District heating prices set to rise across Estonia

District heating prices are expected to rise this autumn in most parts of Estonia, with increases varying widely by region, ERR reported. Prices are set to climb by 1.1% in Tartu, nearly 14% in Pärnu, 8.5% in Tallinn and more than 30% in Narva, the Competition Authority said.

The authority approved a new maximum tariff for Utilitas in Tallinn of 84 euros per megawatt-hour. The price will increase by 8.5% from mid-November. Utilitas Estonia chief executive Robert Kitt said the company had kept the rise under control despite the price of natural gas more than doubling in a year and increases in wood-chip and Iru energy-block costs.

Utilitas expects prices to rise by up to 10% in nearly half of its district heating areas. The company hopes to receive a special permit to burn oil shale and to start a large heat pump plant at Paljassaare that would use wastewater and seawater. Kitt said these steps could prevent further price increases.

In Narva, district heating currently relies solely on expensive natural gas. The price depends on whether Enefit Power can produce heat for the city using shale oil. The power plants have received only a conditional special permit from the Environmental Board, and Enefit Power plans to ask the ministry for clarification on when the fuel can be used.

Narva Mayor Jaan Toots said heat would cost about 65 euros per megawatt-hour if shale oil were used, compared with 137 euros using gas. If permission is granted, the average price this winter could be around 90 euros. District heating tariffs across Estonia currently range from 53 to 150 euros per megawatt-hour, the Competition Authority said.