(1)(1) of this Act only for electricity generated in an efficient co-generation process.
[RT I 2010, 8, 40 - entry into force 27.02.2010]

 (2) A producer who uses wind as the source of energy and whose generating installation commenced operation before 31 December 2007 may sell the electricity produced by such installation as open supply to a seller designated by the transmission network operator at a price which is 115 cents for a kilowatt-hour until 31 December 2008.

 (3) For the purposes of this section, the day of commencement of production is deemed to be the day on which a generating installation that meets established requirements for the first time feeds electricity into the network or a direct line.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

§ 109.  Implementation of measures of support

  The measures of support specified in section 72(5) of this Act may be implemented retroactively as of 1 January 2002.

§ 109¹.  Implementation of support for connection charge

 (1) If an applicant for support for connection charge, who submitted the application before 1 April 2010, dies, a successor of the applicant, who lived together with the applicant and who complies with the requirements for applicants specified in section 74², is entitled to demand that his or her name be substituted for the name of the original applicant in the application, the decision concerning the grant of the application and the scheme for the provision of support for connection charge.

 (2) In 2009, applicants for support for connection charge who comply with the conditions provided in section 74² of this Act and who have at least one child under 18 years of age living together with the applicant shall be preferred in the preparation of the main list of the scheme for the provision of support for the connection charge.
[RT I 2009, 5, 34 - entry into force 22.01.2009]

§ 110.  Determination of service areas

 (1) A network operator as defined in the Energy Act who, at the time of the entry into force of this Act, holds a valid market licence which has been issued pursuant to the Energy Act for the sale of electricity and/or the sale of electricity distribution services through a network shall submit a written application to the Competition Authority within 180 days after the entry into force of this Act for the determination of its service area. When submitting the application, the network operator must base it on the conditions of the market licence issued to it pursuant to the Energy Act, on the contract entered into with the government and on the actual situation in terms of the provision of network services. The application shall contain a description and layout of the service area in accordance with the requirements of sections 62(1) and 62(3) of this Act.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (2) In the event of failure to perform the obligation specified in subsection 1 of this section, the Competition Authority shall issue an enforcement order to the network operator to obtain performance of the obligation and shall warn the network operator that, in the event of failure to comply with the order, coercive measures may be applied with respect to the network operator in accordance with the Substitutive Enforcement and Penalty Payments Act. The upper limit of the penalty payment is 1,300 euros.
[RT I 2010, 22, 108 - entry into force 01.01.2011]

 (3) Within 180 days as of the due date for the submission of applications specified in subsection 1 of this section, the Competition Authority shall, concurrently, determine the service areas of distribution network operators on the basis of applications submitted by the latter in accordance with the requirements, taking into account the conditions of the market licences issued to the distribution network operators, the conditions of the contracts entered into with the government pursuant to the Energy Act, the actual situation in the provision of network services and the requirements established for distribution network operators and their activities by this Act.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (4) If the service areas determined pursuant to subsection 3 of this section do not cover the entire territory of Estonia, the Competition Authority shall designate the territory not covered by a service area as the service area of the distribution network operator whose service area is adjacent to the territory not covered by a service area. In doing so, the Competition Authority shall take into consideration, amongst other things, the location of existing network in relation to the territory not covered by a service area.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (5) The Competition Authority is authorised to demand that electricity undertakings provide it with the information necessary to make the decisions provided in this section.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (6) The Competition Authority shall inform the distribution network operators of the service areas determined pursuant to this section and shall, if necessary, amend the conditions of the market licences of the distribution network operators and the contracts they have made with the government, in accordance with the provisions of this Act.

 (7) The Competition Authority shall promptly give notice to a network operator specified in subsection 1 of this section for whom the Competition Authority does not determine a service area on the basis of subsection 3 of this section stating that a service area has not been determined. The market licence of the network operator and the contract entered into with the government by the network operator shall become invalid when ninety days have passed from the dispatch of the notice stating that a service area has not been determined.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

 (8) The Competition Authority is authorised to impose an obligation on a network operator specified in subsection 7 of this section to continue its activities in accordance with section 37 of this Act and/or to initiate, in accordance with section 100 of this Act, the expropriation of the network or any other assets used by the network operator in the activity carried out pursuant to the market licence.
[RT I 2007, 66, 408 - entry into force 01.01.2008]

§ 110¹.  Recourse to universal service

 (1) If a small consumer has not entered into an electricity contract with any seller of electricity by 1 January 2013, universal service shall be provided to the consumer starting this date.

 (2) Standard terms and conditions of universal service apply to all network contracts which remain effective after 1 January 2013.

 (3) Sections 76¹, 76²(2) and 76³ of this Act shall apply as of 1 January 2013.

 (4) A network operator shall, prior to 1 January 2013, together with the invoice, present its consumers with information concerning standard terms and conditions of the universal service referred to in section 76²(1) of this Act.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

§ 111.  Development plan for electricity sector

 (1) The first development plan for the electricity sector, as specified in section 2(1) of this Act, shall be prepared and submitted to the Government of the Republic by 1 June 2005.
[RT I 2007, 23, 120 - entry into force 01.05.2007]

 (2) The analysis specified in section 2(1)(5¹) of this Act shall be prepared for the first time in 2007.
[RT I 2007, 23, 120 - entry into force 01.05.2007]

§ 111¹.  Reports submitted to European Commission

 (1) The system operator shall submit the report specified in section 39(7) of this Act every two years not later than by 31 July. The first report shall be submitted by 31 July 2007.

 (2) The Competition Authority shall submit the report specified in subsection 94(4) of this Act by 1 September every year. As of 2010, such a report shall be submitted every two years.
[RT I, 28.06.2012, 1 - entry into force 08.07.2012]

§ 111².  Special provisions governing applications for superficies licences

  If at the request of the undertaking referred to in section 92² of this Act an environmental impact assessment has been undertaken before 1 January 2009 in order to build a wind power plant on a public water body, subsections 3 - 5 of section 22⁷ of the Water Act shall not apply to the procedure for granting a superficies licence and the procedure of superficies licence shall be initiated with respect to the undertaking who requested the environmental impact assessment.
[RT I 2010, 8, 37 - entry into force 27.02.2010]

§ 112. – § 118. [Omitted from this text]

§ 119.  Entry into force of this Act

 (1) This Act shall enter into force on 1 July 2003.

 (2) Sections 15, 16 and 18 of this Act shall enter into force on 1 January 2005.

 (3) Sections 4(5), 29(6), 70(5), 74(4) and 74(5) of this Act shall enter into force by virtue of a separate Act upon the accession of Estonia to the European Union.

 (4) Subsections 6¹ - 6³ of section 58 of this Act shall enter into force on 1 May 2005.
[RT I 2004, 86, 583 - entry into force 01.01.2005]

¹Directive 2009/72/EC of the European Parliament and of the Council concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC (OJ L 211, 14.08.2009, pp. 55–93); Directive 2001/77/EC of the European Parliament and of the Council on the promotion of electricity produced from renewable energy sources in the internal electricity market (OJ L 283, 27.10.2001, pp. 33–40); partially Directive 2009/28/EC of the European Parliament and of the Council on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC (OJ L 140, 05.06.2009, pp. 16–62); Council Directive 90/377/EEC concerning a Community procedure to improve the transparency of gas and electricity prices charged to industrial end-users (OJ L 185, 17.07.1990, pp. 16–24); Directive 2004/8/EC of the European Parliament and of the Council on the promotion of cogeneration based on a useful heat demand in the internal energy market and amending Directive 92/42/EEC (OJ L 52, 21.02.2004, pp. 50–60); Directive 2005/89/EC of the European Parliament and of the Council concerning measures to safeguard security of electricity supply and infrastructure investment (OJ L 33, 04.02.2006, pp. 22–27). [RT I, 28.06.2012, 1 – entry into force 08.07.2012]