Mayor of Narva Katri Raik said on Tuesday that the border city's council intends to request help from the state. "Indoor heating has tripled in two years, so we're asking for what was once done for the rest of Estonia to now be done for Narva. It's that simple," she explained.

Raik said the money could go directly to the heat producer, who would supply cheaper heating to the residents of the eastern city.

On Wednesday, the minister of finance said this would not be possible.

"The energy price is set by the Competition Authority based on actual costs, and the government has no say in this. Supporting the producer is not allowed under state aid rules, but prices can be reduced by increasing supply. A procurement is underway, but it's already too late," Ligi told ERR.

"In any case, the idea should be investment, not subsidization. Subsidizing energy consumption would mean spending a great deal of money in an unreasonable way, as the advantage would go to those who are more solvent and those who don't conserve, not to those in greatest need," he added.

The minister said support for coping with expenses should not be based on a single product, and energy may not even come from the district heating network.

"It was not appropriate for Narva to approach the state like this, because the state cannot establish support measures municipality by municipality, and subsidizing is not reasonable. What they could have done is act like a municipality and invest in time, rather than rely on the state," Ligi said.

"For decades, Narva had the cheapest heating and did not complain, but the risk of a price increase was known. The state has already done a great deal to invest in Narva's energy sector and will continue to do so, but no one can say anything about the ongoing procurement at this stage," he added.

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