Estonia's new govt coalition to pay compensation for electricity, district heating, natgas

  • 2022-07-11
  • BNS/TBT Staff

TALLINN - Leader of the Isamaa party Helir-Valdor Seeder told Postimees that the new government coalition will pay a compensation to household consumers of natural gas, district heating and electricity.

Seeder said that, according to the coalition agreement, household consumers of electricity will receive a compensation of 50 euros per megawatt-hour from Oct. 1 through April 1.

During the same period, the government will compensate to consumers of district heating the portion of the price exceeding 80 euros per megawatt-hour. 80 percent of the share of the price exceeding the price cap will be compensated. For example, if the price of district heating is 100 euros per megawatt-hour, the compensation will be 20 euros minus 20 percent, which means that the person would pay a price of 84 euros per megawatt-hour plus VAT.

A similar price cap will be established for household consumers of natural gas. There will be a volume limit on natural gas consumption. No such limit will be established on electricity or district heating, however.

The government is not planning to compensate the increase in the price of firewood.