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Competition Authority Orders Narva Soojusvõrk to Publish Heat Purchase Contracts Notice

31.10.2024 | 🇪🇪 Estonian competition authority

The Competition Authority has instructed Narva Soojusvõrk to publish a notice for the signing of heat purchase contracts, following concerns over fair access to the heat procurement process.


The Competition Authority issued a directive to Narva Soojusvõrk on November 1, 2024, requiring the company to disclose a notice for the signing of heat purchase contracts with a capacity of at least 80 MW by November 7, 2024.

After Enefit Power's inability to produce heat at reasonable costs was revealed in August, the Competition Authority demanded Narva Soojusvõrk to immediately announce a heat procurement tender.

Narva Soojusvõrk delayed publishing the notice, originally due by October 1, due to a condition impeding third parties' access to participate in the heat procurement tender. The company argued that initially, a heat capacity of 27.5 MW was sufficient for the Narva district heating network.

The Competition Authority criticized Narva Soojusvõrk's plan to provide additional capacities of up to 27.5 MW by 2029, stating it would not meet the necessary heat production levels for a cost-effective transition to a more affordable heat supply solution for consumers in a reasonable timeframe.

The Competition Authority oversees competition, electricity, natural gas, district heating, postal services, communal water and sewage, railways, aviation, and ports, as well as monitors unfair trading practices, operating under the jurisdiction of the Ministry of Justice.

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