Unexpected termination of distribution transformer contracts by Elektrilevi’s partner Energo Veritas may cause a delay in the completion of network connections.
Energo Veritas, a subsidiary of Harju Elekter, has ceased cooperation in the supply of distribution transformers and notified Elektrilevi of the extraordinary termination of contracts. Under the contracts entered into in March 2021, Energo Veritas undertook to supply Elektrilevi for a minimum of three years with distribution transformers required for the development of the distribution network.
“The termination of the contract by our long-term partner is unfortunate and will directly affect our subsequent activities,” said Mihkel Härm, Chairman of the Management Board at Elektrilevi, “but we are already negotiating with new potential suppliers. The situation is promising, as the competence and raw materials required to produce transformers has not gone anywhere. Currently, there are approximately 20 potential transformer suppliers on the market, with whom we are in active communication. Regardless, entering into any new cooperation contracts will take time. Due to the situation, the deadlines of our work may be postponed, which will unfortunately affect new subscribers as well. Elektrilevi will do everything in its power to ensure that the new network connections are completed as quickly as possible. We appeal to our customers’ understanding.”
Elektrilevi does not consider the termination of the contracts by Energo Veritas lawful and has notified the company of the liability, consequences as well as the impact on future cooperation caused by the termination of the contracts.