1. Stakeholders view on ETR in Estonia Tõnis Meriste Environmental Manager Ph+3727152350, Fax+3727152200, GSM+3725158153 tonis.meriste@energia.ee Tallinn, 11.04.2006

2. Eesti Energia AS Eesti Energia was first founded in 1939 Eesti Energia AS as joint stock company was established in April 1998 on the basis of the former state enterprise 100% of stocks owned by the Estonian Government Eesti Energia AS is the only power company in the world that gets its baseload for the heat ant electricity production from domestic fuel oil-shale fired power plants Eesti Energia AS is the largest employer in Estonia employing 9284 people today

3. Eesti Energia AS The vision of Eesti Energia AS is to be the the leader of the Baltic market for electricity and thermal power The mission of Eesti Energia AS is to provide customers with reliable and convinient energy supply solutions Eesti Energia AS generates ca 95% of electric power produced in Estonia: Eesti PP (1615 MW e, 84 MW th ), Balti PP (1090 MW e,505 MW th ), Ahtme PP (30 MW e,335 MW th ), Iru PP (190 MW e, 648 MW th ), small renewable units (HPP)

4. Eesti Energia AS Eesti Energia AS is also responsible for the considerable “contribution” to the Estonian total pollution loads and resource use Eesti Energia AS is due to the previously mentioned facts also the biggest environmental tax payer in Estonia (in 2005 ca 440 MEEK) and at the same time biggest investor (yearly at least 300-400 MEEK) to environemental matters. Taking account of the gradually liberalization of the energy (electricity) market in Estonia, Eesti Energia AS wants/needs to be involved in the preparation and implementation of ETR! Narva Power Plants had untill the end of 2005 a Free Will Agreement with MoE to support involvment in legislative activities and information exchange.

5. Eesti Energia AS and ETR Eesti Energia AS supports ETR as an idea. We also consider very important, that in the preparation of strategic documents concerning taxation, use of natural resources, pollution limitation and prevention, use of international financial aid etc. all relevant Stakeholders should be involved. Eesti Energia AS experience in the involvment in the ETR preparation and implementation process was POOR!

6. Eesti Energia AS and ETR ETR strategic documents reached to Eesti Energia AS mostly through Ministery of Economy and Transportation and not Ministry of Environment. EE AS was not included to any workgroup etc. and there was only few information about the status of ETR strategic documents. There was too few time to prepare any relevant comments! ETR Workshop in spring 2005 was fruitfull possibility to exchange views, but didn’t gave any detailed information about the instruments to fullfill the ETR.

7. Eesti Energia AS and ETR With new Environmental Tax Law was the situation same. Most relevant and updated information came through the Ministry of Economy and Communication. Firstly the new tax rates was proposed without economic calculations and influence analysis to other sectors. Straight meeting and discussions started only after the tax rates were already fixed. Those meetings were still important to make some technical changes in law to make the inforcement possible. Allmost not one of EE AS proposed wordings and clarifications were taken into the Law text and there was no feedback about the status of our proposals.

8. Eesti Energia AS and ETR Conclusions: All interested Stakeholders should be himself very (extreemly) active in such processes. Biggest problem today is the availability of relevant and updated fresh information about the status of processes Almost always the preparation of important strategic documents are in hurry, which leaves too few time for the comments and modification proposals. But even on the light of experineces from the past and present EE AS still belives that the situation must and will change and that ALL RELEVANT STAKEHOLDERS will be in the future more deeply involved to the preparation and implementation of strategic documents

9. Thank You for Your Attention!