Electricity and gas in Holzkirchen are becoming significantly more expensive - price shock for district heating customers

Created: 2022-11-16 06:21

By: Andreas Höger

Lines in the district heating distribution station of a combined heat and power plant (symbolic image).

© Marijan Murat/dpa/symbol image

The news does not come as a surprise, but it is still bitter for many Holzkirchner households: the municipal utilities will increase the prices for electricity and gas very significantly on January 1st.

Anyone who heats with district heating will have to pay more than 50 percent more next year.

Holzkirchen

– The bad news was in the mailboxes in Holzkirchen on Tuesday (November 15).

At the beginning of the coming year, the energy crisis hits the customers of the municipal utilities.

"The developments on the energy markets since the beginning of the Ukraine war have not left us unaffected," says a press release from the municipal company, which is 100 percent owned by the market town of Holzkirchen.

The scarcity of fossil fuels has led to significantly higher purchase prices, and grid fees, taxes and government levies have also risen.

"We very much regret the price increases because they will certainly put a heavy strain on our customers' budgets," says Managing Director Albert Götz, emphasizing that the new prices "do not represent an additional source of income for us, but only pass on increased costs".

In the case of electricity, the work prices for the most important tariffs (basic supply and HK medi) will increase by a gross of 13.69 cents per kilowatt hour, or around 36.5 and 38 percent.

The basic price remains stable.

Götz points out that other large providers in the Munich area have almost doubled their electricity prices.

A small consolation could be the "electricity price brake" planned by the federal government, which should take effect from January.

"There is still no precise data on the scope and specific design," the municipal utilities said.

Götz makes it clear that "we will of course pass on all the benefits contained therein to our customers".

The increases in gas are somewhat milder.

The most important tariffs (basic supply and Holzkirchner Gas-16 medi) will be 26.5 and 32 percent more expensive, and here too the basic prices will remain unchanged.

"Our purchase price on the retail markets has increased tenfold since the beginning of the year," explains Götz.

"We couldn't absorb that anymore." As with electricity, he refers to other providers who have announced price increases of 190 percent and more for gas.

According to Götz, it is also not yet possible to predict how the state “gas price brake” will affect the gas price, which is due to take effect from March 2023.

District heating customers almost have to digest a price shock.

The working price increases by 59 percent, the basic price by 2.7 percent.

Two factors are responsible for this: According to the municipal utility, the Holzkirchner district heating consists not only of geothermal energy, but also of more expensive, "fossil" heat from combined heat and power plants.

In addition, the legislator prescribes that the "price escalation clause", which is part of the heat supply contracts, must also take into account the actual conditions on the heat market.

This clause also works in the other direction, emphasizes Götz: "When the energy markets relax, we pass the falling costs on to the customer." Every opportunity to reduce prices for electricity and gas will also be used.

"After all, we have to remain competitive."

More on this topic can be found here.