In Estonia, the natural gas price reached record level – EUR 160 per megawatt hour. The price increased by many times over the past year, yet the majority of households on central heating will not be directly affected as most heating companies burn wooden chips to produce heat energy, Estonian public broadcaster ERR reports.
Gas market leader Eesti Gaas provides the energy resource to a total of 42,000 private consumers and apartment associations in the Baltic country. Close to a half of Estonian households are heated with district heating, the prices of which are regulated by the Estonian Competition Authority.
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Information of the Estonian Power and Heat Association indicated that 60% of thermal energy is produced from wooden chips, while a fifth of district heating stations also burn natural gas. The majority of heating stations dependent on natural gas are in located Pärnu and Põlva counties, noted association’s chief Siim Umbleja.
To explain the price dynamics, Eesti Gaas board member Margus Kaasik told that the price of natural gas stayed at EUR 20 per megawatt hour for a long time and began increasing in spring 2021. It was around EUR 50-60 up until September, ERR reports.
Gas price in Estonia hits record, but most heating companies burn wooden chips
