As energy prices for consumers have increased rapidly, the Estonian government has backed a package of support to cover the increasingly expensive bills for tens of thousands of low-income households, Estonian public broadcaster ERR reports.
On Thursday, October 14, the ruling coalition made up of the Reform Party and the Centre Party agreed to help low-income population cover their electricity and gas bills for this heating season.
Estonian Economic Affairs Minister Taavi Aas explained that energy providers would be compensated for the discounts, something which will cost the state around EUR 75 million over half-a-year months.
Read also: Latvijas Gāze chairman: the economy won’t function if gas prices remain high
The state support is planned to be ensured retroactively, from September 2021 to March 2022, meaning the coldest months of the year. The government will fund the program using some of the EUR 200 million expected as proceeds for CO2 emission quota trading in 2021.
On the Nordic-Baltic Nordpool energy trading market, prices reached an historic high late last week, at EUR 178.4 per MWh. In 24 hours to Thursday, October 14, however, they dropped to EUR 95.82 per MWh for Friday, October 15, ERR reports.
Estonia to help low-income families to pay electricity, gas bills
