Swedish Study Examines Voluntary District Heating Price Regulation
The Swedish Competition Authority commissioned a study of how the district heating industry has addressed pricing through voluntary arrangements. Researchers examined two periods in Sweden’s history, when district heating expanded and when the electricity market was deregulated.
01.11.2026 | Swedish competition authority
The Swedish Competition Authority commissioned researchers Lars Fälting and Anders Forssell of Uppsala University, and Magnus Åberg of the University of Gävle, to examine how the district heating industry has handled pricing during two significant periods in Swedish history. The researchers are responsible for the report’s assessments and conclusions, which are not binding on the authority.
The study focuses on voluntary regulation of district heating prices. The first period is 1950–1973, when district heating became established in several major Swedish cities. The second is 1990–2012, following the deregulation of Sweden’s electricity market, when district heating was expected to operate on commercial terms.
District heating prices have repeatedly caused disputes between heat users and suppliers since the system was introduced in Sweden in the late 1940s. The state has historically not regulated these prices; instead, the parties concerned have addressed pricing in different ways and on their own initiative. Recent price developments have kept the issue prominent. The authority says promoting research on competition and public procurement is part of its remit, including commissioning independent research to examine relevant questions.
