The effects of government policy on society
Session: 15th Riigikogu, 5th sitting, press briefing
Date: 2025-04-23 15:35
Participating Politicians:
Total Speeches: 11
Membership: 15
Agenda Duration: 10m
AI Summaries: 11/11 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The fourth question directs the discussion, “The Impacts of Government Policy on Society,” toward Prime Minister Kaja Kallas. The central focus is the final price of electricity for consumers and plans to introduce new fees, as envisioned by the government, for both producers and consumers. The most significant of these is the “island stability fee,” the amount of which could reach up to 40 million euros, and the “balancing reserve fee,” whose actual cost will likely fall short of the discussion’s projections and whose size could significantly impact consumer final prices (forecasts of 120–150 million euros annually starting in 2026, approximately 20% of the final price, when considering 2024 consumption). In addition, the market entry and subsequent postponement of the Kiisa power plant to 2028 will be discussed, along with its impact on consumers and producers. The committee chair’s proposals and the government's approach to this topic will be debated, involving the bill presenter, ministries, and participants in the energy market.
Decisions Made 1
No political decisions were made at this session.
Most Active Speaker
The most active speaker was Riigikogu member Urmas Reinsalu (Isamaa), who spoke four times and posed several clarifying questions. He represents the right-wing political line and primarily focused on the income forecasts for the balancing reserve and the impacts of the Kiisa station’s market entry on consumers and market mechanisms. His role was clearly leading in the discussion of energy and economic price issues, which characterizes his position as a representative of the right-wing political line.
Esimees Lauri Hussar
AI Summary
The Riigikogu moves forward, and the fourth question is to the Prime Minister Kristen Michal, posed by Urmas Reinsalu on the topic of "The Effects of Government Policy on Society".
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu asked why there are plans to introduce new electricity charges (the islanding operation charge and the balancing reserve charge), which according to the 2026 forecast could cost up to 120–150 million euros per year, i.e., about 20% of the end price, and he questioned the logic behind it and the burden it would place on Elering; in addition, he asked for the reasons for delaying the market introduction of the Kiisa power plant until 2028 and whose proposal it was.
Esimees Lauri Hussar
AI Summary
The speech is a short expression of gratitude and a plea to the Prime Minister.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal said that the numbers are public and that Elering's additional cost has been estimated at about 30 million euros, with more precise figures to be revealed later; the Estonian state has given its consent for this, and a mechanism is being developed to cover future costs; the debate between Elering, ministries and market participants has begun, and bringing the Kiisa plant to market depends on when it is most favorable for consumers and for production.
Esimees Lauri Hussar
AI Summary
Speaker Lauri Hussar thanks and asks Urmas Reinsalu to pose a clarifying question.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu asks whether bringing the Kiisa station to the market would place an additional burden on consumers, and whether from 2026 a balancing reserve fee will be introduced, and how large it would be, referring to the difference between forecasts and the actual market situation.
Peaminister Kristen Michal
AI Summary
The government proposed bringing the Kiisa emergency power plant to the market to supply peak load earlier than before, but that could be harmful to consumers, and it is expected that by 2028 there will be more generation capacity; at the same time it would cover Elering's congestion tariff, and future decisions will be made in discussions among experts and market participants, where Latvia has chosen one path, Lithuania another, and Estonia's model is currently under discussion.
Esimees Lauri Hussar
AI Summary
The chair thanked and announced that no one else has a registered supplementary question, therefore Urmas Reinsalu has the opportunity to pose a supplementary question.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu asks in public whether bringing the Kiisa power plant to the market would ease price pressure and why the government has said that this is relevant from the start of 2028 and whether the decision has already been made, and in the second part he deals with establishing the balancing reserve tariff from the beginning of 2026, its legality and cost to Elering, noting that the initial cost of 30 million euros by the end of 2025 may not hold and that the cost depends on the growth of wind power.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal said that the idea of the draft is not clear to everyone, explained how the costs of the frequency reserve would be covered through Elering, and mentioned the government's decision on the Kiisa emergency power plant sale plan and an auction no later than 2028, the aim of which is to be more favorable for consumers, and under which the electricity price could fall by about 3.5 cents, depending on timing, and the plant's operation would end when it begins to lower prices for consumers.
Esimees Lauri Hussar
AI Summary
The chair thanks and informs that today's fourth question will be concluded.