Grid Operator's 8% Rate Hike Approved
The Competition Authority has approved an application by national grid operator Elering to raise electricity network tariffs by almost 8 percent starting from January 1.
The change, which pushes the distribution price from 1.05 cents to 1.13 cents per kilowatt hour, was needed to bring the rate in line with actual expenses, Elering said in an October 3 press release.
The new tariffs will not translate into an 8 percent rise in household electric bills, however, as network fees only make up about a third of what consumers pay. Based on the use of 2,500 kilowatt hours per year, the company estimates that each household will pay 4 euros more next year due to the price hike.
In August, Elering's board chairman Taavi Veskimägi said that the company's costs were set to rise because of investments into construction of an emergency power plant, scheduled to start in 2013, and installation of EstLink 2, an Estonian-Finnish undersea grid connection expected to be ready by 2014.