Energy cost compensation package
Following the sharp energy price increase which began in the second half of 2021, the Estonian government introduced a portfolio of energy subsidies to mitigate the effects of the crisis on households and companies.
Price cap for electricity and gas bills for households
Until March 2022, a price limit to electricity and gas bills will be applied for all consumers.
The price cap is set at 0.12 EUR/KWh: as the electricity price exceeds this limit, the State compensates the cost up to 650 KWh of consumption. As for gas, the cap above which the State contributes to the gas bill is set at 65 EUR/MWh, for a consumption not exceeding 2.75 MWh. The measure is valid from January 2022 to March 2022 and consumers did not have to apply to receive the subsidy, but had the deduction marked in the bill if applicable.
The budget for the price cap for household costumers and the reimbursement of electricity network charges to non-household customers is estimated at EUR 74.6 million.
Reimbursement of electricity network charges to non-household customers
From January 2022 to March 2022, companies received a full compensation to cover the network energy fee.
The budget for the reimbursement of electricity network charges to non-household customers and the price cap for household customers is estimated at EUR 74.6 million.
Reimbursement of electricity network charges for all
From October 2021 to March 2022, 50% of the electricity network fee was reimbursed to all electricity consumers. No action is needed for applying: consumers received the invoice deducted of the sum.
The budget for the reimbursement of electricity network charges for all and the reimbursement of energy bills for up to middle-income families amounts to EUR 240 million.
Reimbursement of electricity, gas and district heating bills for up to middle-income families
From September 2021 to March 2022, 80% of the energy bill (electricity, gas or room heat) was reimbursed to families up to the middle-income level. Eligible households have a net income below the median level.
The budget for the reimbursement of energy bills for up to middle-income families and the reimbursement of electricity network charges for all and amounts to EUR 240 million.
Loan guarantees for companies
The government earmarked EUR 50 million in loan guarantees for companies that are facing liquidity issues. The measures addressed companies that do not have fixed-price contracts or those for which the fixed contracts have expired. The financing will contribute to additional working capital.
As of 1 February 2022, 48 000 applications from Estonian households were received by local governments for the energy cost compensations.
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