What is the pricing based on?
The pricing of district heat is based on the costs of the production and distribution of heat. The price consists of the energy fee and the water flow charge. The energy fee covers variable costs related to heat production and distribution. These costs include, e.g. the costs of the energy sources we use, energy taxes, emission allowances, and electricity consumption. In Fixed-Priced District Heat, we hedge the costs of heat production for the next three years, and that way we can offer unchanged periodic energy fees. The energy fees include the costs of hedging and any weather risk. With the water flow charge, we safeguard disturbance-free heat deliveries and make sure that there is enough heat for everyone even during the coldest times of the year. The charge covers fixed costs of district heat production and distribution, such as investments in production plants and the network, and their maintenance. The amount of water flow charge depends on the type of building and the thermal power needed by the property. In Fixed-Priced District Heat, the water flow charge is the same as with the District Heat product.