Inquiry concerning the reliability of electricity supply (No. 590)
Session: 15th Riigikogu, 3rd session, plenary sitting
Date: 2024-01-22 20:34
Participating Politicians:
Total Speeches: 15
Membership: 15
Agenda Duration: 25m
AI Summaries: 15/15 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu debate focused on the interpellation concerning electricity supply reliability, submitted by Riigikogu members Andres Metsoja, Helir-Valdor Seeder, Jaanus Karilaid, Tõnis Lukas, Riina Solman, and Priit Sibul. This interpellation was prompted by the extensive and prolonged power outages that occurred during the snowfalls of December 2023. Interpellator Andres Metsoja emphasized that the electricity grid problem remains acute, pointing out that approximately 100 million euros would need to be invested immediately to ensure the reliability of depreciated lines, while the current network fees only allow for investments of 34 million euros per year. Metsoja also criticized the government's lack of vision in ensuring supply reliability in sparsely populated areas, drawing attention to the paradox where in cities there is talk of the '15-minute city,' but in rural areas, households must be prepared to cope for 72 hours without electricity.
Minister Mart Võrklaev acknowledged the seriousness of the problem, noting that the December outages were not normal. He explained that the necessary funding sources for ensuring quality service must come from network fees, but the methodology established by the Competition Authority does not guarantee sufficient financing for investments. Võrklaev pointed out that Elektrilevi's investment need for the years 2024–2028 is 572 million euros according to the base scenario, with an additional 300 million euros for investments related to increasing renewable energy and climate resilience. The Minister confirmed that the expansion and maintenance of line corridors are planned and supported the view that network fees must reflect justified costs, including the establishment of fixed fees, to ensure a fairer distribution of costs. The possibility of listing Elektrilevi on the stock exchange to raise additional capital was also discussed.
Decisions Made 1
No formal decisions were adopted during the discussion of the query. It was an informative and political discussion, the purpose of which was to get clarification from the government regarding their plans for ensuring the security of electricity supply.
Most Active Speaker
The most active speaker was Andres Metsoja, a Member of the Riigikogu and one of the initiators of the interpellation. Metsoja submitted the formal inquiry, posed clarifying questions to the minister, and delivered the closing statement during the debate. His stance was critical of the government, stressing the necessity of swift and extensive investments in the power grid and criticizing the state's lack of vision regarding the development of shared use of public infrastructure and ensuring supply security in rural regions. Metsoja pointed out that the current situation, where network fees fail to cover the investment requirements, jeopardizes Estonia's integrity and the quality of the living environment outside urban centers.
Aseesimees Toomas Kivimägi
AI Summary
Agenda Item No. 8 concerns the interpellation regarding the security of electricity supply, submitted on December 20, 2023, and Riigikogu member Andres Metsoja was invited to deliver the presentation on it.
Andres Metsoja
Profiling Isamaa fraktsioonAI Summary
To ensure that Estonia's electricity supply is reliable, it is necessary to increase investments in the grid to approximately 100 million euros annually (up from the current approximately 34 million). This is required to reduce outages and guarantee security of supply, including in rural areas. Regarding this, Andres Metsoja submitted seven questions to the government to clarify the expectations of Elektrilevi’s owner. These questions covered increasing investments, expanding network corridors, utilizing underground cabling options, cooperating on the cross-use of public infrastructure, and updating the network development plan, while also taking nuclear energy considerations into account.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi offered his thanks and stated that the time was very strictly scheduled, requesting Minister Mart Võrklaev to proceed to the Parliament's rostrum to answer the interpellators' questions.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev said that to prevent long-term power outages, Elektrilevi’s investments and their financing through network fees will be increased, potentially involving measures such as raising the tariff and fixed fee, as well as maintaining and expanding line corridors, in order to ensure a high-quality and sustainable network supply across all of Estonia.
Aseesimees Toomas Kivimägi
AI Summary
The address was an expression of gratitude, followed by a round of questions during which Priit Sibul was asked to respond.
Priit Sibul
Profiling Isamaa fraktsioonAI Summary
Priit Sibul pointed out that while Elektrilevi notifications suggest the connection has been restored, in reality, one phase is almost entirely faulty, meaning the consumer is not receiving the service. This creates a false impression and is confusing. Consequently, he requested a correction and apologized for the confusion caused by the transition period.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev said that he understands the concern and has personally experienced the power fluctuations in December and January, which is why it is important to quickly switch off essential equipment. He agrees that Elektrilevi needs to improve its crisis management so that adequate information reaches people and they are informed that their devices could suffer significant damage. He will make a note of this, pass it on to the management, and emphasizes that the concerns must be brought to those who should be dealing with the issue.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Chairman Toomas Kivimägi invited Andres Metsoja to speak.
Andres Metsoja
Profiling Isamaa fraktsioonAI Summary
Andres Metsoja asks how listing the utility company on the stock exchange could attract additional funding, and how the billion is planned to be raised in order to improve network reliability.
Rahandusminister Mart Võrklaev
AI Summary
The government must first discuss the concept of either listing Elektrilevi on the stock exchange or privatizing a portion of its shares. This arrangement would ensure that some of the proceeds are transferred to the parent company for the divestment of existing shares, while the issuance of new shares would generate additional capital for the company to use for investments. The final decision on this matter must be prepared in collaboration with the company. While listing would enhance the transparency and oversight of the company’s operations and increase accountability, Elektrilevi and the Eesti Energia group have faced internal issues, including personnel shortages and challenges in managing maintenance and investment projects, all of which require resolution.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanked the audience, announced that the question period was over, opened the floor for debate, and called upon Andres Metsoja.
Andres Metsoja
Profiling Isamaa fraktsioonAI Summary
In his presentation, Andres Metsoja emphasized that lowering electricity prices and investing in the grid are vital, and that implementing the principles of shared use and planning grid expansions via road and highway infrastructure require a clear vision, well-considered technical solutions, and accountability, because the protection of forest land and factoring in climate commitments must not be overlooked.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi requests three more minutes.
Andres Metsoja
Profiling Isamaa fraktsioonAI Summary
To ensure the survival of Estonian democracy, serious investments are needed in the rural electricity grid, road and communication infrastructure, along with clear accountability for the protection of private property.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Chairman Toomas Kivimägi expresses his thanks and announces that the debates have concluded and the consideration of this agenda item is finished.