Estonia: record-breaking electricity prices

Chamber of Commerce and Industry chairman Toomas Luman reported that the record-breaking electricity prices are also worrying entrepreneurs. He noted that companies’ high electric bills will eventually affect consumer prices.

Luman told ETV’s interview show “Esimene stuudio” on Tuesday that the increase costs of the recent hike in electricity prices to households has also happened to companies. But consumers will end up paying for companies’ high bills.

“And what is there to do, it will all end up in consumer prices. Yes, certainly not right away because there are supply contracts, prices are set, it will take some time. In any case, the consumer will end up paying for it,” Luman said.

He said politicians saying large corporations should pay for the high electricity prices is a half-truth. “No large corporation has the profit margins to pay for electricity that has doubled or tripled in price,” the entrepreneur said.

Luman added that there are currently no signs of energy prices going down for the winter in Europe. He added that there is a danger of high prices negatively affecting the competitiveness of Estonian and European companies, but it is not in the agenda yet.

“There undoubtedly is that danger. Luckily, what has happened in the world – supply chains have been broken, goods do not move, you cannot get electronic chips regardless of price – works against that. This means taking jobs away from Europe and the U.S. or other western countries is likely not topical today,” Luman explained.

 

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