Based on the Natural Gas Act, network operators have the right, upon establishing connections to the network, to charge the customer a justified connection fee for connection and amendment of the technical conditions for gas consumption.
The connection fee shall cover all actual justified expenses related to connection. In calculating the connection fee, the network operator shall proceed from the document approved by the Competition Authority, "Methodology for calculating connection fee for the Elering AS gas transmission network", hereinafter Methodology (in Estonian)).
In accordance with the Methodology, the connection fee consists of the following components:
- cost of construction works and related works – expense on establishing and/or converting gas installations to be designed or built for ensuring the connection capacity;
- processing fee – expenses on organization issuing and signing of the connection offer to be prepared on the basis of the connection application;
- procedural fee – expense on organizing procedures under the connection contract, including the expense of opening the initial gas flow.
The amounts of the processing and procedural fees are established in the connection conditions.
- the amount of processing fee for both consumer and producer installations is 1,300 euros;
- the amount of procedural fee is 4,800 euros for consumer installations and 6,400 for producer installations;
The processing fee must be paid by the customer before the network operator commences preparing the connection offer. Elering shall invoice the customer for the processing fee within three days of registration of the connection application. The procedural fee shall be paid in the second and third instalment of the connection fee and the amount payable depends on the type of application.
The processing and procedural fees consist of Elering’s expenses on workforce and other direct costs incurred on opening the initial gas flow and for participating in testing of customer equipment.
The first instalment under the connection contract must be paid by the customer within 60 days of entering into the connection contract. The first instalment is 20% of the estimated cost of the required construction works and related works.
The second instalment is 30% of the estimated cost of the required construction works and related works and must be paid within 20 days of the determination of the successful bidder in the procurement for construction of the connection point and before entering into a contract for services with the winner Elering shall invoice the customer within five business days of determination of the successful bidder.
The third instalment must be paid after the completion of the connection point and is made up of the remainder of the actual expenses on the construction works and related works, less amounts already paid (first and second instalment).
The issuing of technical conditions is free of charge.