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Share of network fee will rise, renewable energy charge decline this year

Estonian news - etea January 2, 2013

Baltic News Service, 02.01.2013

Although the renewable energy charge component of Estonian consumers’ electricity bills will decrease by a tenth this year, in addition to the higher per-kWh price of electricity also a 3-12 percent rise in network fees will contribute to a rise in monthly bills.

According to the calculations of the national transmission system operator Elering, the renewable energy charge this year will be 0.87 cents per kilowatt-hour, which is 10 percent less than the year before. The distribution network operator Elektrilevi estimates that the new renewable energy charge rate will reduce the monthly bill of an average household consumer who uses 2,700 kWh of electricity a year by 27 cents.

On the other hand, the rise of network fees of Elektrilevi by an average 7 percent or 0.25 cents per kWh translates into a one euro increase in the monthly bills of average consumers.

Imatra Elekter will raise network fees by 3.18 percent on the average this year, which will add 30 cents a month to the average electricity bill.

The network fee rates of VKG Elektrivorgud will go up by an average 11.8 percent. The company estimates that the hike will raise the monthly network fee of an average household consumer who consumes 200 kWh of electricity a month, by 1.26 euros.

The price of electricity for the end consumer consists of three components: the price of electric energy, the price of the network service, and the renewable energy charge and the electricity excise.

The per-kWh price of electricity will rise the most after the deregulation of the power market on January 1, by more than 50 percent.

 

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