Electricity to domestic consumers with contracts with state-owned generator Eesti Energia will cost 19.24 cents per kilowatt-hour from October 1, the company says, following an announcement of the base price by the Competition Authority Friday morning.
This price is inclusive of VAT but exclusive of the government's energy support measure put in palce for domestic consumers October to March inclusive, while Eesti Energia will also add a monthly fee of €1.99 to bills.
The news follows Friday morning's announcement from the Competition Authority, responsible for setting the universal price following negotiations with Eesti Energia, that the level would be 15.4 cents per Kwh.
Eesti Energia, when calculating bills, adds to that its costs, risks and reasonable profit (0.63 cents per Kwh) and VAT at 20 percent (3.21 cents per Kwh).*
Finally, the energy compensation measure outlined above is applied, from October 1 to March 31 next year inclusive, which will bring an overall price to consumer of 13.24 cents per Kwh.
This figure includes network connection fee, renewable energy fee and any other charges.
While Eesti Energia supplies many households, other suppliers are on the market.
Alexela stated that it will be adding detailed information to its customers on Monday, October 3, adding its universal service price will be 19.19 cents per Kwh, plus a €1.99 monthly fee.
Friday's announcement was accompanied by a statement that the price level was temporary; negotiations with Eesti Energia subsidiary Enefit Power are still ongoing, while the company's director, Andres Vainola, says a price of 18.18 cents per Kwh is its target, with an agreement expected by November latest.
An electricity seller who is a universal service provider has the obligation to offer the service to a domestic consumer if the consumer's current electricity package is more expensive than the price of the universal service.
The consumer also has the right to withdraw from that package without incurring a penalty.
Customers whose current package is more expensive will be switched to the new service automatically, ERR reports, while they can also opt out of the universal service for whatever reason, if they wish.
Private individuals also have the opportunity to go to an Omniva post office in person to submit a request to set-up the Eesti Energia universal service contract, to check it or to opt out of automatic transfer.
This option is available from Monday, Ominva said via a press release, while Eesti Energia spokesperson Dajana Tiitsaare said the option is available for those who have questions about the service and how to take advantage of it, which can be answered at the post office.
The opportunity also suits those who are unable to access online environments or who are unsure about how to use them, and is also open to private customers, who should bring their Estonian ID card with them to the Omniva outlet.
Omniva's site is here.
The universal service, i.e. electricity at a set price, will be in place to the end of April 202t as things stand.
Editor: Andrew Whyte