Cartel Office examines: District heating provider targeted for market abuse

Cartel Office examines: District heating provider targeted for market abuse

The use of district heating as an important part of the energy transition in Germany continues to be made more difficult by non-transparent and opaque prices. Although district heating is an efficient method of generating low-carbon energy, consumers are often faced with opaque pricing structures that make accurate cost calculations impossible. This means that consumers, once connected to a district heating network, are usually obliged to pay high and inexplicable prices, without having the opportunity to switch to a cheaper provider.

A central problem in the district heating market is the so-called “natural monopoly”, where there is usually only one provider of district heating in a certain area. This leads to a lack of competition and consumers trapped by possible price increases. The Federal Cartel Office has opened proceedings against several district heating providers because there is a suspicion that price increases are not based on actual cost developments but are inappropriate, which has led to significant price distortions.

The Federal Association of Consumer Organizations (vzbv) has found that pricing in the district heating market is non-transparent and varies greatly from region to region. In order to uncover these grievances, vzbv began analyzing the price data from district heating networks in Germany, where enormous price differences between different regions were found. The traffic light coalition is discussing taking political measures to increase transparency in the district heating market. A first approach could be the introduction of a transparency platform to enable consumers to compare prices.

In view of the complex market situation and the lack of regulation by authorities such as the Federal Cartel Office and the Federal Network Agency, the consumer advice center has filed a class action lawsuit against district heating providers such as EON and HanseWerk Natur. These lawsuits are intended to help make the district heating market in Germany more consumer-friendly and ensure that consumers receive fairer prices and transparent information. Despite ongoing investigations and legal action, the situation for consumers who rely on district heating remains challenging and opaque.