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Heating markets

The Finnish heating market is unregulated and competitive. Competition means that the customers are basically free to choose the heating and cooling method they want to use. Non-regulation means that Finland does not have specific legislation concerning the selection or pricing of heating, cooling or heating and cooling methods.

Heating methods that are freely available for customers on the market include district heating, electric heating and various property-specific solutions based on heat pumps and renewable and fossil fuels. Cooling solutions include district cooling, heat pumps and electricity-based cooling equipment. Although the basis is customers’ freedom of choice, many political decisions, such as taxes, subsidies, emissions control and regulation, have an impact on the attractiveness and lucrativeness of these different energy solutions and services.

Companies engaged in the district heating business are among the key operators in the heating market in addition to the customers. District heating companies’ heat procurement or their obligation to join customers or heat producers in the networks are not regulated, either. These companies aim to gain well-paying customers, and they procure heat from sources that have availability at the most favourable prices at a time when the customers need heat.

Almost all district heating companies are willing to buy heat from customers or other producers who have a range of waste heat available. Heat is purchased when it is technically feasible and economically viable for the customers using the district heating, the district heating company and the party selling the heat.

District heating is always a local business and if you have questions about your own district heating, you should contact your local district heating company.

In addition to district heating companies, businesses that engage in the sale of electricity and take part in electricity network operations play a significant role in the heating market.

There are also many kinds of service operators in the heating market, such as various equipment manufacturers and consultants offering their services to customers without restrictions. Therefore, the service business related to heating and cooling is a rapidly developing area where some of the energy companies are also active.

Competition between various solutions and service operators in the heating market ensures efficient operations, reasonable pricing and a high quality of services for customers.

If there are any adverse phenomena or operators in the market with respect to effective competition or the treatment of customers, the authorities can deal with any misconduct in the market on the basis of general legislation on consumer protection, competition and energy efficiency. This possibility forms the ultimate boundary to the operation of companies.

Our expert on this topic

Mikko Vuorenmaa

Senior Advisor

Energy Market

Mikko Vuorenmaa

Senior Advisor

Energy Market

+358 50 535 2566

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