Privatization of enterprises
Session: 15th Riigikogu, 3rd sitting, information briefing
Date: 2024-02-14 15:27
Participating Politicians:
Total Speeches: 10
Membership: 15
Agenda Duration: 13m
AI Summaries: 10/10 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
During the Riigikogu session, a question was addressed to Finance Minister Mart Võrklaev regarding the plans for the privatization of state-owned enterprises, particularly Elektrilevi and Enefit Green, stemming from the coalition agreement. The questioner, Riigikogu member Kalle Grünthal (EKRE), expressed deep concern over the plans, citing expert assessments that privatization would neither improve services, lower network fees, nor ensure better energy security. Grünthal demanded a concrete answer from the minister regarding the real benefit this plan would bring to the Estonian people, emphasizing that electricity is a strategic commodity essential for life.
Minister Võrklaev (Reform Party) explained that the review and partial privatization of state-owned enterprises are necessary to involve the private sector and bring additional funds into the companies. In the case of Enefit Green, the objective is to increase its presence on the stock exchange to offer investors an opportunity to participate in the company's growth. As the main objective of Elektrilevi's partial privatization, the minister highlighted the need to raise additional capital for improving supply security and investing in the network, referencing the unacceptable power outages experienced during the winter. Võrklaev stressed that listing the company on the stock exchange would also improve the quality of management and transparency. He added that taking the company public would not affect the price of electricity, as it is a network company, and that final decisions are still under discussion in the cabinet.
Decisions Made 1
No decisions were made. Finance Minister Mart Võrklaev confirmed that the plan for the privatization of state-owned enterprises has been submitted to the cabinet, and the discussion is currently ongoing. Final decisions will be made at the government level in the future. The aim of these plans is to bring additional resources into the companies and improve management.
Most Active Speaker
The most active speaker was Kalle Grünthal (EKRE), a member of the Riigikogu, who twice questioned the Minister of Finance regarding the benefits of privatizing state-owned enterprises for the Estonian people. Grünthal adopted a strongly critical stance (opposition), casting doubt on the positive effects of privatization on consumers, network tariffs, and energy security, and accused the minister of avoiding answering the question.
Esimees Lauri Hussar
AI Summary
Riigikogu member Kalle Grünthal asks Minister of Finance Mart Võrklaev about the privatization of companies.
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Grünthal refers to the plan to privatize Elektrilevi and Enefit Green, which was published on the ERR news portal on January 25, and highlights the opinion of experts that privatization will neither improve services, nor make network fees cheaper for consumers, nor guarantee energy security. He then asks what benefit this will bring to the Estonian people.
Rahandusminister Mart Võrklaev
AI Summary
The coalition decided to continue the privatization of state-owned enterprises, review state assets, and consider either increasing or partially selling its stakes in Enefit Green and Elektrilevi in order to raise funds and involve the private sector, while also increasing management transparency—the final plan will be confirmed by the cabinet.
Esimees Lauri Hussar
AI Summary
The Chairman thanks [the previous speaker] and invites Kalle Grünthal to ask a clarifying question.
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Grünthal said that Võrklaev did not answer his question about the benefit to the Estonian people, and instead emphasized the necessity of electricity for life and strategic security. He then asked a second time for a concrete answer regarding what specific benefit this would bring.
Rahandusminister Mart Võrklaev
AI Summary
A partial listing of the Eesti Energia group would provide additional investments (e.g., for Elektrilevi and thermal power plant projects), improve management and transparency, and create an opportunity for investors to participate through dividends. At the same time, this will not affect the price of electricity, and the main goal is to increase grid investments and improve the reliability of electricity supply for consumers.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar offered his thanks and requested that a follow-up question be directed to Siim Pohlak.
Siim Pohlak
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Siim Pohlak stressed that the electricity grid constitutes nationally critical infrastructure and that extreme caution must be exercised with privatization. He went on to ask whether an analysis had been carried out regarding potential price hikes and scenarios for consumers.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev said that Elektrilevi’s investments must be covered through tariffs, as the current fee does not cover the entire need. He added that while listing the company on the stock exchange and privatization are under consideration, decisions will be made in conjunction with the government, pending the Ministry of Climate’s development plan, in order to bring additional funds into the company and prevent winter power outages.
Esimees Lauri Hussar
AI Summary
Lauri Hussar thanks the audience and informs them that he is concluding the consideration of the seventh question.