The state has begun reimbursing network charges

15. November 2021 | 18:08

The Environmental Investment Centre (EIC) has begun compensating network operators for costs in order to mitigate the increase in electricity prices for final consumers. In order to receive the compensation, the network operator must submit a duly completed application to the EIC. Consumers do not have to do anything to receive the support – the reduction of the network fee by half is reflected in their monthly electricity bills.

‘Unfortunately, the global energy crisis will not leave the Estonian people and businesses untouched; however, the partial compensation of the network fee by the state until spring will give consumers some relief in paying their electricity bills. Fast and flexible cooperation with the EIC and network operators has made it possible to already issue lower bills for consumption in October,’ said Minister of Economic Affairs and Infrastructure Taavi Aas.

‘This is certainly a worthwhile support measure, one that affects all Estonian consumers at the same time,’ said Andrus Treier, Head of the EIC. ‘The Ministry of Economic Affairs and Communications entrusted the development of this time-critical support to the EIC. As a result of our swift action, we are now ready to receive applications from network operators,’ he adds.

From 1 October 2021 to 31 March 2022, the network operator will be compensated for the loss of revenue from the supply of network services to consumers and the VAT due on those services. The total budget foreseen for the support is EUR 88.25 million. Fifty per cent of the cost of the network service provided to consumers (normal distribution or transmission tariff plus excise duty, renewable energy fee and VAT) will be compensated. Support is only granted to licensed network operators within the meaning of the Electricity Market Act. The reimbursed amount may not exceed the amount charged to the consumer for the same period.

By the 14th day of the month, at the latest, the network operator must submit a statement to the EIC covering the amounts of the consumers for the previous calendar month. The EIC will make a funding decision within ten working days of receiving the application. For further instructions and an application form see the EIC website here. The support will be distributed in accordance with the Regulation ‘Conditions and Procedure for Partial Compensation of the Final Electricity Price’.

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