Association: District heating prices not expected to rise this year

Siim Umbleja, head of the Estonian Power Plants and District Heating Association, said due to the stability of the fuel market this year, district heating prices are not expected to rise this winter.
The district heating season is only just beginning this year, and in most cases, automatic systems decide when to switch on the heating unit based on the average outdoor temperature.
"With prices, in a way, they are secure, because in the case of district heating, prices are fixed in advance and approved by the Competition Authority," Umbleja told "Vikerhommik".
District heating costs include fuel, labor and investments.
"Today it [the fuel market] has been relatively stable, and one could even say there's been a certain downward trend. Not significant and not everywhere, but there is a certain confidence now, so I myself do not expect a price increase for district heating this year," Umbleja said.

In some areas, prices may even fall. However, it is not known what difference the increased VAT rate will have.
"I can't say exactly whether this will show up on bills in the end, but who knows," he added.
Those who want to save money by postponing the start of the heating season should keep in mind that fighting humidity is also costly in the long run, Umbleja said.
In recent years, prices have remained stable due to newly built housing developments.
"District heating is a technology that depends on scale – the more consumers there are, the cheaper it is for everyone. In Estonia, around 300 buildings are connected to district heating systems each year. As long as this trend continues, we can guarantee stability and perhaps even price reductions," Umbleja noted.
Building renovations also play an important role in heating. When units are upgraded, automation is installed, and modern solutions are introduced that enable energy savings.
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Editor: Barbara Oja, Helen Wright
Source: Vikerhommik










