Consumer advocates want upper limit for district heating prices

05.05.2025

Source: E & M powernews

An analysis by consumer advocates shows high differences in district heating prices. They are therefore proposing a price cap based on heat pump costs.

The Federation of German Consumer Organizations (VZBV) has compared district heating prices across Germany. According to the study, prices vary widely, with consumers paying 20 cents/kWh or more in just over one in four district heating networks (27%) and even 25 cents/kWh in almost one in ten networks (9%). Figures were collected from 576 heating networks.

"The regional price differences are enormous," criticizes Florian Munder, energy expert at VZBV. Once a household is connected to a district heating network, it is practically impossible to switch providers. On the other hand, district heating is set to become a key technology in climate-friendly heat supply, as it offers many technical advantages. The association is therefore calling for a statutory price cap based on the operating costs of a heat pump. In addition, independent price supervision should be introduced to ensure transparency and fairness.

Promotion to increase efficiency

The association also advocates equal financial support for heating networks and heat pumps in order to create fair competitive conditions. "This is the only way that consumers and the energy transition can benefit equally," argues Munder. The District Heating Ordinance therefore urgently needs to be modernized in order to reduce the cost burden for households and promote the expansion of consumer-friendly heating networks.

While the average price (median) is 17 cents/kWh, a price of 20 cents/kWh would mean annual additional costs of almost 290 euros for an apartment in a typical apartment building. If the price rises to 25 cents/kWh, the additional costs even amount to around 770 euros per year, according to the consumer advocates.

District heating often has prices that are difficult to understand and enormous differences between the various supply areas. According to the VZBV, this often leads to resentment among customers. On the other hand, the central energy supply in a district heating network can often be designed very efficiently and easily converted to renewable energy sources. For example, waste heat from waste incineration plants or data centers is often used. An amendment to the District Heating Ordinance, which was intended, among other things, to ensure greater transparency in the event of price increases, was recently defeated.

Author: Susanne Harmsen