Eesti Energia will be providing the national universal electricity service from 1 October. This means that all household consumers, including apartment associations and others selling electricity to household consumers can buy electricity at a regulated price. The solution is designed to ensure a moderate price level.
Whom is the national universal service meant for?
The universal service is intended for all household consumers, including apartment associations, if their electricity is more expensive than the universal service.
How is the price of the universal service formed?
The electricity for the universal service is produced in the oil shale power plants of Enefit Power, a subsidiary of Eesti Energia.
The price of the universal service is formed in two stages. The producer price for the universal service is calculated by Enefit Power and approved by the Competition Authority. It includes several components: the price of oil shale, the price of CO2, environmental charges, labour costs, repair costs, etc.
Electricity sellers add their justified costs related to the provision of the service, a reasonable business profit and value added tax to the producer price. This is how the final price of the universal service is determined.
The final price may vary between sellers and may or may not change over time.
Is the universal service price fixed for the entire contract period?
No. The price of the universal service may change over time, as it depends on several variable components such as the CO2 quota price and other electricity production costs. If they go down, the price of the universal service will drop; if they rise, the price of the universal service will increase.
All changes to the producer price will need to be approved by the Competition Authority.
Where can I see the universal service price and how is it reflected in my electricity contract?
Once the universal service price is in place, you can see it in Eesti Energia’s self-service and on the website www.energia.ee/en. Since it can change over time, the specific price is not reflected in any contract.
How long is the universal service valid for?
Eesti Energia will be providing the universal service until 30 April 2026
What will the transition to universal service look like?
Electricity sellers are obliged by law to provide a universal service if their customer’s current electricity package is more expensive than the universal service. This means:
- If your current electricity package is more expensive than the universal service, you will be automatically transferred to the universal service. Eesti Energia will send you a quote by letter once the price of the universal service becomes clear. The contract will be effective from 1 October.
- If you are a customer of Eesti Energia and signing a universal service contract but haven’t received a quote, your contract will be valid retroactively from the 1st of the month of subscription, if you wish.
- If you receive a universal service quote but do not wish to take it, you must inform your electricity seller.
- If your current electricity price is lower than the price of the universal service, you will not be sent a universal service quote. If you wish, you can still choose universal service by changing your current electricity contract via self-service.
Can I join Eesti Energia’s universal service if I currently have another electricity supplier?
Yes, if you are a customer of some other electricity seller and want to buy universal service from Eesti Energia, you can do so by signing a contract with us and choosing a universal service package.
Your contract will be valid from the next calendar month, if you enter into it before the 15th. When changing your electricity supplier, you cannot purchase electricity retroactively at the universal service price.
Can I terminate the universal service at any time and return to my old electricity contract?
Universal service packages can be terminated at any time free of charge. However, returning to the terms of your old electricity contract will no longer be possible, but a new electricity contract must be concluded in accordance with the conditions valid at that moment.
What if my current electricity supplier does not provide a universal service?
If your current electricity supplier does not provide a universal service or you wish to change your universal service provider, you can sign a new contract with a new supplier.
Does the universal service price affect all components of my electricity bill?
Electricity bills will continue to be composed of three components: charge for electricity, network fee, and state taxes (renewable energy charge and electricity excise tax). The price of the universal service affects only the first of them: the charge for the consumed electricity.
How does general service differ from universal service?
The general service is used by customers who have a network contract but have not signed an electricity purchase contract with any electricity seller. As a universal service customer, you have a valid electricity contract with the electricity supplier of your choice.
Until now, the exchange price has been used as the basis for the general service price. From 1 October, the exchange price for the customers of general service will be replaced by the universal service price.
If I choose universal service, will the national energy price support measure apply to me as well?
Regardless of your current electricity contract, all household consumers will receive the national price compensation of up to five cents per kilowatt-hour (plus VAT) from 1 October to 31 March 2023. The energy subsidy will be automatically added to your electricity bills, you don’t have to do anything extra. The first bill with price compensation will be for the month of October, reaching you in November.
The lowest threshold of the support measure is eight cents per kilowatt-hour. If your current electricity price is eight cents per kilowatt-hour or less, the measure will not apply. If your valid fixed electricity price is, for example, ten cents per kilowatt-hour, then your discount will be two cents per kilowatt-hour. VAT will be added to the mentioned amounts.
Can I sign a universal service contract on behalf of my family member?
Yes, but first you must formalize an authorization, giving you the rights to manage operations related to another person’s electricity purchases. This can be done either via Eesti Energia’s self-service or with a simple authorization sent by regular mail. Please send your simple authorization to Eesti Energia klienditeenindus, Lelle 22, 11318 Tallinn.