Connection fee
Based on the natural Gas Act, the network operator has the right to charge a justified connection fee to the client upon connection to the network for amending the technical conditions of connection and gas consumption.
Connection fee covers all the actual justified expenses related to connection. When calculating the connection fee, the network operator shall base its calculation on the document “Elering AS methodology for calculating the connection fee of the gas transmission system” (hereinafter Methodology (in Estonian)) approved by the Competition Authority.
According to the Methodology, the connection fee consists of the following components:
- cost of construction and related works - the cost of building and/or reconstructing gas installations to be designed and built to ensure connection capacity;
- processing fee - the cost of issuing and organising the signing of the connection offer to be drawn up on the basis of the connection application;
- transaction fee - the cost of organising operations arising from the connection contract entered into, including the cost of opening the initial gas flow.
The amounts of processing and transaction fees are established in the connection terms and conditions:
- The processing fee for both consumption- and generation-oriented connections is 1,300 euros.
- The transaction fee for consumption-oriented connection is 4,800 euros, and 6,400 euros for generation-oriented connection.
The client must pay the processing fee before the network operator begins drawing up the connection offer, for which Elering will issue an invoice for the processing fee within three working days from registering the connection application. The transaction fee is paid with the second and third instalments of the connection fee, and the amount to be paid depends on the type of application.
The processing and transaction fees consist of the labour costs of Elering’s employees in charge of connections and the actual direct costs for opening the initial gas flow and participating in the testing of the client’s devices.
The first instalment under the connection contract must be paid by the client within 60 days after the signing of the connection contract. The first instalment is 20% of the estimated cost of construction and related work specified in the contract.
The second instalment is 30% of the estimated cost of construction and related work set out in the connection contract and must be paid within 20 days after the successful tender in the procurement for the construction of the connection point is determined and before the contract is entered into with the winner of the procurement. Elering submits an invoice to the client no later than five working days after the successful tenderer is determined.
The third instalment must be paid after the connection point is completed, and it constitutes the remaining part of the actual costs of construction and related works, less the amounts already paid (first and second instalments).
Issuing technical conditions is free of charge.