As of: January 24, 2024, 3:43 p.m
By: Ulrike Hagen
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The consumer advice center warns: Anyone who is connected to a heating network must expect price increases of up to 50 percent in 2024 - and is calling for price controls.
Kiel – With the expiry of price controls and the reduction in VAT for heat, the current year could hold big surprises for consumers who are connected to a municipal heating network.
A current comparison by the Schleswig-Holstein Consumer Center shows that heating costs could sometimes increase by more than 50 percent.
The organization is now calling for measures to protect consumers and an amendment to the district heating regulation.
“If heating networks based on the example of Denmark are to play a key role in the energy transition, something has to happen,” said Tom Janneck, head of the energy transition and sustainability department at the consumer advice center, to IPPEN.MEDIA.
With the expiry of the price brake and VAT reduction, heating costs for consumers connected to the heating network could rise by up to 50 percent in 2024.
(Symbolic image) © Imago/Zoonar
Heat prices in Schleswig-Holstein: Significant increases in 2024
Even though energy prices have been moderate recently, it will be really expensive for many consumers in 2024, according to consumer advocates who warned of severe price increases in the new year.
“A series of adjustments, such as taxes and the end of the energy price brakes, are hitting at the same time,” explains Tom Janneck in an interview with IPPEN.MEDIA.
“Quasi-monopoly position”: Consumers are at the mercy of price increases from the heating networks
According to a study by the Federal Association of Consumer Advice Centers, prices in the large heating networks were already high in the third quarter of 2023, between 12 cents and a very expensive 27 cents per kilowatt hour.
But they were capped by the price brakes.
After their elimination and the increase in VAT, it will now become even more expensive.
A problem for consumers who are at the mercy of price increases by heating network providers, who “virtually have a monopoly position,” as Janneck says.
Top prices in the heating network in Flensburg – with compulsory connection for consumers
Because: In contrast to consumers outside the heating networks who can look for a cheaper provider, this is not possible for those connected to a heating network.
In particular, where the price cap of 9.5 cents/kWh was comparatively advantageous for households, the costs rise significantly.
The increase is particularly noticeable in some heating networks.
The consumer advice center is currently receiving a particularly large number of complaints about the Flensburg municipal utilities.
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If heating networks, following the example of Denmark, are to take on the leading role in the energy transition, something has to happen.
Tom Janneck, Head of the Energy Transition and Sustainability Department, SH Consumer Center
According to calculations, the heat price in the Flensburg network is 20.17 ct per kWh, a top price for the application under consideration compared to other networks such as Kiel with 14.49 ct/kWh or Neumünster with 14.86 ct/kWh.
“In Flensburg there is a compulsory connection and use with a connection rate of over 90 percent of all households,” says Tom Janneck, head of the energy transition and sustainability department at the VZSH.
“A compulsory connection and use is often cited as a reason to be able to offer heat at a comparatively cheaper price,” continues Janneck, “that doesn’t seem to work in Flensburg.”
Price explosion in heating networks: Consumer advocates demand transparency and price supervision
“So that not every heating network provider can do what they want,” the consumer advice center is now calling for more transparency, “for example through an internet portal through which the providers have to clearly present their prices,” as well as “efficient price supervision,” explains the energy expert.
This would make it much easier for the responsible supervisory authority, politicians and consumers to identify and specifically address providers with conspicuous prices.
The Schleswig-Holstein Consumer Center has created an overview of the district heating prices in Schleswig-Holstein for the years 2023 and 2024.
The list is constantly updated and is based on the price sheets provided by the heat suppliers.