Minister floats network‑fee compensation to ease winter power costs

The government is considering options for how to ease the impact of high energy prices on consumers this coming winter. The simplest measure would be compensating the network fee, says Minister of Energy Erkki Keldo.
Keldo (Reform Party) said the government received an overview on Thursday of global gas prices, electricity price forecasts, and the possibilities Estonia has to offer more price stability.
Keldo stressed that Estonia cannot influence the global gas price in any way. The final price of electricity, however, does not consist only of energy — it also includes various fees, and one of the easiest and least bureaucratic areas to intervene in, according to Keldo, is the network fee, which makes up a considerable share of the end‑consumer price.
"One option we could compensate is, for example, the network fee," Keldo pointed out.
The minister said it is not yet known what the electricity price will be this winter, but it is wise to be prepared for different scenarios. A possible decision to ease the network fee also requires communication with the Competition Authority, and electricity sellers must be able to make technical preparations. For this reason, Keldo considered it sensible to present this measure to the government early enough as one possible option.
Keldo declined to say at what price level the threshold would be where the government should decide that some step must be taken.
"If I were to name a specific price, that would already be speculation," Keldo noted, agreeing with energy‑market participants who say the state should be able to help those who need assistance the most.
"But on the other hand, we must ensure that we do not interfere with the normal functioning of the market — meaning the government's task is to find a balance. For that, we are making the necessary calculations, such as what it would mean to compensate fifty percent of the network fee: how much it would cost the state budget, how much network operators could reduce it," Keldo explained.
In the end, however, Keldo said it must be understood that this money comes, one way or another, from the consumer or taxpayer.
To those who consider network fees an unnecessary burden on people, Keldo reminded that they are intended to ensure energy security and supply reliability.
"We want electricity to be available in every region of Estonia. All these network fees go toward strengthening the electricity grid and making investments. They do not go anywhere else. We must also understand that this fee is charged so that we have continuous security and high‑quality networks across Estonia," the minister explained.
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Editor: Mirjam Mäekivi, Argo Ideon
Source: ERR interview by Martha-Beryl Grauberg












