Some higher energy-consuming businesses say that this temporary fall in price is not enough to restore competitiveness, however.

Estlink 2, which resumed operation around midsummer, had been offline since Christmas time, when it was damaged by a Russian shadow fleet vessel's anchor. Its return brought Estonia's electricity price significantly closer to, and sometimes below, that of Finland.

Marko Allikson, board member of traders Baltic Energy Partners, said: "The return of Estlink 2 to the market has helped keep electricity prices this low. Around midsummer, Estlink 2 resumed operation and that has brought our prices much closer to Finland's. The summer has also had very changeable weather, with a lot of wind, and that has been the second major factor keeping electricity prices down."

Sander Randver, board member of Eesti Energia subsidiary Enefit, said: "Across the Baltics, a considerable amount of renewable energy production capacity has been added. For example, the Sopi-Tootsi wind farm is operating at full capacity and several new parks have entered the market in Lithuania. Renewable energy production has increased significantly and continues to grow each year."

The price differential works with regard to Estonia's neighbors to the south, too: Electricity connections with Latvia are currently at reduced capacity due to maintenance work, which makes Estonia's electricity price lower than either there or in Lithuania.

The new lower prices may bring some relief to major electricity consumers, though various surcharges still leave them in a tougher position compared with the competition, they say.

Meelis Kuzma, CEO of Estonian Cell, a pulp miller, said: "At the end of June, hourly and daily prices on the electricity market indeed dropped significantly, but that doesn't solve the problem of the final electricity price, which still isn't competitive in Estonia and causes major concern for energy-intensive industry."

"Even if we have the same price as Finland for a short time, a comparable consumer in Finland pays two million euros less per year in renewable energy fees than we do," he added.

In any case electricity prices in Estonia may rise again at the end of summer.

Randver said: "In the next month or two, low prices will likely persist, but a slight price increase is expected in late August–September, and in winter we're talking about roughly the same magnitude as last winter."

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