A new line on the electricity invoice “cost for renewable energy”

Beginning in June, all clients will receive an updated electricity bill: the cost for renewable energy is added to the invoice. Due to the amendments to the Electricity Market Act, from 1 May all electricity consumers will start paying support for renewable energy in the amount of 2.18 cents net of VAT for every kilowatt-hour used (2.57 cents VAT inclusive). The collected support goes towards the funding of renewable energy producers in Estonia. On the new electricity invoice, the customer sees on a different line how much he/she has to pay in support of renewable energy and for energy produced in efficient co-production mode. This makes the invoice clearer for the customer, and makes the end price, calculated from components, more understandable. Unlike the network and electricity prices, the price of renewable energy is the same for day and night time electricity – 2.18 cents/kilowatt-hour. Therefore the price for renewable energy is always on one line on the invoices. In case of a two-tariff package, the price for renewable energy is the added sum of the amounts of energy used during the night- and daytime periods. If the share of energy from renewable sources and from modes of efficient co-production increases in the future, the sum on the electricity invoice will also increase. The levels of support are reviewed and amended when needed at the end of every calendar year. Additional information about the support and purchase obligation of the funding can be found here. An image of the renewed electricity invoice can be found here.