The Competition Authority (Konkurentsiamet) has approved a 10-percent price hike for electricity grid distributor Elektrilevi's connection fee.
Elektrilevi has cited a rise in the cost of its transmission service as provided by electricity and gas supplier Elering, as well as a volatile electricity market and a 0.2-percent rise in the Competition Authority's own fees.
Mihkel Härm, Elektrilevi board chair, said that: "If there is a longer-term stabilization and decrease in electricity prices in the electricity market, Elektrilevi will also review its network charges and lower prices as soon as possible."
Network companies must start paying a supervision fee of 0.2 percent of sales revenue to the Competition Authority following the new regulation, Härm added. "For Elektrilevi, this change will mean a payment of half a million euros this year," he said.
At the end of 2021, Elering announced a 17-percent rise in the price of its transmission service, to kick in from April 1.
This will cost Elektrilevi an additional €12.1 million, the company says.
Overall electricity prices have increased the cost of Elektrilevi's day-to-day electricity operations requirement by 48 percent, the company says.
Elektrilevi says it is looking for solutions to reduce the price price of electricity, one of which may be a tender for the purchase of lost electricity at a fixed price, which renewables firms can bid on.
Soaring electricity prices from last autumn along with similar rises in other energy sectors have led to two main government support packages being issued.
One of these cut the network transmission fee to end consumers by 50 percent, for electricity, ad by 100 percent in the case of natural gas.
The state is reimbursing Elektrilevi and other suppliers for this discount.
Editor: Andrew Whyte