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Eesti Energia Jaotusvõrk (Distribution Network) to become Elektrilevi
Network operator Eesti Energia Jaotusvõrk OÜ will become Elektrilevi OÜ in May, adopting use of a separate brand name. The goal of the change is to distinguish more clearly between Eesti Energia's activities as a power seller on the open market, and the role of network operator, which is a natural monopoly.
When Eesti Energia begins competing against other providers in the field of electricity sales in 2013, the network business will remain a natural monopoly where the price of service is under state control. As there is no economic justification for building more than one power grid in the same location, network operators are natural monopolies everywhere in the world.
The European internal market directive and the draft new version of the Estonian Electricity Markets Act set forth the need to distinguish various areas of activity on the open electricity by way of respective trademarks for the competitive and network business. "As of next year, customers will be able to choose their seller of electricity as in the case of other goods. However, they will not have this choice regarding the power grid that serves their home or business and thus cannot select the network operator. Starting in 2013, the price of electricity will be determined on the power exchange, but the state will continue to approve the price of network service," said Jaotusvõrk director Tarmo Mere in explaining the special nature of the businesses and the need for greater clarity.
Mere added that the name Elektrilevi ("Power Distribution") evokes the objective of the company's activity, which is to deliver electricity, and has a more modern ring in Estonian, referring the more advanced opportunities in use. He said significant changes have already been launched in the name of high-quality network service. "We are establishing underground and overhead lines that are impervious to the elements, installing modern automated equipment into the grid and in just a few years will introduce clever remote-read metering, which does away with the need for customers to report meter readings," he said by way of example of innovations.
The total expenses of introducing the new trademark are around 80,000 euros and the new mark will be rolled out incrementally on Jaotusvõrk vehicles and buildings. Work uniforms and hardhats will be replaced as they reach the end of their life cycle.
The name change will not result in any changes in agreements, company contact information or operations related to network service. The customer service telephone line 1545 will continue to be operational and power outages can still be reported by calling1343. The new business name will be introduced in the second half of May.
When Eesti Energia begins competing against other providers in the field of electricity sales in 2013, the network business will remain a natural monopoly where the price of service is under state control. As there is no economic justification for building more than one power grid in the same location, network operators are natural monopolies everywhere in the world.
The European internal market directive and the draft new version of the Estonian Electricity Markets Act set forth the need to distinguish various areas of activity on the open electricity by way of respective trademarks for the competitive and network business. "As of next year, customers will be able to choose their seller of electricity as in the case of other goods. However, they will not have this choice regarding the power grid that serves their home or business and thus cannot select the network operator. Starting in 2013, the price of electricity will be determined on the power exchange, but the state will continue to approve the price of network service," said Jaotusvõrk director Tarmo Mere in explaining the special nature of the businesses and the need for greater clarity.
Mere added that the name Elektrilevi ("Power Distribution") evokes the objective of the company's activity, which is to deliver electricity, and has a more modern ring in Estonian, referring the more advanced opportunities in use. He said significant changes have already been launched in the name of high-quality network service. "We are establishing underground and overhead lines that are impervious to the elements, installing modern automated equipment into the grid and in just a few years will introduce clever remote-read metering, which does away with the need for customers to report meter readings," he said by way of example of innovations.
The total expenses of introducing the new trademark are around 80,000 euros and the new mark will be rolled out incrementally on Jaotusvõrk vehicles and buildings. Work uniforms and hardhats will be replaced as they reach the end of their life cycle.
The name change will not result in any changes in agreements, company contact information or operations related to network service. The customer service telephone line 1545 will continue to be operational and power outages can still be reported by calling1343. The new business name will be introduced in the second half of May.
