The main tasks of the Competition Authority in the field of district heating:
- coordination of prices of district heating;
- approval of the conditions of purchase of heat;
In Estonia an organisation of the heat sector is the task of local governments. Local governments have the right to establish, within their territory, district heating areas and the procedure of provision of services. There are more than 200 district heating areas in Estonia.
The heating sector is regulated by the District Heating Act. According to the law, the heat undertaking must coordinate the price of heat sold to the consumer with the Competition Authority. When coordinating the price the Authority takes into account the fact that the costs incurred for the production and transmission of heating energy are justified.
Changes in the price of heating are mainly influenced by changes in the fuel prices and investments in improving the technical condition of the district heating network.
The task of heating undertaking is to ensure the most efficient, secure, reliable heat supply with a reasonable price and that it meets the environmental requirements and consumer needs.