Chancellor of Justice Suggests Review of Green Energy Subsidies

Wind turbines on the Pakri Peninsula Photo: Postimees/Scanpix
6/20/2014 1:28 PM
Category: Economy

Chancellor of Justice Indrek Teder recommends a review of green energy subsidies, as currently customers may be forced to pay excessive rates to fund producers of renewable energy.

In his analysis presented to Urve Palo, the Minister of Economic Affairs, Teder suggested reviewing the subsidies in connection to the amount of green energy produced, uudised.err.ee reported today.

He made the analysis after receiving inquiries on whether the current subsidies system is constitutional - currently, the consumers fund the subsidies through network operators, at a rate decided by the transmission network operator.

While Teder found the system not in conflict with the Constitution, he suggested streamlining regulation on which companies are entitled to subsidies and in which amounts. According to Teder, the main issue is whether the rates are decided by a private company or the state.

Teder suggested the rates should be reviewed and updated in accordance with the changes that have taken place on the energy market since the rates were first imposed, as the current system entails a risk of exessive rates that are not in line with the aims of establishing the rates.

Rein Vaks, the head of the energy department at the Ministry of Economic Affairs, told uudised.err.ee that the suggestions are relevant and the considerations have already been included in a new scheme, currently under review at the European Commission.


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