Natural gas

Gas consumption in Estonia has decreased over the years, and due to the high price, one can predict a continued decrease in consumption and a transition to alternative energy sources. Unlike in Western Europe, in Estonia natural gas does not play such an important role in heating buildings. In Estonia, the most common type of heating is district heating, where the use of gas has decreased over the years and continues in the same direction at the current high price. The consumer price of natural gas comprises three components: natural gas, network service and excise duty. The household consumer price comprises four components – VAT is also added. The gas price develops analogously to liquid fuels under free market conditions, network service prices are approved by the Competition Authority and the excise duty rate is set out by law.