Government weighs compensating the grid fee: what it would mean for your electricity bill
ERR reported on October 2, 2026, that Energy and Environment Minister Erkki Keldo named grid fee compensation as the simplest way to ease the high electricity prices expected this winter. No decision has been made yet, but it would directly affect every household's electricity bill.
What happened and when
ERR covered the ETV morning show "Terevisioon" on October 2, 2026, where Minister Erkki Keldo said the government received an overview on Thursday of global gas prices, electricity price forecasts, and Estonia's options for offering price stability. Keldo pointed out that the easiest measure to implement, with the least bureaucracy, would be compensating the grid fee, since it makes up a significant share of the final electricity price. The minister did not name a final decision or the price threshold at which intervention would begin, in order to avoid speculation.
A similar measure has been used before. According to grid fee collector Elektrilevi, grid fees were also compensated in 2022, when a 50 percent discount worth three to six million euros a month was provided. According to Elektrilevi board member Rudolf Penu, the technical solutions for a similar discount already exist, but an agreement is needed on where the money to cover the discount would come from.
How big a share of the bill is the grid fee
According to ERR, electricity itself makes up 49 percent of the final bill and the grid fee 39 percent, with the rest made up of excise duty, the renewable energy fee, and other components. This means the grid fee is not a marginal cost item but the second-largest part of the bill right after the price of energy itself. That is why reducing it would affect the bill much more noticeably than cutting some smaller fee would.
From the perspective of apartment associations, Sergei Mordovin, chairman of the Õismäe apartment association, pointed out that depending on the electricity price, the grid fee can make up as much as half of the electricity bill. In his view, halving the grid fee in such a case would cut the entire bill by a quarter. This example also applies to the associations' own electricity costs, including the building's technical systems.
Example: how a 50 percent discount would change the bill
As one scenario worth considering, Keldo mentioned that the state would calculate how much it would cost the state budget and grid companies to compensate the grid fee by, for example, 50 percent. Let's assume a household's electricity bill is 100 euros a month, of which, according to ERR, 39 percent, or 39 euros, is the grid fee. If the state compensated half of that amount, the bill would fall by 19.50 euros, meaning only 80.50 euros would remain payable out of the original 100-euro bill.
Anyone can work out this kind of percentage change based on their own actual bill using a percentage calculator: just enter the grid fee portion of your bill and the discount percentage to see how much the monthly bill would drop. Since, according to Elektrilevi's explanation, the cost to the consumer would be levelled out over the year, lower in winter and higher in summer, it is better to look at the annual average rather than a single month's bill.
What this means for consumers in practice
Minister Keldo stressed that ultimately this money comes, one way or another, out of the consumer's or taxpayer's pocket, regardless of whether the compensation comes directly from the state budget or through some other channel. He also explained that grid fees go toward strengthening the electricity network and funding investments that ensure energy security and supply reliability across Estonia, including in sparsely populated areas.
Since no decision has yet been made and the minister did not specify a price threshold or timeline, it currently makes sense to follow the government's next steps and check your own electricity bill regularly. According to Keldo, compensation would also require consultation with the Competition Authority and technical readiness on the part of electricity sellers, so actual implementation will take time even once a decision is made.
Source: ERR, Keldo pakub elektrihinna leevenduse võimalusena võrgutasu kompenseerimist (2026-10-02)