Under a proposal from the Ministry of Economic Affairs and Communications (MKM), companies with annual electricity consumption exceeding one gigawatt-hour (1 GWh) would be eligible to pay a reduced renewable energy fee in the future, MKM's head of the entrepreneurship department, Marie Allikmaa, told ERR.

According to Elering, Estonia's electricity and gas system operator, customers with annual electricity consumption above one gigawatt-hour account for roughly half of the country's total annual electricity usage.

Allikmaa emphasized that the scheme would apply only to large industrial consumers that implement energy management systems ensuring efficient energy use. "It wouldn't be right to use differentiated fee rates to encourage electricity waste," she noted.

One way to demonstrate that an energy management system guarantees efficient energy use is to certify it in compliance with the ISO 50001 standard, MKM spokesperson Riina Soobik explained.

Allikmaa added that introducing lower renewable energy fees would still require state aid approval from the European Commission, as well as amendments to the Electricity Market Act. "EU regulations require that consumers receiving such discounts must pay at least 20 percent of the maximum fee rate, meaning the total reduction can be no more than 80 percent," she explained.

Elering's data shows that there are about 800 clients in Estonia with annual electricity consumption exceeding one gigawatt-hour. Of these, around 100 consume more than 10 GWh, another 100 fall in the 5-10 GWh range, while the remaining approximately 600 customers consume between 1 and 5 GWh annually.

Allikmaa acknowledged that a more favorable rate for industrial consumers would result in a slight increase in costs for regular household consumers. However, she assured that the impact would be minor.

"For a household consuming 250 kWh per month — which is relatively high — the monthly electricity bill would increase by about 25 cents over the next few years due to the differentiated rate. Meanwhile, a company with annual consumption of seven gigawatt-hours, such as a wood or dairy industry business, could see a reduction of about €7,700. For a large company consuming 50 GWh annually, the savings could amount to €55,000. These are significant sums that could be directed toward further investments," Allikmaa explained.

Regarding the renewable energy fee, Allikmaa stressed the importance of maintaining and attracting industrial consumers to Estonia. "The more consumers we have, the more favorable the price becomes for everyone. The cost of electricity is a key factor in investment decisions and these investments can create well-paying jobs and generate demand for new services outside major cities," she added.

Last week, the government discussed various measures to alleviate energy costs. Prime Minister Kristen Michal (Reform) noted that proposals include a €100 million investment in Eesti Energia to build a gas power plant in Narva, bringing the Kiisa emergency power plant to market and compensating renewable energy fees for businesses.

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