Government agrees district heating compensation rate

Boiler plant chimney in Tallinn.
Boiler plant chimney in Tallinn. Source: Siim Lõvi /ERR

The government will compensate district heating consumers for 65 percent of the price increase compared to the October 2021 price, it was announced on Thursday. The measure will cover bills in February and March.

The compensation will be paid directly to district heating companies through the Environmental Investment Center and will be reflected in customers' bills.

To reduce the costs for natural gas consumers, the state will also support natural gas network operators and heat and electricity made from natural gas.

The subsidy is calculated at €28.7 per 1,000 cubic meters, which is calculated as the difference between the excise duty rate of natural gas and the EU's minimum excise duty rate.

The support is not paid to those who already consume natural gas at a reduced rate. The support period is March and April 2022.

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Editor: Helen Wright

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