TALLINN - Estonian state-owned power generating group Eesti Energia is to start offering to its private customers electricity from local wind farms at a fixed price with the option to lock down the price for up to five years.
Member of the management board of Eesti Energia Agnes Roos said that long-term contracts have proven very popular among business customers and that she is pleased that the group can now also offer this option to its private customers.
"The price of electricity has fluctuated to a great degree in the past few months and will continue to do so in the future. A large share of our customers want to plan their household expenses longer in advance and do not want to find themselves at the mercy of the power exchange. The opportunity to lock down one's power costs for five years is unique in today's uncertain world. To put it simply, the new package will establish a price cap on electricity even when national support measures are terminated," Roos said in a press release.
Eesti Energia promises that the price will remain unchanged throughout the five-year contract period. The electricity consumed by the customers will have been produced by Enefit Green's renewable energy generation units.
Roos said that long-term agreements contribute to the faster establishment of wind farms because developers will be able to make their investments in confidence that there will be a market for their electricity.
"The past winter showed that we need to have more wind farms as soon as possible to achieve an affordable electricity price," she said.
Close to one-third of Eesti Energia's customers have opted for the electricity package based on the exchange price. The other two thirds have locked the price down for themselves and are thus less affected by price fluctuations on the electricity exchange.
The number of customers that have chosen the exchange price based package is largest among the 40-49 age group while the fixed price option is preferred most by the elderly.