DSO Elektrilevi to sharply hike the price of connecting to the network
Estonian electricity distribution network operator Elektrilevi will sharply increase the network connection fee starting September 1, citing the depletion of the electricity grid's capacity and changing consumption habits, which will require a significantly more powerful grid in the future.
"To enable continued connections to the electricity grid, starting September 1, 2024, Elektrilevi will increase the ampere-based fee for low-voltage connections within a designated area – up to 400 meters from a substation – from the current €226.23 to €331.15 per ampere, excluding VAT," the company announced.
For connections located more than 400 meters from a substation, the fee will continue to be based on actual costs.
This change will not affect customers who have submitted connection applications before September 1, nor those whose connections are already in progress or awaiting a contract offer.
"The capacity of Estonia's electricity grid is nearing its limit, and changing consumption habits will require a significantly more powerful grid in the future. The current methodology for network fees and connection pricing no longer allows Elektrilevi to make the necessary investments to support new connections on the desired scale," Elektrilevi stated.
The company added that an analysis of connection services shows that the current ampere fee has not covered the justified costs of connection investments for contracts completed last year or this year.
"Elektrilevi has also outlined solutions in its development plan, which, if the current methodology for calculating network fees is adjusted, would allow Elektrilevi to continue developing the grid while the connection customer would only bear the costs associated with constructing the specific connection point. In such a scenario, Elektrilevi could keep the ampere price at a low level. We are working with the Ministry of Climate and the Competition Authority to explore options for reforming the current methodology, thereby improving access to connections," explained Ardi Ratassepp, a member of Elektrilevi's management board.
"To ensure the provision of network services, continuous investment in the electricity grid is necessary. Without changing the ampere price, Elektrilevi would be unable to fulfill its legally mandated development obligations, as the current methodology does not provide sufficient funds to meet the development obligations related to connections," Ratassepp added.
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Editor: Marcus Turovski
