2014 was a Year for Completing Major Investments for Elering

With the completion of major investments, Elering invested a total of 100.5 million euros in the development of the electricity system last year.

The majority of investments were channelled into completing the emergency reserve power plant complex (52 million euros) and the Estonian-Finnish direct current interconnection project EstLink 2 (18 million euros). In addition to its own finances, Elering also took out loans from the Nordic Investment Bank in the sum of 35 million euros to finance the investments.

“Last year marks the ending of a phase of development for Elering. Many of the goals set five years ago, when Elering was established, have been achieved. EstLink 2, the emergency reserve power plant complex in Kiisa and the Tartu-Viljandi-Sindi high-voltage overhead line were completed. These projects support the development of the regional electricity market as well as the security of electricity supply for Estonian consumers,” said Taavi Veskimägi, Chairman of Elering’s Management Board.

According to the audited report for Elering’s 2014 financial year, the company’s operating profits totalled 50.8 million euros with revenues amounting to 130.8 million euros. Elering’s net profit was 40.7 million euros. Revenues fell by 2.7 per cent last year. This is due to the circa seven per cent decrease in tariffs since April 2014 and the fact that, since last July, the cross-border capacity auction revenue is no longer reflected in the profit and loss account. Instead, the revenues are channelled directly to a special fund created to strengthen the Estonian transmission capacities from north to south. Though the depreciation of Elering’s fixed assets increased by 7.6 million euros in relation to the launching of large investments, the company was able to reduce operating costs by 1.4 per cent to 80 million euros.

Assets totalled 790.1 million euros at the turn of the year, with equity of 314.8 million euros and 347.9 million euros in loans.

Elering’s good business results enable the company to pay dividends to the state in the amount of 20 million euros.

The report for Elering’s financial year of 2014 can be seen here.

Elering is managing the Estonian electricity and gas transmission system with the aim of securing Estonian consumers quality energy supply at all times.