The Social Democrats are set to present proposals to the government coalition on Thursday to offset the electricity price increase caused by damage to the undersea cable.

Tanel Kiik, who noted that there is substantial discussion within the Social Democratic Party about ways to compensate for the electricity price hike, introduced one such proposal.

"If we see that the damage to the undersea cable results in a further increase in electricity prices, we believe it is reasonable and appropriate for the state to, for example, halve network fees in the first quarter of 2025. This would help mitigate the negative impact of rising electricity prices on consumers," he explained.

According to Kiik, this measure would cost less than €100 million, which could come from the government's reserve or an additional supplementary budget.

"Previously, various energy support measures cost approximately €170 million, of which reducing network fees accounted for around €100 million, but that was over a longer period. Currently, we are likely talking about a shorter period, which would make these costs correspondingly lower," Kiik said.

The Social Democrats' coalition partners have already dismissed the idea outright.

"Energy prices have fluctuated significantly in recent years, so people have had opportunities to manage their risks, sign fixed-price contracts, review their consumption and make investments. People must also take responsibility themselves," said Maris Lauri, deputy chair of the Reform Party.

"The money they want to distribute comes from taxpayers. This means some things will remain undone," she added.

"We do not agree that taxes should be raised even further just to throw money out of a helicopter again. Estonia must certainly address energy poverty, which means we need personalized support for those who genuinely struggle to pay their electricity bills," said Liisa Pakosta, deputy chair of Eesti 200 and minister of justice and digital affairs.

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