District heating will rise in Tartu this autumn for the first time in a decade, and other providers may follow in their footsteps.
Due to the rising price of wood chips and the gas needed during peak consumption times, Tartu's provider Gren Eesti plans to increase its rates in September.
The company will now approach with Competition Authority to get the go-ahead.
"No one sells us fuel at the 2012 price anymore, and if fuel prices rise, without a doubt, so will the cost of heat. Currently, the price per megawatt hour is €53, and I think that the price of district heating in Tartu will be over €70 per megawatt-hour," said Margo Külaots, chairman of the board of Gren Estonia.
The price of Tartu's district heating is one of the lowest in the country, but the change will be felt by many who live in the area. Several people told Monday's "Aktuaalne kaamera" they are worried about prices.
The City of Tartu is also planning to switch several of its building from gas to district heating and now it may need additional funding to do so, Deputy Mayor Priit Humala said.
"We have not been notified of the price increase in September, and we have not been able to take it into account in any way yet. We may have to take it into account in a second supplementary budget," he said.
District heating providers Adven and Utilitas, which operate elsewhere in Estonia, including, Tallinn, are also keeping an eye on the market but have not made any decisions yet.
Editor: Helen Wright