Estonian Prime Minister Kaja Kallas has delivered a speech on legislative options at national, bilateral and EU level to alleviate the current crisis in the prices of electricity, which have seriously affected the Baltic region since the autumn of 2021, Estonian public broadcaster ERR reports.
Addressing the Riigikogu on Tuesday, November 18, Kallas from the ruling Reform Party noted that the current EU Emissions Trading System or the CO2 quota mechanism is not as good as it can be and it has to be enhanced to make price changes less chaotic. «Life has shown us that the current solution is not optimal and it must be supplemented. It is understandable and tolerable for the emissions trading system to be more linear and not the rollercoaster it is today,» the head of the government stressed.
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Another way to stabilize the situation would a larger number of fixed-price electricity contracts and better conditions for electricity suppliers. According to Kallas, Estonian legislators currently work on the country’s electricity market law to define the conditions for cancelling contracts.
«Electricity providers say providing security could lower fixed-price contract prices by a couple of dozen euros per megawatt-hour. /…/ At the moment, consumers can step out of fixed-price contracts at any time, which does not motivate providers to offer such contracts,» Kallas reasoned as quoted by ERR.
Estonian PM lists ways to stabilise electricity prices and market
