Keldo proposes grid fee relief to ease winter electricity costs

Estonia is considering ways to soften the impact of high energy prices this winter, with compensation for electricity grid fees among the options, Energy and Environment Minister Erkki Keldo said, ERR reported.

Speaking on ETV’s Terevisioon programme, Keldo said the government had reviewed global gas prices, electricity price forecasts and options for improving price stability in Estonia. The country cannot influence global gas prices, he said, but the final electricity bill also includes charges beyond the cost of energy. Grid fees make up a substantial share of the bill and would be one of the simplest charges for the government to address.

The winter electricity price is not yet known, Keldo said, so the government should prepare for different scenarios. Any decision to provide grid fee relief would require consultation with the Competition Authority and technical preparations by electricity sellers. Keldo said he had raised the option early so it could be considered by the government in good time.

He declined to name a price level that would trigger government action, saying that doing so would amount to speculation. Keldo said the state should be able to help those most in need, while avoiding unnecessary interference in the normal functioning of the market.

The government is calculating what different forms of support could cost. One scenario under consideration is compensating 50% of grid fees, Keldo said, adding that the calculations would also assess how much network companies could reduce the fees. Ultimately, he said, the cost would be borne by consumers or taxpayers in one way or another.

Keldo said grid fees fund investments to strengthen electricity networks and support energy security and reliable supply across Estonia.