Government approves €88-million electricity network subsidy package

Stenbock House in Tallinn, seat of the Estonian government.
Stenbock House in Tallinn, seat of the Estonian government. Source: Kaupo Kalda/ Stenbock House

The government approved Thursday an order to provide a €88.25 million subsidy to electricity network providers. The measure is one of two already given the go-ahead and aimed at combating record energy prices experienced this fall and as winter approaches.

The compensation covers 50 percent of consumers' network fee and enables discounts without the suppliers losing out. The funds will be channeled from the government's reserve to the Ministry of Economic Affairs and Communications.

The program runs retroactively from the beginning of October to the end of March 2022, i.e. the coldest months of the year.

The measure is to be implemented on the basis of a management contract drawn up by the Environmental Investment Center (KIK).

A separate government measure will provide support to low-income households, while the possibility of reducing VAT on energy costs is being discussed; it is supported at present by the Center Party and also some of the opposition parties, but not by Center's coalition partner, Reform.

Electricity prices reached record highs around a month ago, at a time when natural gas and vehicle fuels have been doing the same.


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Editor: Andrew Whyte

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