What happened
Estonia's government is exploring ways to mitigate the impact of high energy prices on consumers this winter. Minister of Energy Erkki Keldo suggests that compensating the network fee could be a viable option. The network fee is a significant component of the final electricity price and is used to ensure energy security and supply reliability.
Keldo notes that the government cannot influence global gas prices, but it can intervene in the network fee, which is a less bureaucratic area to address. The minister emphasizes that any decision to ease the network fee would require communication with the Competition Authority and technical preparations by electricity sellers.
The government is considering various scenarios and calculating the potential costs of compensating the network fee, including the impact on the state budget. Keldo stresses that the money for such compensation would ultimately come from consumers or taxpayers.
The minister also highlights the importance of network fees in maintaining energy security and supply reliability, stating that they are used to strengthen the electricity grid and make investments.
