The nearly one-third price hike will make Narva the country's most expensive market for central heat. Regionally, it would also rank most expensive in Lithuania and second most expensive in Latvia.

Officials say the increase reflects global gas market pressures linked to war-related disruptions in the Strait of Hormuz, a key chokepoint for global oil shipments.

Narva relies heavily on natural gas, leaving it exposed to price swings.

"The gas component is 90 percent of production costs, and gas prices are the main reason for the new rate," said Pavel Rušeljuk, a board member at Narva Soojusvõrk, which manages the city's district heating network.

He said prices remain volatile but there is hope for relief next season.

"We are absolutely hoping for that," he said. "We're keeping an eye out for more market news and hoping for cheaper gas this summer."

An alternative would be output from the cogeneration unit at Narva's Baltic Power Plant, but only if electricity prices make it viable despite emissions costs.

"If electricity prices rise above €100 and the unit can enter the market, then it would be twice as cheap as the tariff approved today," Rušeljuk said.

No financial assistance from the state

Mayor Katri Raik said the Estonian government is not offering direct compensation, instead pointing to various funds and suggesting housing renovations to improve energy efficiency instead.

"Meaning Narva received no financial assistance whatsoever," she said.

Raik said the city did manage to get the issue onto the government's cabinet agenda, but warned bluntly that the border city will be facing Estonia's highest heating costs.

"Let's hope this price cap never actually ends up taking effect," she added.

A longer-term fix is expected by the end of 2028, when Narva's district heating network is planned to connect to Eesti Power Plant and switch to heat generated in the shale oil production process.

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