Estonian Authority Proposes Heat Network Merger to Lower Costs
The Estonian competition authority recommends merging the Märja and Tartu heat network areas to ensure affordable heating for residents amid rising costs.
09.07.2025 | Estonian competition authority
The Estonian competition authority has advised the merger of the Märja heat network area with the Tartu heat network to address the increasing heating costs faced by residents in Märja. This recommendation comes in light of concerns that investments in production and future heating infrastructure could lead to unreasonably high heat prices for consumers.
N.R. Energy OÜ initially proposed a maximum heat price of €149.10/MWh (excluding VAT), later reducing it to €134.80/MWh. In contrast, the neighboring Tartu heat network, managed by Gren Tartu AS, offers a significantly lower price of €64.69/MWh.
The authority emphasizes that heat supply must be reliable, efficient, and priced reasonably, while also meeting environmental and consumer needs. Merging the Märja and Tartu networks is seen as the best solution, as it would create synergies, optimize costs, and ultimately lower heating prices for Märja residents. Alternatively, the authority suggested that N.R. Energy OÜ could voluntarily transfer its network operator obligations to Gren Tartu AS or allow another operator to operate in Märja.
The Estonian competition authority oversees various sectors, including competition, electricity, natural gas, district heating, postal services, water supply and sewage, railways, aviation, and ports, and works to prevent unfair trading practices in the agricultural and food supply chain. It operates under the Ministry of Justice and Digital Affairs.