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-2022-40/2906 – measures in Estonia
Country | Estonia , applies nationwide |
Time period | Temporary, 01 October 2022 – 31 March 2023 |
Context | War in Ukraine, Cost of Living Crisis |
Type | Legislations or other statutory regulations |
Category |
Promoting the economic, labour market and social recovery into a green future
– Support for energy bills |
Author | Ingel Kadarik (Praxis Center for Policy Studies) and Eurofound |
Measure added | 15 September 2022 (updated 13 June 2023) |
Households are experiencing significant increase in energy prices due to several factors. Therefore, the government agreed to establish several temporary compensation schemes for electricity, gas and district heating costs for private households. The Ministry of Economic Affairs and Communication issued a corresponding regulation on 15 September 2022. The compensation schemes will take effect as of 1 October 2022.
Electricity Households are compensated for up to €0.05/kWh from the average monthly price of electricity (excl. VAT) which exceeds €0.08/kWh. The compensation is based on the average monthly electricity cost of the household.
Gas Households are compensated 80% of the part of the average monthly gas price that exceeds €80/MWh / €0.7744/m3 (excl. VAT). The consumption of up to 2.6 MWh / 251.7 m3 is compensated, which is the monthly gas consumption of an average household.
District heating Households are compensated 80% of the part of the average monthly district heating price that exceeds €80/MWh (excl. VAT).
The compensations are automatic, meaning that the seller reduces the prices on the invoice themselves and the consumers will receive invoices with reduced costs. The compensation applies to energy consumed between 1 October 2022 and 31 March 2023.
It is estimated that the target group includes approximately 400,000 household electricity consumers with a consumption volume of approximately 1.1 TWh during the compensation period. There are approximately 40,000 domestic gas consumers in Estonia, whose estimated consumption volume in the period is approximately 0.55 TWh. With a district heating price of over €80/MWh there are approximately 46 network areas with a projected sales volume of approximately 1.9 TWh.
It is expected that:
Workers | Businesses | Citizens |
---|---|---|
Does not apply to workers | Does not apply to businesses | Applies to all citizens |
Actors | Funding |
---|---|
National government
|
National funds
|
Social partners' role in designing the measure and form of involvement:
Trade unions | Employers' organisations | |
---|---|---|
Role | No involvement | No involvement |
Form | Not applicable | Not applicable |
Social partners' role in the implementation, monitoring and assessment phase:
Social partners were not involved.
Business associations (e.g. Estonian Association of SME'S; agricultural producers) have expressed their dissatisfaction with the fact that there will be no measures available for companies. However, their wish is mainly to be able to make use of the universal electricity service. 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.
Citation
Eurofound (2022), Energy cost compensations for households, measure EE-2022-40/2906 (measures in Estonia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/EE-2022-40_2906.html
Share
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. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.
Article12 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.
Article12 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.
Article5 July 2022
This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.
ArticleDisclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.