Reserve charge will be added to gas bills May 1

The Estonian end of the Balticconnector gas pipeline in Paldiski.
The Estonian end of the Balticconnector gas pipeline in Paldiski. Source: Siim Lõvi/ERR

The state will begin collecting a reserve charge of 40 cents per megawatt-hour of natural gas on May 1, to fund the storage and maintenance of national gas stocks.

The Estonian Stockpiling Agency's (AS Eesti Varude Keskus or ESPA) bought a six-terawatt-hour strategic natural gas reserve at the Inculkans underground gas storage facility in Latvia to ensure gas supplies in the case of supply interruptions.

On May 1, this year, a reserve charge of 40 cents per megawatt-hour, exclusive of VAT, will go into force per the new legislation. For instance, if a household spends €200 per month on gas and uses 2.5 megawatt-hours, the consumer will be charged an additional €1.

The network operator will apply the fee to the bill for network service and then pays with it the storage facility. The fee stated on the consumer's bill is proportional to the volume of usage and is calculated by the storage center to account for around 0.5 percent of the total gas bill.

Among the costs connected with strategic gas reserve management are the costs associated with storing and protecting gas reserves.

According to AS Elering, Estonia's gas consumption in 2022 was 3.78 terawatt-hours. The estimated usage for this year is 3,74 terawatt-hours.


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Editor: Barbara Oja, Kristina Kersa

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