Eesti Energia Unlikely to Be Split Before Elections, Says Minister
OREANDA-NEWS. April 17, 2014. Economy Minister Urve Palo said the coalition's plan to divide state-owned energy giant into three will probably not take place before the next parliamentary elections in March next year.
The coalition agreement between Palo's Social Democrats and the Reform Party says the government will analyze and prepare removing electric grid operator Elektrilevi and state shale oil reserve management duties from Eesti Energia.
Palo told ERR radio today that the Cabinet has not made a decision on the split, and any decision is dependent on studies conducted by the Ministry of the Environment.
She said the company had done well and the removal of Elering, the transmission system operator, went smoothly.
Speaking about Elektrilevi, she said a separate company would be more transparent, as customers can be sure any money they pay the company will go towards investments, although Eesti Energia said that is the case right now.
Last week, the management of Eesti Energia said the coalition's plans could cost the company billions of euros. Detaching electric grid operator Elektrilevi from Eesti Energia could mean the premature repayment of 938 million euros in loans alone.