The Competition Authority (Konkurentsiamet) has approved a 10% price hike for electricity grid distributor Elektrilevi’s connection fee.
Elektrilevi has cited a rise in the cost of its transmission service as provided by electricity and gas supplier Elering, as well as a volatile electricity market and a 0.2% rise in the Competition Authority’s own fees.
Mihkel Harm, Elektrilevi board chairman, said: “If there is a longer-term stabilization and decrease in electricity prices in the electricity market, Elektrilevi will also review its network charges and lower prices as soon as possible.”
Network companies must start paying a supervision fee of 0.2 % of sales revenue to the Competition Authority following the new regulation, Harm added.
“For Elektrilevi, this change will mean a payment of half a million euros this year,” he said.
At the end of 2021, Elering announced a 17% rise in the price of its transmission service, to kick in from April 1. This will cost Elektrilevi an additional EUR 12.1 million, the company says.
Overall electricity prices have increased the cost of Elektrilevi’s day-to-day electricity operations requirement by 48%, the company says.
Elektrilevi says it is looking for solutions to reduce the price of electricity, one of which may be a tender for the purchase of lost electricity at a fixed price, which renewables firms can bid on.
Soaring electricity prices from last autumn along with similar rises in other energy sectors have led to two main government support packages being issued.
One of these cut the network transmission fee to end consumers by 50% for electricity and by 100% in the case of natural gas.
The state is reimbursing Elektrilevi and other suppliers for this discount. (ERR/Business World Magazine)
