The Estonian competition authority, known as Konkurentsiamet, has initiated a new program aimed at increasing transparency in the pricing of vital services such as water and heating. This initiative has already seen participation from 42 out of 68 water companies and 18 out of 75 heating companies.

Külli Haab, the head of the regulatory service, emphasized the importance of transparency in price regulation, especially in sectors where consumers have no alternative choices. The current situation, where only the final price of services is available to the public, does not provide sufficient understanding of the actual costs involved, nor does it facilitate meaningful discussions about the justification of service prices.

Consumers have the right to know how the prices for essential services are determined. The authority plans to disclose the pricing structures of companies only with their consent and based on a specific methodology. The price will include variable costs, operational costs, capital costs (depreciation), profit margins, and supervision fees.

This approach aims to ensure comparability of prices regardless of the size or business model of the company, relies on sufficiently generalized data that typically does not reveal specific business secrets, and allows for an assessment of the costs and investments that contribute to the service price.

The authority believes that this overview will help build trust in the regulated sector and create a foundation for substantive and justified discussions regarding price formation.