Opposition blames government decisions for Eesti Energia’s financial troubles

Opposition politicians say past government decisions contributed to Eesti Energia’s financial difficulties, while parties remain divided over the state-owned company’s future energy production, ERR reports.

The company’s large-scale job cuts have raised concern among politicians. Centre Party deputy leader Lauri Laats said the buyback of Enefit Green shares alone cost Eesti Energia more than 205 million euros. He argued that expanding renewable energy would not make electricity cheaper and called for continued investment in oil shale, as well as seeking exemptions from the European Union.

Laats said energy sources should be balanced, with wind, solar and oil shale all included. He also called for efforts to lower the cost of carbon dioxide emissions and said further renewable energy would require investment in the electricity grid, potentially increasing network charges.

Isamaa leader Urmas Reinsalu said the layoffs reflected wider uncertainty in energy policy. He called on the state to give Eesti Energia a clear direction and ensure investment to keep its oil shale power units operational. Reinsalu also questioned a planned procurement of gas power plants, saying it would be more appropriate to maintain oil shale units and fund them through Elering’s scheme.

Finance Minister Jürgen Ligi of the Reform Party said Eesti Energia did not need to preserve all its current jobs or production units. He said the company should become competitive and have a future that does not depend on oil shale electricity, arguing that the existing plants were near the end of their operating lives and that financing new ones would be difficult.

The Social Democrats also see renewable energy as the long-term future, but say oil shale should remain available as dispatchable capacity during the transition. Party secretary Piret Hartman said the state should also support Ida-Virumaa through the economic and social transition, including continued investment and retraining so workers who lose their jobs can find new ones.

It remains unclear how much public money the state is prepared to invest in Eesti Energia’s future.