The Riigikogu sent the bill on a preferential rate for renewable energy charge for large electricity consumers to its third reading
The Riigikogu deliberated a Bill and heard the replies to seven interpellations.
A Bill passed the second reading
The Bill on Amendments to the Electricity Market Act, the Alcohol, Tobacco, Fuel and Electricity Excise Duty Act and the Income Tax Act (787 SE), initiated by the Government, will establish a preferential rate for renewable energy charge for large electricity consumers.
According to the explanatory memorandum, the price of electricity for Estonian industrial companies in Estonia is significantly higher than the average in neighbouring countries and Europe. This makes it expensive for industrial companies to operate in Estonia and reduces the attractiveness of Estonian investments. With a view to bringing down prices, supporting the competitiveness of the industry, and bringing new investments to Estonia, the bill will establish a 75–85 percent preferential rate for renewable energy charge for consumers who consume more than 1 GWh of electrical energy per year.
The bill will also omit storing of electrical energy as one of the restrictions on qualifying as a gas intensive business and receiving the associated reduction on excise duty on gas. Storing electrical energy allows businesses to reduce their energy costs by storing energy during low-price hours and consuming the stored electrical energy during high-price hours.
During the second reading, amendments were incorporated into the bill that, among other things, will expand the circle of recipients of the renewable energy charge reduction, making it possible to apply for a reduction in the renewable energy charge also on the basis of an additional area of activity, as well as as de minimis aid, in addition to state aid. Amendments to the Income Tax Act were also included in the bill to prevent unfair taxation when participating in balancing markets.
Aleksandr Tšaplõgin (Centre Party), Mart Maastik (Isamaa), Jaak Aab, Evelin Poolamets (Estonian Conservative People’s Party) and Mario Kadastik (Reform Party) took the floor during the debate.
Isamaa Parliamentary Group moved to suspend the second reading of the Bill, but the motion was not supported because 16 members of the Riigikogu voted in favour of the motion and 41 voted against. The second reading of the Bill was concluded. The third reading and final vote are scheduled for the sitting on Wednesday, 8 April.
Seven interpellations were replied
Minister of Economy and Industry Erkki Keldo replied to the interpellation concerning high youth unemployment (No. 924), Minister of Infrastructure Kuldar Leis replied to the interpellation concerning the locations of local stops on the route of Rail Baltic (No. 955) and Minister of Defence Hanno Pevkur replied to the interpellation concerning reduction of subsidies for national defence education (No. 958), submitted by members of the Riigikogu.
Minister of Education and Research Kristina Kallas replied to the interpellations concerning ensuring freedom of conscience in the implementation of the LGBTIQ action plan (No. 883) and the renaming of the professorship of oil shale technologies (No. 908). Minister of Regional Affairs and Agriculture Hendrik Johannes Terras replied to the interpellations concerning public transport and regional policy (No. 901) and the ensuring of food security and stock (No. 904).
Kalle Grünthal and Peeter Ernits took the floor during the debate.
The sitting ended at 10.20 p.m.
Verbatim record of the sitting (in Estonian)
Video recording will be available to watch later on the Riigikogu YouTube channel.
Riigikogu Press Service
Gunnar Paal
+372 631 6351, +372 5190 2837
[email protected]
Questions: [email protected]
