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End of monopoly prices in sight? New platform should make costs for district heating transparent

2024-02-12T13:05:17.719Z

Highlights: New platform should make costs for district heating more transparent. Around 150 district heating companies will take part in the platform. It remains to be seen whether the transparency created will have an impact on prices for consumers. According to BDEW, around 42 million apartments in Germany are heated with district heating, therefore 15.2 percent share of the energy source is from 20. dpa and 20.5 percent share from 20 dpa. The price is usually based on the price of gas, even if another energy source. is used to generate district heating.



As of: February 12, 2024, 1:53 p.m

By: Robert Wallenhauer

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District heating should become an important component of the heating transition.

But so far they have been frustrated with cryptic pricing.

That should change from April.

Frankfurt/Berlin - For many district heating customers, heating billing at the beginning of the year is a nuisance.

The additional payments often amount to several hundred euros and sometimes drastic increases.

Consumer associations (vzbv) and tenant organizations speak of excessive price increases.

They should not only be due to the increased energy prices in connection with the Ukraine crisis.

The biggest point of criticism: the lack of transparency in pricing on the monopoly market.

A new platform will soon help customers out of the cost trap.

The pricing platform for district heating providers is intended to improve transparency for consumers when it comes to heating costs.

The Federal Association of Energy and Water Industries (BDEW), the Association of Municipal Companies (VKU) and the District Heating Working Group (AGFW) wanted to launch the joint platform in April.

BDEW boss Kerstin Andreae announced this in an interview with the news portal

Table.Media

at.

“Around 150 district heating companies will take part.

This means we cover almost the entire market.”

Heat in the pipe: A platform is intended to make the prices for district heating more transparent.

© Thomas Banneyer/dpa

Comparison platform for district heating is coming in April 2024

With the new offer, the associations are responding to the criticism of district heating prices.

So far there have been big differences that are difficult for customers to understand.

As a result of Russia's attack on Ukraine and the subsequent energy crisis, energy companies were able to significantly increase their profit margins.

At least that is the suspicion.

When you take a closer look at the regionally different prices, the evidence becomes clearer.

The labor prices per kWh for district heating differ depending on where you live.

However, they alone do not determine the final price that customers pay.

The energy suppliers use various formulas for calculations that are difficult for customers to understand.

Various price indices are used, which are included in the formula.

Which values ​​are taken into account and which are not is at the discretion of the provider.

In addition, the price is usually based on the price of gas, even if another energy source is used to generate district heating.

District heating comparison: Hope for lower prices increases

“We know that there is a problem with the transparency of prices,” says BDEW boss Kerstin Andreae.

“Comparability is difficult.

The industry will now tackle this.” The district heating providers will state their prices on the online platform “in a standardized form” so that they can be easily compared.

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It remains to be seen whether the transparency created will have an impact on prices for consumers.

The monopoly of the local district heating providers means: “It is actually not possible to change providers with district heating because, unlike gas, district heating uses closed networks,” explains Andreae in the

Table.Media

interview.

However, in her own words, she hopes that the new offer will also lead to lower costs for consumers.

The BDEW boss encouraged consumers to defend themselves against high prices because: “The suppliers are bound to set appropriate prices.

They cannot set prices arbitrarily as they are subject to antitrust price controls.”

According to the BDEW, around six million of the almost 42 million apartments in Germany are heated with district heating.

The share of the energy source is therefore 15.2 percent.

The data is from 2023.

(with material from dpa and AFP)

Source: merkur

All news articles on 2024-02-12

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