Energy, Estonia, Investments
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Saturday, 27.04.2024, 05:32
Estonian Elering’s investments could significantly raise network charges
BC, Tallinn, 27.11.2015.
Print version
Print versionIf the transmission system operator Elering invested 20 million euros annually over the next decade, network charges would rise by 10.3% at real prices, it appears from an analysis of the impact of investments on network fees carried out by the Estonian Competition Authority, informs LETA.
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The price of capital influences very significantly network charges of capital-intensive enterprises like Elering, the competition watchdog noted in the report.
If the company invested 20 million euros a year in accordance with minimum investment plan, network charges in 2025 would be 10.3% higher than now at real prices. With annual investments totaling 33 million euros, network charges would rise 23.8%.
The actual price rise however would be considerably smaller, as it would be evened out by a sharp drop in 2019 connected with full depreciation of fixed assets obtained before 2003.
A 1% rise in the price of capital would spell a price rise of 7.8% for consumers.
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