A bill aimed at slashing VAT on energy bills is being held-up at the Riigikogu – partly because the chamber is nearing the end of a four-week winter recess in any case – but also as the two coalition partners, Reform and Center, aim to patch up differences on the bill.
The Ministry of Economic Affairs and Communications has drawn up a plan of options on how energy production might look in the future in Estonia. The government is planning to decide next year, based on the plan, if more power stations should be built, and of what sort.
The gas distributor network fee to consumers is to be struck off altogether through to at least the end of March, the government announced on Monday. The measure joins a similar one already applied to the electricity network charge (which has been reduced by 50 percent) amid soaring energy prices in recent weeks. The government also set the threshold monthly household income at €1,125 – below this level, households also qualify for bill payment support for gas, electricity and heating bills.
Director General of the Competition Authority Märt Ots said that European Union directives allow regulated energy prices for home and small consumers. This would make it possible to sell electricity at cost price in Estonia.
Keeping future, sudden rises in electricity prices at bay, alleviating the current crisis and the possible psychological impact of a large proportion of the population suddenly finding itself in financial difficulty and having to apply for support were the topics on the table during Vikerradio's 'Rahva teenrid' politics discussion show broadcast Saturday.