Elering Applies for an Increase in Electricity Transmission Tariffs
Elering has submitted an application to the Competition Authority to raise the price of electricity transmission services. The price adjustment is necessary to cover the rising costs of investments and maintenance in recent years, as well as expenses related to the growth of distributed generation, ensuring security of supply, and enhancing crisis preparedness.
Elering’s current transmission tariff has remained at the 2013 level, approximately €12.50 per megawatt-hour.
"We have managed to postpone a price increase for years. To cover the additional costs caused by the energy crisis, we used congestion income received from Nord Pool. However, this income can no longer be used to offset extra expenses going forward. Considering the increase in input costs, the changing geopolitical landscape, and the growing share of renewable energy, changes to transmission tariffs are inevitable," explained Kalle Kilk, Chairman of the Management Board at Elering. Compared to ten years ago, the consumer price index has increased by 56 percent and construction prices by 46 percent, while Elering's network tariff has remained unchanged.
The evolving dynamics of electricity production and consumption have also brought a new role for Elering. Whereas previously most of the electricity produced in Estonia passed through Elering’s network, consumption is now increasingly covered by renewable energy sources connected to distribution networks. "Elering has transitioned from being a transporter of electricity to a guarantor of supply security – our task is to ensure electricity availability even when a power plant goes offline or when the wind isn’t blowing and the sun isn’t shining," Kilk noted.
Across Europe, Kilk added, the share of network-related costs in total energy costs is increasing due to the changing role of the grid. "At the same time, analysis shows that every euro invested in the grid reduces total energy costs by two euros," said Kilk.
Investments in reliability – such as the renewal of old lines and substations – are currently up to three times more expensive than a few years ago. The cost of maintenance work has increased by around 40 percent. In addition, Elering’s expenses have been affected by major recent investments aimed at increasing transmission capacity and crisis resilience. Among other measures, reserves of critical equipment and emergency recovery systems have been acquired to ensure functionality under challenging geopolitical conditions.
With the proposed tariff increase, Elering aims to generate an additional 25 percent in annual revenue, amounting to approximately €24.5 million. This would raise the network tariff from €12.50 to €17.20 per megawatt-hour.
The tariff increase would directly affect Elering’s clients – a small group of large industrial companies and distribution network operators, primarily Elektrilevi. The impact on household consumers would be limited: currently, Elering’s fee accounts for 5.9 percent of the average household electricity bill. For example, with a monthly consumption of 250 kilowatt-hours, the price increase would mean an additional cost of about €1.60 per month. For large industrial consumers, the estimated impact would be around 1.1 percent of the final electricity price.
If the Competition Authority's proceedings go as planned, the new transmission tariffs could take effect in the first quarter of 2026.