In the period from 2004 to 2008, no illegal exaggeration occurred in the pricing of district heating, the Finnish Competition Authority (FCA) estimates.
However, the average price level of district heating companies has proved to be high, when account is taken of the companies’ profitability relative to the business risks involved.
According to the FCA, it could be necessary in the future to regulate the prices of district heating.
The FCA has investigated the pricing principles of the ten largest district heating companies. The authority can intervene in the matter only if the prices are clearly exaggerated. The FCA reports that they have finished their studies for the time being.
The FCA started to look into the pricing principles of the district heating sector after the substantial price increases noted in 2009.
According to the authority, major district heating companies have a dominant position vis-à-vis their clients.
Consumers have seldom had any alternative heating solutions, as on the basis of the Land Use and Building Act, all new buildings may have been required to join the district heating network.