While income not received from the production of electricity and oil is still being calculated, Estonian state-owned energy group Eesti Energia may have suffered up to EUR 100,000 in damages as a result of a shutdown of an energy production unit and an oil plant caused by a failure at an Elering-owned substation just outside of Narva on May 18.
Eesti Energia spokesperson Priit Luts said on May 20 that the electricity and oil not produced and income not received as a result of the blackout were in the process of being determined.
There are no fines originating from Nord Pool market rules, he continued. Possible fines or increased expenses will originate from general market regulations, such as acquiring balance energy.
Eesti Energia board member Raine Pajo said that the extent of the damages could be estimated at EUR 50,000-100,000. He was unable to say, however, whether a damage claim would be submitted to Elering as well.
The Competition Authority launched supervision proceedings over transmission system operator (TSO) Elering AS in connection with a blackout that occurred in Narva, Narva-Joesuu and Sillamae on May 18.
The goal of the investigation is to determine the case of the blackout as well as whether it constituted a violation of the Electricity Market Act, the Competition Authority announced.
“As this was a serious blackout, it is the authority’s job to draw conclusions based on what happened, and issue recommendations regarding how to avoid similar incidents in the future,” Competition Authority Director General Mart Ots said.
Transformers in an Elering substation near the border city of Narva shut off as a result of a fire on May 18, leaving a significant portion of the population of Ida-Viru County without power. The substation failure also led to the shutoff of the 8th energy block of Eesti Energia’s Eesti Power Plant and Enefit280 oil plant. (ERR/Business World Magazine)