Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure EE-2022-40/2905 – measures in Estonia
|Country||Estonia , applies nationwide|
|Time period||Temporary, 01 October 2022 – 30 April 2026|
|Context||War in Ukraine|
|Type||Legislations or other statutory regulations|
Responses to inflation
– Support for energy bills
|Author||Ingel Kadarik (Praxis Center for Policy Studies) and Eurofound|
|Measure added||15 September 2022 (updated 21 September 2022)|
Due to the significant increase in energy prices and mitigate the effect on private consumers, the Government proposed a change in the laws to allow private households to buy electricity with a price not tied to the electricity market. The Parliament approved changes to the Electricity Market Act and the Competition Act on 15 September 2022.
Currently, households can choose between market prices or fixed-term contracts with fixed prices determined by the electricity sellers when buying electricity. Fixed-term contracts include an early cancellation fee. The amendment to the law obligates the state energy provider to sell electricity to households and electricity distributors as a universal service at the price determined by the Competition Authority taking into account production costs and a reasonable profit, thus independent of the market price.
Other electricity sellers can also offer a universal service to their customers, and they get the right to buy the electricity they need for this from the state's electricity producer.
The price of the service will be determined by the end of September 2022.
Choosing universal service over their current contracts is voluntary for the consumers. Until 30 September 2023, consumers who currently have a fixed-term contract, can cancel their contract in order to switch to a universal service contract without being charged an early termination fee or for damages by their previous provider.
No information available.
|Does not apply to workers||Does not apply to businesses||Applies to all citizens|
No special funding required
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
Business associations (e.g. Estonian Association of SME'S; acgricultural producers) have expressed their dissatisfaction with the fact that universal service is only available for households and not for companies.
The government stated that the discussions over the support measures for companies will take place in September after receiving the European Commission's views on subsidies for the European Union's economy.
Eurofound (2022), Universal electricity service: Price caps on electricity for households, measure EE-2022-40/2905 (measures in Estonia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/EE-2022-40_2905.html
30 January 2023
Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. As winter approaches, preventing and addressing energy poverty becomes a priority. This article summarises the policy responses as reported in Eurofoundâ€™s EU PolicyWatch database from January to September 2022.Article
12 September 2022
Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.Article
12 September 2022
This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.