Government approves 50 percent electricity providers' subsidy
The government approved a support measure which will subsidize electricity network providers 50 percent of their fee. The subsidy covers all electricity consumers, and has been issued in response to soaring electricity prices in recent weeks.
Economic affairs minister Taavi Aas (Center) said that: "The rise in the price of electricity inevitably affects us all, household consumers and businesses alike.
"To ensure that soaring electricity bills do not prove to be an unexpectedly heavy burden on the wallet, the state is supporting all electricity consumers by partly covering the cost of the network service to alleviate the situation," Aas continued, via a press release.
Aas added that in the context of the current global energy crisis, there are no quick fixes to reducing electricity prices.
He said: "Experts say that the situation should stabilize in spring, until then we can deal with putting out the fire, so to speak. In the longer term, to avoid such situations, we need to continue to vigorously develop renewable energy generating capacities here in Estonia so that in the future we no longer have to use expensive fossil fuels," the minister said according to spokespeople.
The subsidy will cost the state over €88 million, it is estimated, and runs retroactively from the start of October, through to the end of March, in other words the cold season.
No action is needed on the part of consumers, the government said, while the funds will be funneled via the Environmental Investment Center (Keskkonnainvesteeringute Keskus).
The measure is separate from one still under discussion, and being developed, though not yet finalized, to be provided to low-income households for not only electricity, but also gas and heating bills.
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Editor: Andrew Whyte