Second reading of the draft law amending the Electricity Market Act (555 SE)
Session: 15th Riigikogu, 5th session, plenary session
Date: 2025-04-23 18:18
Total Speeches: 96
Membership: 15
Agenda Duration: 1h 58m
AI Summaries: 96/96 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
Under agenda item five, the second reading of draft law 555 amending the Electricity Market Act was considered following the Riigikogu’s first reading. The core topics were closely related to the arrangement for procuring and accounting for balancing power (frequency reserves) and defining the mechanisms necessary to continue islanding. The draft law aims to ensure the security of the electricity network and price stability through balancing and to preserve the operational capacity of the oil shale power plants – further noting that the discussion of the regulation took place against the background of an engagement plan and feedback from interest groups. Attention was focused on both regulatory issues (whether the fee is a public-law tax or a system service price) and technical issues (accounting arrangements, supervision and measuring instruments).
Decisions Made 1
Second reading completed; the draft will be put on the agenda for a third reading on May 7th, and the final vote.
Most Active Speaker
The most active speaker: Urmas Reinsalu. Position: right-wing, Isamaa faction. He was one of the most prominent participants, engaged in extensive and critical discussion, and presented a number of observations and noteworthy claims regarding the size of expenses and the distribution of economic costs, which deeply reflected the tension between the opposition and the governing parties.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi announced the fifth item on the agenda and invited Mario Kadastik, a member of the Economic Committee, to present the second reading of Draft Bill 555.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Mario Kadastik introduced a draft bill with 555 amendments and discussed the financing of procuring balancing capacity and settlement, emphasizing that this is not a public-law tax but a system service that benefits consumers and keeps oil shale reserves on the market, and the day of the second reading is 23 April, the third on 7 May, and the final vote will follow.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanks the listeners, announces that there are questions, and invites Züleyxa Izmailovat to answer.
Züleyxa Izmailova
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Züleyxa Izmailova asks Mario to clarify the islanding operation costs associated with synchronization with European power grids, who should bear these costs, and which fees and amounts will be added to electricity consumers starting January 1 next year.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
During the processing of the draft bill, some changes have occurred: the funding for the congestion charge continues until the end of the year, and further charges will be invoiced in accordance with the methodology approved by Elering, which splits the charge evenly between producers and consumers, about half a cent per kilowatt-hour, and although the balancing managers' proposals may still be under discussion, this does not change the text of the law, and the allocation will be approved by Elering together with the Competition Authority.
Aseesimees Toomas Kivimägi
AI Summary
Vice-chairman Toomas Kivimägi asks Urmas Reinsalu to speak.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu notes that the forecasts for the 2026 frequency reserve fee are unrealistic, because the initial 60 million turned out to be too low, and 11 million euros in March clearly points to more than 100 million, and he asks who will pay, how it will be distributed, and whether it is a tax or an obligation that the parliament should enact into law, and later the consolidated annual burden on society will become evident.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kadastik said that resources are currently scarce in the market, and due to the expansion of battery deployment and future larger start-up costs, prices may temporarily rise, but according to the €60 million calculation the fee is €5.39/MWh (for both producers and consumers), and under the same methodology this could be €7–8/MWh in the future, and it would be allocated, on a basis approved by the Competition Authority, equally between producers and consumers, to avoid inequality and excessive burden on neighboring markets.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi asked Peeter Ernits to pose the following question.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Something was said from the hall, and it is dealt with separately in the next question.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman, Toomas Kivimägi, asks Peeter Ernits to present the following question.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
He said that he hadn't thoroughly delved into the matter, and he posed two questions: whether impact assessments have been made, and whether this law is good for the Estonian people.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
From the presentation it appears that impact assessments show that for the proposed solution the sharing of the system service charge between consumers and producers is intended to maintain grid frequency and to ensure the transition to oil-shale energy, although the methods in Latvia and Lithuania differ and yield different price effects.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman, Toomas Kivimägi, asks Rain Epler to take the floor.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler criticizes the excessive use of the word "justice" and poses two questions: whether the minister's decision to charge Elering with this cost until the end of the year is a temporary, sensible measure in the context of energy management, and whether the need for frequency reserves or balancing capacity grows with the increase in capacities for regulating electricity production.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Mario Kadastik explained that it might have been his slip of the tongue and that he wanted to say "correct," but the most important points were that the overload surcharge had been used to lower the tariff, the postponement was related to the proceedings of Bill 555, not to municipal elections, and the need to maintain the frequency will probably grow with stochastic power outputs.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman invited Urmas Reinsalu to speak.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu posed two concrete questions to Kivistik: how much more should consumers pay in addition due to these two charges, compared with €700 million, and whether the Kiisa power plant, which is owned by the TSO, affects the costs of the frequency reserve or the revenue earned by the reserve service provider.
Aseesimees Toomas Kivimägi
AI Summary
The deputy chairman Toomas Kivimägi thanks.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu asks whether he is actually paying 4,000 euros per megawatt right now and whether this information is relevant.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
This draft introduces two new mechanisms – islanding operation and a frequency reserve – whose total cost is estimated at 90 million euros, and their aim is to make the energy market and the frequency reserve cheaper, improve the operation of generation, and expand the use of small batteries.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman, Toomas Kivimägi, asks Züleyxa Izmailovat to present the second question.
Züleyxa Izmailova
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
They asked the Commission whether it was discussed how to cover the costs related to island management in Latvia, Lithuania and Finland, and whether consumer representative organisations were involved in the proceedings concerning the draft proposal, and what greater obligations are planned for consumers.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The state uses islanding to keep oil shale power plants running and to ensure electricity supply and price stability until an alternative solution (for example, gas-fired plants or a nuclear power plant) with a capacity of about 1000 MW is found, in which the main stakeholders such as the Chamber of Commerce and Industry and the Employers' Confederation are involved.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi asks Peeter Ernitsat to come and perform.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits addresses the chair and the presenter, asking them to give a brief overview of Latvia's and Lithuania's approaches and to explain what he meant by the assertion that we have oil shale and they do not.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The presentation stressed that differences in the methodology and pricing used for maintaining the frequency reserve in Latvia and Lithuania have increased actual costs, and Latvia's share is limited; consequently Estonia and Lithuania have had to activate more resources than forecast, and as a solution broader cooperation and tariff adjustment to cover the gaps are seen.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi invites Rain Epler onto the stage.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler warns that a change in the law and the sale of the Kiisa power plant could create a situation where the frequency reserve is offered to the market as an expensive gas-fired plant, and the purchase price is returned through the standby fee via Elering, batteries are used for arbitrage and the margin grows, but the price of electricity and related costs go to Estonians — is that possible?
Aseesimees Toomas Kivimägi
AI Summary
The deputy chairman, Toomas Kivimägi, thanks.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kadastik emphasizes that the frequency-reserve market is very liberal and also allows participation by home batteries and small suppliers. The market tries to optimize itself, and Kiisa's 200 MW energy-storage bank is currently mostly profitable for the market, although there is a risk of manipulation.
Aseesimees Toomas Kivimägi
AI Summary
The deputy chairman Toomas Kivimägi invited Riina Sikkut onto the stage.
Riina Sikkut
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Riina Sikkut stressed the need for an overview of the big picture in the committee, noted the draft bills in progress (frequency reserve, islanding, and various detailed questions), and asked when ENMAK, i.e., the energy sector development plan, would reach the Riigikogu for discussion.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
They said that the specific draft bill is not directly related and has not been discussed, but as far as I know, it will reach the government in the coming months and later here as well, and ENMAK, to my knowledge, is in the final stages of approval.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi invited Jaak Aabi to speak.
AI Summary
Jaak Aab notes that the bill is very technical and concerns consumers, and asks whether it would have been reasonable for the Riigikogu to review and approve the energy sector development plan before addressing its separate parts, since desynchronization and the oil shale plant reserves affect the development of other generation capacities and the development of storage.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kadastik said that the energy sector development plan has been updated several times, and the issue of disconnecting from the Russian grid had been known for a long time, and the current draft is not directly related to ENMAK, although the retention and withdrawal of oil shale energy have long been known, and Eesti Energia wants to sell or close those plants.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanks and announces that there are no further questions, opens the negotiations, invites Urmas Reinsalu to take the floor, and asks for eight minutes of extra time.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu accuses the government of clumsiness in energy policy, points out the gap between promises and reality, and warns that the planned costs of the frequency reserve and the island operation fee could bring up to 160 million euros to consumers and businesses, therefore he calls for halting the second reading and presenting a transparent and thorough development plan for the energy economy.
Aseesimees Toomas Kivimägi
AI Summary
The deputy chairman Toomas Kivimägi expressed thanks.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
They finish their speech and hope to persuade the Social Democrats to support Isamaa's proposal and the motion to interrupt.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi thanked the audience.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu noted that there is already a lot of benefit in this matter, and announced that he would table a motion to suspend proceedings.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi corrected the record, stating that Mario's surname is Kadastik, not Kivistik, apologized and gave Riina Sikkut the opportunity to respond, so that the debate would be fair.
Riina Sikkut
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Riina Sikkut emphasized that in order to make major decisions about energy policy there must first be a clear overall picture, and the discussion of the draft bill in the Riigikogu must take place in accordance with the questions raised at the Social Democrats' table and with the public's expectations.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanked the audience, announced that Urmas Reinsalu's talks could continue outside, not in the hall, and that we would continue with remarks, inviting Kalle Grünthali to take the stage.
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kalle Grünthal asks the listeners to give him eight minutes.
Aseesimees Arvo Aller
AI Summary
The speech lasted eight minutes.
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kalle Grünthal claims that the Reform Party government is ruling Estonia from Brussels, selling off the state's natural resources and offshore wind farms, and restricting local governments' constitutional decision-making authority, and is calling on the people to engage in grassroots resistance to restore constitutional authority in Estonia.
Aseesimees Arvo Aller
AI Summary
The vice-chairman thanked and announced that Rain Epler will come next.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler stated that the Social Democrats' mantra does not reflect reality, stressed the security issue of islanding, and discussed the balance of energy and the CO2 emissions comparison between oil shale and gas, noting that sufficient oil shale capacity would reduce the need for wind and solar energy.
Aseesimees Arvo Aller
AI Summary
Vice-chairman Arvo Aller asks to be granted three more minutes.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler stressed in the debate that entrepreneurs must always follow the legislative framework and not create temptations or opportunities to violate these rules, because new system services are developing on the basis of stochastic energy, and if they are poorly organized, problems may arise later.
Aseesimees Arvo Aller
AI Summary
In the negotiations, only one counterstatement is allowed. Riina won't be able to say any more, although she was mentioned, and Jaak Aab is asked to speak next.
AI Summary
Jaak Aab notes that the impact of desynchronization is clear, and that to balance the energy system it is necessary to quickly update the energy economy development plan, take into account various scenarios, and direct investments into storage capacities and dispatchable generation capacities, not only rely on wind- or oil shale-based solutions, in order to ensure the country’s system-wide reliability and reasonable prices.
Aseesimees Arvo Aller
AI Summary
Vice-chairman Arvo Aller asks the listener whether they would like some extra time.
Aseesimees Arvo Aller
AI Summary
The vice-chair thanks and invites Mario Kadastik to speak.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kadastik emphasized that the cost accounting in the methodology developed by Elering and approved by the Competition Authority is public and reasonable, and the annual figure of 120 million euros is exaggerated, because it depends on market changes and the arrival of batteries, and until nuclear energy arrives it is necessary to use wind and batteries to ensure energy security and avoid populist overestimations.
Aseesimees Arvo Aller
AI Summary
The vice-chairman thanked and invited Yoko Alender to speak.
Yoko Alender
Profiling Eesti Reformierakonna fraktsioonAI Summary
The presentation emphasizes that maintaining the oil shale reserve and the desynchronization and integration with the Continental European frequency band strengthen Estonia's energy security and the Baltic States' grid, but for consumers it may bring about around 13 euros per year in additional costs and up to 0.8 euro cents per kilowatt-hour.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller asked Rain Epler to decide whether he would deliver a rebuttal or listen to Lauri Laatsi, and said that he would be given an immediate rebuttal.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler claims that electricity production from oil shale is half as expensive as gas, because in Rotterdam the price of gas is about 34 euros per megawatt-hour, while a ton of oil shale on land costs about 20 euros and, without environmental charges, it is twice as cheap as gas.
Aseesimees Arvo Aller
AI Summary
The vice-chairman thanks the audience and invites Lauri Laats onto the stage next.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats stated that the draft bill 555 aims to guarantee a 1000 MW oil shale reserve, but in practice it is almost impossible to realize, which could raise the price of electricity and increase the risks of selling the state's strategic assets, such as the Kiisa power plant, and deepen a crisis of trust and international problems related to the green transition.
Aseesimees Arvo Aller
AI Summary
Vice-chair Arvo Aller asks if you would like some extra time.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats says that it would be really nice.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller asks for three more minutes.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats criticizes the acceleration of the green transition, points to international signals of problems, emphasizes the burden on taxpayers and the state, and calls for looking at the whole matter in its entirety and, if necessary, slowing down the process.
Aseesimees Arvo Aller
AI Summary
The deputy speaker Arvo Aller said that Urmas Reinsalu's speech could only be on behalf of the Isamaa faction, although the hall announced it on behalf of the Reform Party.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu hints that only Isamaa may speak, asks not to be so harsh and would like to take three minutes of extra time.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller requests three additional minutes.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu said that the bill would add approximately 154 million euros in additional charges to consumers and producers, which would raise the price of electricity and threaten Estonia's energy security and the state's economic interests, and he urged Parliament to reject the bill and to pursue a long-term, competitive energy policy.
Aseesimees Arvo Aller
AI Summary
Arvo Aller asks Mario Kadastik whether he will immediately mount a rebuttal or listen to Lauri Läänemets, and notes that Lauri Läänemets may mention you; Kadastik does not want to answer right away.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kadastik stresses that, although there is talk of about 120 million and of 20–100 MW capacities and the Kiisa plant’s autumn shutdown, the actual numbers and CO2 quotas are becoming increasingly important, because the price of oil shale electricity with quotas is about 200 EUR/MWh and without quotas about 130 EUR/MWh, and last year the average price was 84 EUR/MWh, so the numbers play a central role.
Aseesimees Arvo Aller
AI Summary
Vice-chairman Arvo Aller thanked the audience and invited the next Lauri Läänemetsa; the discussion can be held outside the main hall, and there will be a speech at the podium.
Lauri Läänemets
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Lauri Läänemets emphasizes that renewable energy is not free, and that nuclear and oil shale energy—as well as the investments made in them—must ultimately be paid for, therefore there is a need for an honest and mathematical assessment of energy prices and tariffs.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller asks for three more minutes.
Lauri Läänemets
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Lauri Läänemets emphasizes that Estonia needs a holistic view of the energy system and coordinated development activities, because the current renewable-energy-centric approach and an incomplete vision are making energy prices high, and the main question is where electricity will come from at all in ten years – the government must address this.
Aseesimees Arvo Aller
AI Summary
The vice-chair informed that negotiations are under way regarding the draft bill for the second reading of 555 SE and the amendment to the Electricity Market Act, and asked Urmas Reinsalu to deliver a reply speech.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu said that Lauri Läänemetsa's assessment of the Estonian government's energy policy is relevant, because it reveals the lack of competence in making basic infrastructure and energy choices, and the 2.6-billion-euro offshore wind farm subsidy plan is troubling, for which one should thank Läänemetsa.
Aseesimees Arvo Aller
AI Summary
Deputy Speaker Arvo Aller thanks the listeners and emphasizes the importance of their time.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
This enables us to move forward with today's draft bill with a critical eye.
Aseesimees Arvo Aller
AI Summary
The vice-chairman thanks you and notes that your time is up.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
They ask why we should trust the government on this issue, when we can't trust them on other issues.
Aseesimees Arvo Aller
AI Summary
Arvo Aller thanked for the opportunity to respond, announced a two-minute response and invited Lauri Laats to speak next.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
In the speech it is claimed that even the Social Democrats have had three years in which energy policy has not been developed; the coalition decided in February to subsidize offshore wind farms in the absence of knowledge, and Swedish experience shows that wind-farm companies have incurred losses for seven consecutive years, which is why the handling of the topic is very cautious.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller thanked and announced that the negotiations would continue, and asked that the floor be given to Andres Metsoale.
Andres Metsoja
Profiling Isamaa fraktsioonAI Summary
In his presentation, Andres Metsoja expresses concern that although there is talk of speeding up renewable energy, bureaucracy, connection costs, and restrictions in sparsely populated areas create systemic confusion and a paradox that wind turbines could be installed only in areas of low population density, but environmental protection restrictions often do not permit them there.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller asks for another three minutes.
Andres Metsoja
Profiling Isamaa fraktsioonAI Summary
According to presenter Andres Metsoja, a paradox arises: if there are customers and the grid, production cannot take place, and if customers are absent, production should take place; therefore he calls on the state and local governments to implement clear compensation schemes, grid and tax incentives, and stricter environmental impact assessments, so that renewable energy targets are actually achievable and communities would feel safe and involved, rather than see it only as a problem.
Aseesimees Arvo Aller
AI Summary
According to Arvo Alleri, negotiations will be closed and they will begin reviewing 20 amendment proposals, of which 1st, 2nd, 4th, 5th and 6th were prepared with the Economic Committee: to be taken fully into account, 3rd Mario Kadastik: to be considered substantively, and 7th the Isamaa faction: to be left unconsidered.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
Helir-Valdor Seeder thanks you and asks you to vote in favor of this amendment proposal.
Aseesimees Arvo Aller
AI Summary
Vice-Speaker Arvo Aller began preparing for the vote, informed members of the Riigikogu about the seventh amendment proposal submitted by the Isamaa faction, and said that the leading committee recommends disregarding it, after which he asked them to take a stand and vote.
Aseesimees Arvo Aller
AI Summary
The presenter announced that the initial proposal did not receive sufficient support (22 in favor, 47 against) and the amendment proposals will continue, where the majority was advised to take them fully into account, and the Isamaa faction's proposal to suspend the second reading of Bill 555 will be put to a vote.
Aseesimees Arvo Aller
AI Summary
The proposal received 16 votes in favour, 47 against and 0 abstentions, therefore it did not gain support, and the second reading of Bill 555 has been completed.