Prices for district heating in Germany: Consumers need more transparency and comparison options

Prices for district heating in Germany: Consumers need more transparency and comparison options

According to a report by www.geb-info.de, the prices for district heating in Germany differ significantly. According to a study by the Federal Association of Consumer Organizations (VZBV), private households with single-family homes in the largest heating network in Cologne paid 27 cents in the third quarter of 2023, more than twice as much as in the largest network in Halle, which paid 12 cents.

Consumers can hardly compare prices
The lack of comparison options for district heating prices makes it difficult for consumers to assess whether the heat price in a network is high or low. This becomes particularly relevant when more and more consumers have to replace defective oil or gas heating systems in accordance with the new heating law. Board member Ramona Pop also emphasizes that district heating in urban areas is considered an important building block for the heating transition. However, long contract periods, a lack of competition and low transparency standards can lead to acceptance problems among consumers.

Methodical approach to price monitoring for district heating
The VZBV collects price data from 31 district heating networks from all over Germany on a quarterly basis. Effective prices – the total annual price in relation to the heat consumption – are used for the price comparison. In the future, market monitoring plans to regularly publish the price developments of selected district heating networks so that consumers can get an idea of ​​how high their district heating price is in comparison to the networks examined.

Impact and analysis
The large price differences for district heating in Germany show that transparency and comparison options for consumers urgently need to be improved. This is particularly important because district heating is considered an important building block for the heating transition. A consumer-friendly amendment to the District Heating Ordinance and the establishment of a nationwide price supervision as well as a Germany-wide heating network database could help give consumers more insight into pricing. In addition, class action lawsuits such as those against the district heating providers Eon and Hansewerk could help to strengthen the interests of consumers and combat exorbitant price increases.