The Supreme Court Declared the Amendment to the Electricity Market Act Unconstitutional
Case
Ramon Rask, partner at the law firm RASK, and attorney Kristiina Padu successfully represented the energy company Evecon, achieving a significant victory in the Supreme Court of Estonia. The court ruled that the amendment to the Electricity Market Act, which required network-connected companies to pay a deposit within 60 days, was unconstitutional.
The purpose of the amendment was to accelerate the transition to renewable energy and free up unused grid resources. In practice, however, it imposed an unfair burden on companies, including Evecon, who suddenly faced financial obligations amounting to millions of euros. Additionally, the short deadline did not allow companies to adjust their operations to meet the new requirements.
Ramon Rask noted that such legislative practices undermine the trust of companies and investors, which is particularly critical in the energy sector, where project payback periods are long. According to Rask, it is essential for legislation to be well-considered and based on long-term analysis, avoiding sudden and burdensome changes. The decisions of the Tallinn Administrative Court and the Supreme Court's Constitutional Review Chamber confirmed this.
Evecon is one of the leading renewable energy companies in the Baltics, developing large-scale wind, solar, and battery parks, including the largest solar park in the Baltics and the largest battery park in mainland Europe. The Supreme Court's decision enables the company to focus on implementing its projects under fair and stable regulations.
The purpose of the amendment was to accelerate the transition to renewable energy and free up unused grid resources. In practice, however, it imposed an unfair burden on companies, including Evecon, who suddenly faced financial obligations amounting to millions of euros. Additionally, the short deadline did not allow companies to adjust their operations to meet the new requirements.
Ramon Rask noted that such legislative practices undermine the trust of companies and investors, which is particularly critical in the energy sector, where project payback periods are long. According to Rask, it is essential for legislation to be well-considered and based on long-term analysis, avoiding sudden and burdensome changes. The decisions of the Tallinn Administrative Court and the Supreme Court's Constitutional Review Chamber confirmed this.
Evecon is one of the leading renewable energy companies in the Baltics, developing large-scale wind, solar, and battery parks, including the largest solar park in the Baltics and the largest battery park in mainland Europe. The Supreme Court's decision enables the company to focus on implementing its projects under fair and stable regulations.