Estonia's Heating Bills Set to Soar Amid Gas Price Spike

Nearly all types of heating in Estonia are set to become more expensive as the country heads into its heating season. The market price of natural gas has surged, rising by a staggering 2.5-fold compared to last year's prices amid the crisis in the Strait of Hormuz.

This means that households using district heating, gas heating, heat pumps, and wood-burning stoves will see their bills increase. However, the price of firewood has only risen slightly due to stable raw material costs. According to Mart Liivak, head of Harju Puu, dry firewood may become up to 5-10% more expensive.

The cost of wood pellets has reached a record level, with prices remaining high despite the usual summer price decline. This is largely due to increased exports of Estonian pellets to Poland.

District heating prices are also rising, with Utilitas Estonia reporting an average increase of around 10% in five out of eight areas. The company's head, Robert Kitt, linked this to higher fuel costs, including a 20% price hike for wood chips and a 6% increase by the Iru waste-to-energy plant.

Narva is facing the most difficult situation, with its district heating system heavily reliant on gas. The city's mayor, Jaan Toots, said that heat prices in Narva have reached €137 per megawatt-hour, the highest rate in Estonia. To mitigate this, the city is requesting special permission to use shale oil for heating this winter.