Elering Invested a Record Sum of 203 Million Euros Into the Electricity System

The transmission system operator Elering AS invested a record sum of 203.3 million euros last year, 129.3 million euros more than the year before.

The biggest investment objects were the DC interconnections between Estonia and Finland EstLink 1 (38.3 million euros) and EstLink 2 (136 million euros), as well as the emergency reserve power plant in Kiisa (56.7 million euros). The investments were financed by bank loans from the European Investment Bank (75 million euros) and the Nordic Investment Bank (10 million euros).

According to Elering’s Chairman of the Management Board Taavi Veskimägi, there is reason to be content with the concluded financial year. “The last financial year beat the record of all times in terms of investments and income. I would like to underline that we were able to reach all goals established for our company and to launch substantial investments in 2013 as planned. In addition to all this, the transmission network tariff will also drop for the consumers from April 1, 2014, as a result of last year’s results,” Veskimägi explained.

As stated in Elering’s audited Annual Report of 2013, the company earned 53.3 million euros in operating profit with total revenue of 134.4 million euros. The revenue grew by 24.9 million euros compared to 2012, whereas operating expenses grew by 12.9 million euros only.

Financial costs fell by 2.1 million euros compared to the previous year and this together with an increase in operating profit resulted in net profit growing by 14.1 million reaching 49 million euros.

The increase in total revenue and profit was mainly influenced by cross-border auctions which generated a profit totalling 14.2 million euros. Auction profit increased by 10.2 million euros compared to 2012. Therefore, the implemented market arrangement guarantees the adequate pricing of cross-border connections. The auction profit is taken into consideration by Elering in its transmission tariff calculations meaning that the earned profit diminished the network tariff payable by electricity consumers. As a result of auction profit, Elering’s average network tariff will be 7.8% lower during the new tariff period starting on April 1.

In the end of 2013, Elering’s assets totalled 670.9 million euros, equity 274.1 million euros, and liabilities 396.8 million euros.

Elering’s Annual Report 2013 is available here.

Elering is Estonia’s transmission system operator, whose main task is to ensure that Estonia’s consumers enjoy a consistent, high-quality electricity supply at all times. To ensure the security of supply, Elering maintains and develops the domestic transmission network and external interconnections. Elering manages Estonia’s electricity system in real time, ensuring the functioning of the transmission network and the balance between output and consumption.