We have to consider the whole Estonia in our investment decisions. When preparing an investment plan we consider the number of customers connected to the power line and the substation, suppliers of essential services, the condition and malfunction risk of the power line, natural conditions, other plans for upgrading infrastructures, and many other factors.

Investments by County

Smart and effective investments are important both for Elektrilevi, our customers and Estonia in general. Due to the population concentration and size, a single Estonian consumer has to support more than twice the amount of the power grid compared to a Dutch or German consumer. We have to guarantee an acceptable level of supply security for all our customers in a situation where 60% of the power grid is located in scattered settlement areas and only 5% of the total electricity in the network is consumed from this part of the grid.

Whether we have managed to target our investments well is best shown by the improvement in our customers' power supply. Over the past five years, the number of breakdowns has decreased by well over one-third and the average duration of outages due to breakdowns per household has more than halved.

Our investments are divided between weather-proof underground and overhead lines and new substations. To reduce the dependence of the safety of network on weather, we replace old bare overhead lines with underground cables. On low-voltage lines we also use modern overhead cables that are much more weather-proof compared to traditional lines and can even endure fallen trees.

Due to Estonia's low population density a single consumer has to support a much larger portion of the network in comparison to many other European countries. This also affects the network-related costs.

Elektrilevi maintains and develops essential network services to create a more comfortable and simpler environment both for people and companies.

We aim to continuously improve our network service while maintaining a reasonable price range. To assure the quality of our service, we use effective and efficient solutions, continuously work on weatherproofing the network and digitize the network management.

Joint management of different network types is one of our major objectives that would allow us to offer high-quality service to our customers and society while keeping the costs and prices on a reasonable level.

In order to improve the quality of our network service, we make daily efforts to enhance the automation of the network, develop innovative solutions and carry out data analysis. We believe that through the implementation of smart IT solutions, we make life easier for everyone.

Elektrilevi began to cooperate more systematically with research institutions in the first half of the 2000s, when it identified the most critical asset groups for value creation in the distribution network together with the Lappeenranta University in Finland. Elektrilevi also cooperates with Tallinn University of Technology and the University of Tartu. For example, Tallinn University of Technology conducted a series of studies on certain aspects of asset insurance, and with the help of the University of Tartu, a management standard for asset-related projects was developed.

Elektrilevi also cooperates with academic institutions by attracting trainees, and where possible, provides the information necessary for preparing energy-related dissertations. We also publish final reports on commissioned applied research and analyses.

Research and analyses ordered by Elektrilevi:

The network fee also includes the costs of the service provided by the transmission system operator Elering and distribution network operators, such as Elektrilevi. The price also includes a reasonable uniform margin established by the Competition Authority for all network operators.

There are over 30 network operators in Estonia. The costs of each operator depend on the character of their network, the density of consumers in the area, and the investment needs of the network, which is why different network operators apply different fees.

There is a trend towards using a fixed fee in Europe as the costs related to maintaining the network connection are not substantially linked to the consumed electricity amount. A larger fixed fee percentage allows consumers of different capacity to invest into covering the network costs on a more equal basis.

In Estonia, the fixed fee percentage is lower than the European average, which means that those who consume more electricity also invest more into covering the network costs. That is why we are slightly more expensive than the European average in comparison with major consumers, although for smaller consumers our network service is one of the cheapest in Europe.

The renewable energy fee and electricity excise

The renewable energy fee is levied by the state to subsidise the generation of electricity from renewable sources or the combined generation of heat and electricity in Estonia. Elering, the transmission system operator, calculates the renewable energy fee for each year and publishes it. Distribution network operators, including Elektrilevi, have a duty to collect this fee from consumers and transfer it to the transmission system operator.

The amount of the renewable energy fee depends on the estimated amounts of electricity to be produced during the next calendar year from renewable sources, and the network service sales forecast. If the expected amounts of electricity to be produced or sold change, the renewable energy fee also changes. Elering publishes the fee rate for the next calendar year by 1 December.

The electricity excise is a tax established by the state, which is payable on the electricity used. The rate of the tax from 2010 until the end of April 2020, according to the Alcohol, Tobacco, Fuel and Electricity Excise Duty Act is 0.00447 Euros per kilowatt hour. The excise rate from the 1st of May 2020 is 0.001 Euros per kilowatt hour. The electricity excise is collected by network companies based on the consumed kilowatt hours and forwarded to the state.

Information on Elektrilevi results for 2019