The price of heat in the capital will jump by 65.5 percent from December after energy group Utilitas was allowed to raise Tallinn district heating network area prices.
The current price is €50.14 per megawatt-hour and it will rise to €83 per megawatt-hour, meaning an increase of 65.5 percent.
The company announced on Monday that the Estonian Competition Authority has approved new price ceilings for thermal energy in the Tallinn network area, which includes Tallinn and Maardu, and the Rapla network area.
Utilitas, a district heating provider and renewable energy producer, said the price hike is due to the increase in the price of natural gas, which has increased six times during this year.
"At the beginning of the year, we submitted a price application to the Competition Authority, which would have led to a reduction in the maximum price of heat in Tallinn. However, during the year the situation has changed drastically as a result of the increase in gas prices, and unfortunately, the maximum price set forth at the end of October was significantly higher than earlier instead," a spokesperson for Utilitas told BNS.
Utilitas supplies heat to 175,000 households in Tallinn, Maardu, Keila, Rapla, Haapsalu, Kärdla, Jõgeva and Valga.
The price will also rise in the Rapla network area, increasing from the current €63.2 per megawatt-hour to €72.34 per megawatt-hour. This is an increase of 14.5 percent.
Utilitas said it will not yet change prices for the district heating areas of Haapsalu, Kärdla, Keila, Jõgeva and Valga.
The group's companies operate three biofuel-powered cogeneration plants, 26 boiler houses and nine solar power plants.
Editor's note: This article has been updated to add a comment from Utilitas.
Editor: Helen Wright