December 8, 2022
  • December 8, 2022

Helme: State should reduce electricity transmission costs | New

By on September 23, 2021 0


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Helme says Finance Minister Keit Pentus-Rosimannus (Reform) is still talking about the need to cut 50 million euros, which he calls insensitive. “Speaking of structural changes, the idea of ​​ordering departments to cut costs by a certain amount is for them to find the least essential expenses and get money out of them. But it never worked like that in real life. Usually the department finds the spending line the most irritating to the public and says the cut is impossible, ”Helme said.

“We will only see inside the budget once it is handed over to the Riigikogu next week. It seems to me that the budget can boil down to a political agreement where the Center has obtained a continuous salary advance in certain sectors. , as well as excise duties, and the Reform Party continues to talk about austerity, ”said the Leader of the Opposition.

Helme said forecasts suggesting inflation will slow down are likely inaccurate. He said the acceleration in inflation is the result of the economic recovery from the coronavirus crisis, but mainly monetary and fiscal policy.

“It is possible that inflation will go to double digits, which would put very significant pressure on wages, also in the private sector. will soon start to have the opposite effect, ”Helme said.

The politician said that the quantitative easing that followed the coronavirus crisis was far more important than what we saw after the previous financial crisis. “Moreover, it was not channeled to financial institutions but directly into the economy. And it produced a more sudden and immediate effect. We do not control the European Central Bank’s monetary policy or fiscal policies. from other countries, ”he added. .

“What the Estonian government should do is domestic regulation regarding the prices that can be regulated. It baffles me that the government is turning a blind eye to rising energy prices. while it will have very little effect. Increases in energy prices will quickly translate into higher prices for food, transport and heating. The Estonian government, provided it has a backbone, can decide to lower this price, which would also slow inflation, ”Helme said. noted.

Helme said the energy exchange system is not working and the Estonian government should consider pulling out. The head of EKRE also said that the reduction of transmission costs by one third should also be considered alongside the reduction in excise duties.

“Transport costs are always regulated tariffs and include [network operator] Elering’s profit of around 20-25 million euros is how much cheaper we could make. Elering’s diverse and ambitious investment projects should be abandoned as the investments are included in the transmission costs, ”said Helme.

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