The Estonian finance ministry forecasts that opening the electricity market for competition will increase the price of electricity from new year by nearly 17% and its effect on general inflation is about 0.65%, LETA/Public Broadcasting reports.
"And the electric energy tariff will increase from January 1, 2013 by nearly 50%," the ministry's macro-economic policy department head Andrus Säälik said.
An electricity bill consists of four components: electric energy tariff, grid service, renewable energy fee and electricity excise tax. Electric energy tariff currently forms 33% of the electricity bill.
Säälik said that the increase of price of electricity for households and small companies that so far buy electricity from the closed market will be 16.8%, based on the gap between the average price of the electricity bourse's Estonian price region average and the price at the closed market.
Large consumers already buy electricity from the open market and are not directly affected by the next year.
The ministry thinks in its spring economic forecasts that inflation in Estonia will this year be 3.3% and next year 3%. "Thus despite the opening of the electricity market, inflation will not accelerate net year," said Säälik, adding that the reason for this is forecasts that oil prices will decrease in 2013.