District heating suppliers may adjust prices when switching fuels

15.05.2024

Source: Energie & Management Powernews

According to the Higher Regional Court of Hamburg, district heating suppliers may also unilaterally adjust their prices when it comes to changes in the fuel used. BDEW welcomes the ruling.

The Hamburg Higher Regional Court (OLG) has ruled in response to a complaint by consumer advocates that district heating suppliers may also unilaterally adjust their price adjustment clauses. This applies to changes in the fuel used. The OLG is thus following the case law of the Federal Court of Justice. "The ruling gives district heating suppliers clarity and certainty," explained Kerstin Andreae. The Managing Director of the energy association BDEW believes that planning security is particularly important in the current situation.

"District heating suppliers are faced with a high investment requirement due to the necessary transformation of their networks," explained Andreae. A secure planning horizon is therefore key. "The ruling now provides certainty that district heating suppliers can also unilaterally adjust their price adjustment clauses for investments in a more climate-neutral heat supply," she welcomed.

District heating regulation remains to be adjusted

The heat supply is the biggest challenge of the energy transition because it is still over 80 percent fossil fuel-based, but accounts for two thirds of Germany's energy requirements. The expansion and decarbonization of district heating plays a central role in achieving climate protection targets. "Irrespective of the ruling, there is an urgent need to adapt the AVBFernwärmeV (Ordinance on General Conditions for the Supply of District Heating) to the changing district heating sector," Andreae warned at the same time.

In the course of the transition to a climate-neutral, decarbonized heat supply and to meet the requirements of the Heat Planning Act, both investments in existing buildings and considerable new investments are necessary. Only with long-term, reliable and consistent regulations could heat suppliers refinance their investments at fair conditions.

"The heat transition can only succeed if investments in the heat supply remain attractive and district heating enjoys broad acceptance among citizens," said the BDEW representative, addressing politicians and legislators.

 Author: Susanne Harmsen