Price for the Network Service

Renewable energy fee and excise

The renewable energy fee and electricity excise are a state fee and a tax. They are not part of the network fee but must be collected and passed on by the network operator and so they appear on the bill issued by the network operator.

The renewable energy fee

The renewable energy fee is levied by the state to subsidise the generation of electricity from renewable sources or in the combined generation of heat and electricity in Estonia. The transmission system operator calculates the renewable energy fee for the next year and announces it. Network operators collect the renewable energy fee from consumers and transfer it to Elering.

Who approves the fee? The transmission system operator Elering calculates the renewable energy fee using the formula approved under the Electricity Market Act.

The fee is calculated from an assessment of how much will be paid to subsidise renewable energy in the next calendar year and of the network services that will be consumed. The aim is to subsidise the generation of electricity from renewable sources or the combined generation of heat and electricity in Estonia.

How often is it changed? Elering publishes the renewable energy fee on its website on 1 December each year.

What causes the changes? The renewable energy fee depends on the forecast for the amount of electricity to be generated from renewable sources or in the combined generation of heat and electricity during the next calendar year, and also on the level of sales of network services. If the production or sales forecast changes, so does the renewable energy fee.

Who collects the fee? Each month network operators transfer the renewable energy fee received from customers in full to Elering. No brokerage fee is charged.

Who provides the service? Using the renewable energy fees that it receives, Elering pays subsidies to companies that generate electricity from renewable sources or in the combined generation of heat and electricity. The subsidies are paid in relation to how much renewable energy is generated.

Electricity excise

Electricity excise is levied by the state. The electricity excise tax rate from 1 March 2010 is 0.00447 euro per kilowatt-hour not including VAT under the alcohol, tobacco, fuel and electricity excise tax laws.

Electricity excise is collected by the network operators on every kilowatt-hour of electricity consumed and passed on to the state. The excise is not part of the network services fee but a separate component of the bill.