Estonia's utility companies are increasing their security and plan to move pipelines underground, develop drone defenses, and improve cybersecurity. The costs are likely to be reflected in customers' bills.
About 300 companies in Estonia must be able to keep operating during a crisis or war, including water, heating, electricity, and gas companies. Russia's invasion of Ukraine has placed new expectations on these entities.
Aare Palmsalu, head of water company AS Rakvere Vesi, told ERR that water companies are currently focusing primarily on cybersecurity, although some have also purchased helmets and bulletproof vests.
"Investments have been made for years to mitigate the damage caused by power outages. Backup generators have been purchased, action plans developed and fuel stockpiled. These investments have been made and are already included in the price of water. But we have not yet started building actual [concrete] sarcophagi around pumping stations, and we do not know whether we ever will or whether that would even make sense," Palmsalu said.
Vadim Nogtev, development manager at SW Energia, which operates nearly 60 district heating networks, said the company has so far focused on preventing disruptions to electricity, communications and water supplies. Drone defense and physical protection are likely to be next, but exactly what this should look like remains unclear.
"The general position of district heating companies is that we should be producing heat, while people who know how should deal with drone defense. This could also take the form of cooperation in which the Defense Forces map out critical service facilities and at least help us repel drones if the need arises," Nogtev explained.
Providers of vital services must largely determine for themselves which specific investments to make. The Government Office told ERR that, for example, cities and municipalities should supervise water and heating companies.
The Competition Authority has been monitoring the situation.
The regulator has seen that water companies are investing in cybersecurity, and heating companies plan to invest in drone defense, move pipelines underground, and build structures around boiler plants and emergency generators.
Competition Authority Director General Evelin Pärn-Lee said if a company can provide sufficient justification for a security-related expense, it can be included in customers' bills. But determining a fair price can be difficult.
"I'll give a simple example: if the question is whether to encase a substation in concrete, effectively creating a sarcophagus, or simply stack concrete blocks around it, we ourselves cannot assess which is the best approach. But I would venture to say that there is nevertheless a difference in price," she said.
Pärn-Lee acknowledged that an even greater concern is water, gas and heating companies that are not preparing for a crisis or war at all.
"I rather get the impression that Estonia's providers of vital services have not yet reached the point where they can even imagine what investments they should make to ensure security of supply if the security situation deteriorates," she said.
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