The company said the change is necessary due to rising costs and the development of renewable energy.

"We've managed to postpone the price hike for years. To cover additional costs stemming from the energy crisis, we used congestion revenue received from Nord Pool. Going forward, we can no longer use this revenue to offset extra expenses," Elering CEO Kalle Kilk said in a press release.

"Considering the increase in input costs, the changed geopolitical landscape, and the growing share of renewable energy, changes to network tariffs are unavoidable," Kilk added.

According to Elering, the consumer price index has risen by 56 percent and construction prices by 46 percent over the past decade, while Elering's network tariff has remained unchanged since 2013.

The company also justifies the tariff hike by pointing to the shift in the system, where not all electricity now flows through the main transmission grid. Increasingly, consumption in Estonia is being met by renewable energy sources located in distribution networks.

"Elering has shifted from being a transporter of electricity to a guarantor of supply security. Our task is to ensure electricity remains available even when a power plant goes offline or when the wind isn't blowing and the sun isn't shining," Kilk said.

Across Europe, Kilk noted, the share of grid costs in total energy costs is rising as the role of the grid evolves. "At the same time, analysis shows that every euro invested in the grid ultimately reduces total energy costs by two euros," he said.

According to Elering, construction costs have risen significantly. For example, refurbishing old lines and substations is now up to three times more expensive than just a few years ago. The cost of maintenance work has increased by approximately 40 percent.

Elering's costs have also been affected by major investments in recent years aimed at boosting the grid's transmission capacity and resilience. This has included acquiring stocks of critical equipment and emergency recovery systems to cope with complex geopolitical conditions.

By raising the tariff from €12.5 to €17.2 per megawatt-hour, Elering expects to generate an additional 25 percent in annual revenue. This will be approximately €24.5 million.

The tariff increase will directly affect Elering's clients, a small number of large enterprises and distribution network operators, primarily Elektrilevi.

Currently, Elering's fee accounts for 5.9 percent of the average household electricity bill. For a monthly consumption of 250 kilowatt-hours, the price increase would mean an additional cost of approximately €1.60 per month. For large industrial consumers, the impact would be roughly 1.1 percent of the final electricity price.

If the Competition Authority's review proceeds on schedule, the new transmission tariffs could take effect in the first quarter of 2026.

In early July, Elering announced that, following changes to the grid code approved by the government, it will begin pre-developing the transmission grid for new connections. This will accelerate and make more cost-effective the integration of new generation capacity, contributing to the achievement of the country's energy goals.

--

Follow ERR News on Facebook, Bluesky and X and never miss an update!