Estonian fuel retailer Terminal has formally lodged a complaint with the European Commission, accusing the state of providing illegal state aid to competitor Olerex. The complaint alleges that Olerex has benefited from an exemption from mandatory biofuel compliance, saving an estimated €35 million annually. Additionally, the lack of enforcement on €20 million in penalties raises significant concerns over regulatory fairness and market competition.
Between 2021 and 2023, Estonian authorities failed to enforce key environmental regulations, citing procedural obstacles. Terminal argues that this leniency has unfairly benefited Olerex, creating a competitive advantage and undermining EU objectives for renewable energy in the transportation sector.
The complaint also underscores the critical role of state authorities, including the Estonian Environmental Board and the Tax and Customs Board, in ensuring uniform enforcement of biofuel obligations. Terminal claims the selective application of these requirements has distorted the competitive landscape in Estonia's fuel retail industry.
This case carries broader implications for Estonia's alignment with EU renewable energy targets. Terminal asserts that the government's lax approach to biofuel regulations has not only hindered fair market practices but may have also impacted fuel pricing for certain consumer segments.
The situation highlights the need for consistent regulatory enforcement to prevent market distortion and ensure compliance with environmental standards in the fuel retail market.
