Currently, each household electricity contract in Estonia is linked to a specific metering point, and each metering point is connected to a single connection point. Simply put, this means that the electricity supplied to my home is measured by a single meter, which records the total amount of electricity consumed in my household. I then pay for this electricity according to the contract I have signed with a single supplier.

Under the European Union's electricity market design directive, all consumers must be given the option to sign more than one electricity contract at the same time by the summer of 2026. As a result, a household could have more than one metering point. How exactly this change will be incorporated into Estonian law is not yet clear, as the details will be discussed with market participants this summer, said Karin Maria Lehtmets, head of the energy markets division at the Ministry of Climate's energy department.

"So far, the approach has been that one metering point is linked to a single connection point. We are already making some changes to this with a previous bill, which is currently in its second reading in the Riigikogu, and which aims to eliminate double taxation for energy storage," Lehtmets explained.

This amendment affects households that generate their own electricity, for example, with solar panels. Under the bill, they would no longer have to pay network fees on the electricity they feed back into the grid, as these fees would only apply to consumption. Currently, in such households, consumption, generation and storage are all recorded under a single metering point, making it impossible to distinguish the amount of stored energy. To qualify for the network fee exemption, a separate metering point must be created for stored electricity.

Consumer will not be able to opt for more favorable price on the fly

If the planned amendment takes effect next year, allowing electricity consumers to have multiple metering points, it would theoretically enable them to sign different types of contracts — such as one with a fixed price and another tied to the market price. This aligns with the EU directive's goal of giving consumers greater control over electricity costs and better management of their consumption.

However, Eesti Energia has already raised concerns with the Ministry of Climate, pointing out that if customers can switch between different metering points for their consumption, electricity suppliers would face challenges in predicting usage patterns. Without a clear forecast, it would be difficult to determine where and how much electricity is being consumed.

Lehtmets dismissed these concerns as unfounded, emphasizing that the specific details of the reform are still being discussed and that such real-time switching between metering points would not be permitted.

"If multiple metering points are allowed, the system must be technically designed so that consumers cannot later decide where they are drawing power from at any given moment. That is not part of our plan, nor is it the intent of the directive. Each metering point will correspond to specific consumption units, and these will not be interchangeable," Lehtmets explained.

Additionally, the change will create new opportunities for apartment associations, which currently purchase electricity collectively, preventing individual apartment owners from signing separate electricity contracts. If multiple metering points can be established alongside the existing collective one, residents would gain the ability to purchase electricity independently from the rest of the building. However, it is important to note that the cost of setting up a new metering point would be covered by the consumer, even though the request for installation must go through the grid operator, Elering.

Electricity sharing to become a possibility

One significant change for apartment associations will take effect this summer, allowing energy to be shared within the association, Lehtmets explained. For example, if an association has installed solar panels on its roof, its members will be able to use the electricity generated without additional fees. This kind of electricity-sharing option will be expanded even further in the future.

"For instance, imagine a consumer who has a summer house in Võru County with solar panels on the roof. With electricity sharing, they could use the electricity produced there to power their apartment in Tallinn or even sell it to a friend living in Rakvere. The idea is to enable direct electricity sharing between end consumers and producers," Lehtmets described.

The Ministry of Climate will discuss the technical implementation of this system with market participants this summer, as the EU directive must be transposed into national law by the summer of 2026.

Risk management to protect consumers

One of the more complex issues — one that Eesti Energia opposes — is included in a draft bill currently undergoing a consultation round. This bill transposes the part of the EU electricity market design directive that requires electricity suppliers to implement risk-hedging strategies to protect consumers from sudden price spikes in fixed-term contracts.

This means that before an electricity supplier can offer a fixed-price contract to a customer, they must first ensure they can purchase electricity at that price. One way to hedge risks is by signing direct bilateral agreements with producers. Another option is to use financial instruments available on the market.

"When preparing this bill, we conducted a market analysis and asked electricity suppliers how much they currently use risk-hedging options. The results were actually very positive," said Lehtmets. "In fact, hedging was used even more extensively than the number of fixed-price packages offered would suggest. Based on this, it appears that this change will not significantly impact Estonia's electricity market — our suppliers have already been responsible and do not offer fixed-price packages without coverage."

A few years ago, during the electricity price crisis, some European countries faced serious issues when suppliers offered fixed-price packages to consumers while purchasing electricity at fluctuating market prices. When prices spiked, these companies could no longer maintain the previously agreed lower rates and went bankrupt. Now, the EU wants to require suppliers to hedge their risks to protect consumers from similar situations. Additionally, Estonia's Competition Authority will gain the right to verify whether electricity suppliers are using risk-hedging strategies in proportion to the fixed-price packages they offer.

Eesti Energia has pointed out that the financial instruments Lehtmets mentioned are becoming scarcer in the market, limiting suppliers' ability to hedge price risks and, consequently, their capacity to offer fixed-price contracts. The company also argues that risk management will become even more complicated if, in the future, a single household can have multiple metering points and multiple contracts. If consumers are allowed to switch between them at will, suppliers will no longer be able to predict electricity consumption — an essential factor in managing risks for fixed-price packages.

Eesti Energia declined to be interviewed for this story. The company's views were taken from its comments on the Ministry of Climate's draft bill.

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