Baltic States – CIS, Energy, Estonia, EU – Baltic States, Gas, Legislation

Natural gas is the main raw material in Estonia in central heating systems, forming around 42% of it.

Home-Owners' Confederation council member Priit Värk said that the price of natural gas sold to Baltic states is higher than for Western member states. Eesti Gaas's current gas purchase agreement with Gazprom is in valid till 2015 and the import price is up to Gazprom, there is not feeling of security for future, he said.

Värk that Estonia has two possibilities of strengthening their trading position at the natural gas price talks. First, the Estonian gas market, which consists only of one supplier, Gazprom, needs real competition in the form of alternative gas sources like liquefied natural gas (LNG) and in the future, the Polish shale gas.

"On the other hand, we have to keep our feet on the ground and take into consideration the fact that in mid-term perspective also Russian natural gas forms the majority of the imported gas. Thus another option at the price talks is to focus at the EU member states joint purchase," said Värk.

The Homeowners Confederation sent a letter to European Energy Commissioner Günther Oettinger, compiling about high central heating prices. The Committee's response admitted there was a problem but they had no fast solution either. An important provision that was stressed was to favour competition at the gas market, said Värk.