The cost of district heating for consumers in Finland could rise by 70 per cent by 2020, according to newly released estimates.
Trade body PTT, which consists of the Finnish real estate and homeowners’ associations, released a report this month saying that energy bills for an average household could increase by €50-70 (US$64-89) per month over the next five years, the Helsinki Times has reported. Jukka Kero, the real estate group’s chief economist, told the newspaper that the number is a preliminary estimate rather than an official forecast.
PTT’s research director, Markus Lahtinen, said: "There are still many uncertainties. However, the main point is that the district heating price will spiral. The price hikes will be dramatic and rapid.”
The price jump has been blamed on the EU’s 2030 emissions reduction policy, which has tightened carbon credit rules for industrial emissions. District heating plants were previously exempt from the rules, but going forward they will receive fewer exemptions, and the extra costs for companies will be passed on to consumers.