Elektrilevi justifies the price increase by citing increased investment and maintenance needs. Additionally, the company pointed to the overall rise in the costs of labor and materials due to rapid inflation.

Elektrilevi manages and maintains 61,000 kilometers of electrical networks and over 24,000 substations across Estonia. "To ensure a stable electricity connection and supply security for consumers, as well as to swiftly resolve outages, our aging network requires significantly larger annual investments than the current network fee has allowed," said Elektrilevi CEO Mihkel Härm.

The price increase, approved by the Competition Authority, also includes the introduction of a monthly network service fee for all packages that previously did not have one. According to the company, the monthly fee covers the costs necessary for maintaining and upgrading the electrical network. The monthly fee is generally uniform for apartments, while for houses and small businesses, it depends on the size of the fuse at the connection point.

The network fee constitutes about half of an average household's electricity bill.

"Today's tariff includes repair and maintenance costs at the 2021 level, but there has been 37 percent inflation in the meantime. Therefore, it is clear that the cost level in the tariff needed adjustment," Härm added.

Elektrilevi has also started widening line corridors to prevent outages caused by severe weather conditions. The plan is to widen line corridors by approximately 4,200 hectares annually, which will cost over €10 million per year in the coming years.

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