On 1 May, 2007, Estonia’s new Public Procurement Act (PPA) entered into force. Utility services and traditional sectors are regulated by the PPA which replaced the earlier law from 2000. The law is supplemented by various government decrees.

The PPA was adopted in order to bring the Estonian public procurement legislation into line with the European Union directives on public procurement, which entered into force in 2004 with the Utilities Directive and Public Sector Directive.