District heating prices continue to rise, but government relief packages are having an effect
Created: 12/22/2022, 10:00 am
By: Elke Robert
Everything flashes and flashes: the district heating for Schongau is generated in this extension at UPM.
© Hans-Helmut Herold
In January, district heating prices rose by EUR 30 to EUR 160 net per megawatt hour (MWh).
But the three relief packages are taking effect.
No deductions were debited in December.
Higher payments will probably be due again in January and February, but the deductions will be adjusted retrospectively by March at the latest.
Schongau – Compared to 2021, Schongau’s district heating prices rose by an average of 122 percent this year.
This development is now being mitigated, as Werner Hefele and Florian Hiemer, commercial and technical directors of the public utility company, explained in the works committee.
Customers felt the December emergency aid immediately because they did not have to pay their current advance.
Around 220 euros savings for a household with 12 MWH consumption in 2022
For a four-person household that consumes an average of 12 MWh per year, a total of 120 percent of the September deduction will be deducted in the 2022 annual accounts.
In addition to this saving of 100 euros, an amount of 120 euros is added through the retrospective reduction in VAT to seven percent.
"Both amounts are automatically included in the annual bill, the customer does not have to do anything," says Hefele.
The bill for 2022 should flutter into the house by mid/end of January.
The reduced VAT also applies to the entire year 2023, which further relieves households.
The Schongau district heating price set by the Works Committee for the first quarter rises to EUR 160 net with seven percent VAT, i.e. EUR 171.20 gross.
Heat price brake coming in the new year
The heat price brake decided by the Bundestag means for customers that they pay 95 euros/MWh gross for 80 percent of the previous year's consumption.
20 percent will be charged at the current district heating price.
In the same calculation example (four-person household with twelve MWh annual consumption) 1323 euros are due due to the heat price brake.
If you had to pay the current district heating price of 171.20 euros for the twelve MWh, this would be 731.50 euros more.
Anyone who manages to reduce power consumption by 20 percent can save 411 euros.
In purely mathematical terms, this results in an average district heating price of EUR 110 gross.
A small drop of bitterness: customers will initially have to pay the full price at the beginning of 2023.
According to Hiemer, the settlement of the December aid "worked relatively pragmatically".
But it just takes a few days.
The new calculations should take effect by March 1 at the latest – retrospectively.
How much the customer has consumed or saved will only be shown in the 2023 annual accounts anyway.
It is difficult to predict how the district heating price will develop
However, it is difficult to predict how the further discounts will develop: the Schongau energy price was set at 118 euros per MW/h in the calculation for 2023.
But the indices for the current quarter, which are used to calculate the discount amounts in the second quarter, have not yet been determined.
A downward trend can be seen for gas, but there are price increases for wood and pellets, and these are also included in the calculation of the district heating price.
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According to Mayor Falk Sluyterman, the fact that a customer would have to “freeze to death in his apartment”, as Stefan Konrad feared, will not happen.
Installment payments are possible, "that existed even before the energy crisis".
Hefele: "We will find a solution."
This is what the district heating price increase in Schongau looked like in the 4th quarter of 2022, another very big step for all customers.
By the way: everything from the region is also available in our regular Schongau newsletter.
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