Finance minister: Energy subsidy eligibility limit will be €1,052

Keit Pentus-Rosimannus.
Keit Pentus-Rosimannus. Source: ERR

Families with an income of €1,052 or less will be eligible for subsidies to help pay soaring energy bills, Minister of Finance Keit Pentus-Rosimannus (Reform) said on Thursday.

The subsidy will be calculated on a family's income from 2020, Pentus-Rosimannus told ETV's "Aktuaalne kaamera" evening news show. The compensation applies to electricity, gas and district heating bills. 

"We have a consensus on targeted and rapid relief for those families whose income is lower than last year's median wage, meaning that it amounts to less than €1,052 per month combined. And this relief concerns the price of electricity, concerns the partial relief or compensation of the soaring prices of district heating and also gas," Pentus-Rosimannus said. 

Prime Minister Kaja Kallas (Reform) said at the government's press conference on Thursday that if the eligibility limit were to be raised to the level of the median wage, nearly 320,000 families, or approximately 600,000 people in total, would qualify.

The measure would cost the government an estimated €65 million. 

Minister of Public Administration Jaak Aab (Center) said the costs of the measure could be covered with bigger-than-expected revenue from carbon dioxide quota sales, even if the qualification threshold is raised. The projected surplus this year is €50 million.

Aab said it is possible also to use next year's surplus if necessary, without having to prepare a supplementary state budget.


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Editor: Helen Wright

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