According to the Competition Authority, the heat supply in the Tallinn district heating areas of Adven Eesti AS (Kesklinn, Pirita, Nõmme and Põhja-Tallinn districts) where heat is produced only from natural gas, was not economically efficient and did not meet the expectations of consumers to buy thermal energy at a reasonable price. Heat prices have risen significantly in these network areas. Therefore, the Competition Authority informed that Adven Eesti AS must immediately start preparing the announcement of a competition for the purchase of heat and publish the relevant notice no later than April 1st 2022. By holding a competition, the capability to use alternative fuel types for heat production is ensured, which would make the price of heat cheaper. Heating undertakings wishing to participate in the competition are guaranteed equal conditions that are in line with the principles of the Competition Act and District Heating Act.
The district heating customers of Adven Eesti AS' network areas located in Tallinn joined the AS Utilitas Tallinn network area from 1 October. The joining included the network areas of Adven Eesti AS in Nõmme, Põhja-Tallinn, Kesklinn and Pirita districts. The purpose of connecting district heating network areas was to ensure a sustainable solution in a situation where the record high price of natural gas has caused a large difference in the district heating prices of different network areas. In the network area of AS Utilitas Tallinn, the maximum price of heat is 97.15 €/MWh + km.
Since heat production is a monopolistic field where the consumer cannot choose the service provider, the price of district heating (both production and network service price) is approved by the Competition Authority. In the case of heat production, the District Heating Act does set out free access to the heating network under certain conditions. The Competition Authority has the right to assess the economic profitability of the heat supply and, if the production is economically inefficient, has the right to require the network operator to announce a competition.