Reform Party not behind plans to scrap renewable energy tax

Electricity pylon.
Electricity pylon. Source: Siim Lõvi/ERR

Opposition parties are demanding the state refrain from taxing renewable energy due to higher than usual electricity prices but Reform believes local government should help those in need.

On Tuesday, the Riigikogu discussed the impact of the increase in the price of the CO2 quota. Political parties also proposed measures to alleviate record high electricity prices.

While the coalition has already agreed to cancel the excise duty increase planned for next year, the opposition believes more needs to be done, ETV's "Aktuaalne kaamera" reported on Tuesday.

Isamaa MP Urmas Reinsalu said the additional money from the CO2 quota should be used to abolish the renewable energy tax.

The Social Democrats and EKRE also want to get rid of the renewable energy tax.

Minister of Environment Tõnis Mölder (Center), who is a member of the coalition, said households that need financial help should be supported with CO2 income next year. 

The Reform Party has a different view.

Reform MP Kristen Michal said: "If anyone is having difficulty coping today, they really need to be helped by the local government and the state, respectively."

Energy expert Marko Allikson said the price of electricity has been affected by the rise in gas prices, not CO2. 

He told AK the state can temporarily influence price rises through taxes. This means long-term renewable energy solutions are important as Estonia does not currently produce enough electricity. 

"It is necessary to look at all non-fossil electricity generation opportunities, to understand what nuclear energy offers, to save energy, to develop energy storage and storage technologies. Many components have a role to play in shaping electricity prices at the end of the day," Allikson said.

Electricity is currently produced from expensive fossil fuels, as there is no cheap renewable energy on the market. This has raised the price of electricity to a record high. 


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Editor: Helen Wright

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