Energy, Energy Market, Estonia, Financial Services, Markets and Companies

In connection with the introduction of the new formula the company wants to cut the average network fee by 6.7% from July 1, it appears from an application filed by Elektrilevi with the competition authority.

Besides, the company wants to introduce a permanent fee at consumption points where no electricity has been consumed during the past year or the amount consumed during 12 months is smaller than 250 kilowatt-hours.

The size of the standing component will be based on 2017 and depend on the main circuit breaker capacity. The size of the standing component is expected to range from 2 to 5 euros.

The purpose of the introduction of the standby fee is to keep the price affordable also in the long term. There are at present about 57,000 consumption points in the Elektrilevi network area where effectively no electricity has been consumed during several years but where Elektrilevi is obliged under valid agreements to ensure readiness of electricity supply.

With the kilowatt-based pricing arrangement, Elektrilevi earns no income from such consumers whereas it has to incur the costs related to maintaining the readiness of the network.

The eventual prices and the dates they will take effect depend on regulatory approval. If the new prices are to take effect from July, the price list must be endorsed and published at least three months prior to the effective date, or by April at the latest.

The cut in prices will have the biggest effect on corporate consumers, for whom the average price will drop by approximately 8%. Pricing for businesses will change in such way that the price of the service will depend more on the number of network connections and their capacity.