The Economic Committee of the Riigikogu has presented to the Plenary Assembly for the first reading a bill that allows to end the universal electricity service and strengthens the security of energy supply.
Chairman of the committee Priit Lomp stated that universal service is no longer necessary. “Universal service was created to cap the price of electricity and thus protect people from the very high electricity bills of two winters ago. Electricity prices have now fallen and the people who remain using the universal service they are in a worse situation than those who buy electricity on the exchange: by eliminating the service we will lower electricity prices for them and improve their livelihoods”, explained Lomp. In October last year the universal service had 72,000 household consumers and 87,000 household consumers purchased electricity at the universal service price as part of the universal service.
Vice President of the Commission Lauri Laats He noted that the faction of the Center Party drew attention to this problem and initiated the relevant project already last year, but unfortunately it did not find support in parliament. “As a result of the government coalition’s inertia, 200,000 universal service consumers paid on average almost two and a half times more for electricity during the year, and the state gained one million euros in easy income at the expense of the our people. Universal service does not justify itself and the government should conduct a thorough analysis to assess whether and to what extent its creation has helped electricity consumers,” Laats said.
The bill amends the Electricity Market Law, the Law on Amendments to the Electricity Market Law and the Competition Law, the Natural Gas Law and the Tax Administration Law. The change in the law provides for the cessation of universal service from 1 May this year. Furthermore, a legal regulation will be created for the introduction of the electricity reserve capacity mechanism. Furthermore, with the amendment of the law, the administrative costs relating to the pier and the liquid gas transport infrastructure are also included in the payment of the strategic gas reserve, and the Competition and Market Guarantor Authority has the right to initiate proceedings for minor crimes if it appears that the seller has resold the gas purchased from the strategic gas reserve to the consumer at a higher price than the purchase price.
The Economic Committee decided to send Law amending the Electricity Market Law and other laws (termination of universal service and ensuring security of supply) draft (351 SE) at the first reading in the Great Hall of the Riigikogu, which will take place on February 14 upon the proposal of the committee.
Riigikogu press service
Maris Meiessaar
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2024-01-22 13:46:48
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