Utilitas lowers heating prices in all network areas

From April on, Utilitas will reduce heating prices in nearly the all of their entire district heating networks across Estonia. In the Tallinn and Maardu areas, the price will drop to 89.68 euros/MWh, and prices will also drop in Haapsalu, Jõgeva, Keila, Rapla, and Valga regions. In Kärdla, the price will drop as of May.

Robert Kitt, the manager of Utilitas’ district heating companies, said that the fuel procurements carried out during the last months enabled a more positive outlook and lower heat prices. “The new sales price in each region depends specifically on the characteristics of that region, such as the share of domestic renewable fuel and the configuration of energy production equipment and networks,” noted Kitt.

Kitt explained that, since the energy crisis of 2021, Utilitas has constantly had to bear in mind three key aspects: energy reliability, affordability, and sustainability. “When Russia started the full-scale war in Ukraine, it was possible to secure the continuity of operations thanks to domestic renewable fuel, waste heat, and the replacement of fossil natural gas,” he said. Kitt added that Utilitas was able to cope with the sudden increase in natural gas prices in 2022 thanks to the flexibility of its district heating system. So, the extraordinary increase in gas prices did not bring along the rise of heat prices in the Tallinn and Maardu regions during 2022/2023 heating period.

“Intensive negotiations and fuel procurements that went on since the beginning of this year, ended in mid-April with the conclusion of a contract for natural gas fuel reserves for the next season. That means we can lower prices,” added Kitt.

Heat sales prices in the Utilitas network will be (plus VAT):

in Tallinn and Maardu 89.68 €/MWh

in Haapsalu 78.64 €/MWh

in Jõgeva 81.19 €/MWh

in Keila 73.14 €/MWh

in Kärdla 75.83 €/MWh (from May 1st)

in Rapla 94.26 €/MWh

in Valga 63.45 €/MWh

Utilitas is the largest renewable energy producer and district heating company in Estonia, and the largest wind energy producer in Latvia. The company provides heating to 397,000 households in eight Estonian cities and provides district cooling services. In 2022, Utilitas produced 1.9 TWh of heat and 405 GWh of electricity. 69% of energy was produced from renewable sources. Utilitas is moving towards carbon neutrality by building new renewable energy production capacities in the region, investing in solar and wind energy, and implementing the first green hydrogen pilot project.