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The Competition Authority approved the application of Enefit Green, Eesti Energia’s renewable energy company which supplies heating to the town of Paide, for increasing the price cap for heating. This will increase the cost of heating in Paide by 13% compared to the current level from 15 April.

According to Innar Kaasik, Board Member of Enefit Green, the current price cap for heating in Paide of 47.16 euros per megawatt hour has remained unchanged since 2016. “The surrounding economic situation has changed considerably in this period and the need for increasing the price arises from the significant increase in the cost of forest chips which is the main fuel used in Paide,” Kaasik noted.

From 15 April, the price cap for heating in Paide will be 53.27 euros per megawatt hour which means a 13% increase in the price for the consumer.

“Many district heating undertakings have been forced to increase their prices due to the higher cost of forest chips in the last few years. Compared to the general price level in Estonia, the new price of heating in Paide will still remain among the cheapest in Estonia,” added Kaasik.

The price of heating in Estonia is regulated by the District Heating Act and the price cap for the heat sold to the network area of Paide is calculated by using a cost-based formula. The formula for calculating the price limit is approved and the cost-based nature of the price cap for heating is checked by the Competition Authority.

Enefit Green is a renewable energy company owned by Eesti Energia which uses wind, water, biomass, sun, biogas, and mixed municipal waste to generate electricity and heating in Estonia, Latvia, and Lithuania. In addition to the Paide Power Plant, the heat is also generated at the Iru Power Plant in Tallinn and at the Valka Power Plant. Enefit Green also owns a pellet factory in Latvia.

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