The Government approved the electricity market reform bill at the Riigikogu The unicameral parliament of Estonia. session. The reform imposes on the state company Eesti Energia the obligation to sell electricity to household consumers and all electricity distributors as a universal service from October this year until the 30th of April, 2026.
The reform does not stipulate the price of electricity but frames the pricing principles. The plan indicates that the cost of the electricity will be announced in mid-September. By then, the amendments to the law have been adopted, and the Competition Authority determines the price after the coordination process with electricity sellers.
The electricity production cost and the electricity producer's reasonable profit are the terms that shape the price to which the seller may add sales costs. The universal service is available to everybody, and if you already have an electricity contract, you can switch to a universal service with no liquidated damages from the previous contractor. One can withdraw from the universal service at any time.
The universal service is automatically applied to those who have not yet sealed the deal with any electricity provider and are using the electricity stock market price. The Government has, however, stressed that the service is not to offer free or low-cost electricity but is a selective measure by the state. The action should help people with the coming winter and ensure they do not have to pay peak electricity prices.