The purpose of risk-hedging instruments — in this case, long-term transmission rights — is to enable market participants to reduce risks related to regional price differences at the border of the Estonia–Latvia bidding zone.

Any restriction on these instruments must be in accordance with EU law, the Competition Authority said.

The agency said Elering has unjustifiably restricted the use of these instruments, citing the need to maintain the normal state of the electricity system, even though such justification is not permitted under EU rules.

The authority has previously drawn Elering's attention to the issue, but the company continued to impose the restriction based on the same clause.

The precept obliges Elering to bring its operations into compliance with EU requirements. The order must be fulfilled by December 1.

The Competition Authority conducts state supervision in the fields of competition, electricity, natural gas, district heating, postal services, public water supply and sewerage, railways, aviation, and ports, and works to prevent unfair trading practices in the agricultural and food supply chain.

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