District heating to become more expensive in Nuremberg for the first time

September 12, 2023
Source: Energy & Management Powernews

On October 1, 2023, N-Ergie increases the district heating prices. Last year's turbulence in the energy markets have an impact.

"The price adjustment results from the contractually stipulated district heating price formulas, which measure cost developments over a period of twelve months," a statement from the utility said. Thus the distortions of 2022 at the energy markets, which were released by the war in the Ukraine, would be reflected now with one year delay with the district heating.

Since the Nuremberg district heating is produced partly also with natural gas, this factor plays a supporting role with the computation. Although, according to N-Ergie, gas prices fell again at the beginning of 2023, but the previously prevailing high price level could not be compensated again. Because of the energy price brake, however, the price increase would only have a limited effect on customers. In addition, the company assumes that the prices for district heating will fall again next fall.

The gross working price for the kilowatt hour of heat is rising significantly in the standard product N-Ergie Wärme mainly as a result of high procurement costs: from the current 10.88 cents/kWh to 14.55 cents/kWh. The apportionment prices fall by a total of 0.33 cents/kWh, the transfer prices remain stable.

Price brake cushions increase

To protect against sharply rising prices, the German government has introduced energy price brakes that also apply to district heating. For most consumers, especially in the private sector, the following applies: for 80 percent of the projected annual consumption, 9.5 cents/kWh must be paid. The full kilowatt-hour price applies only for the quantity exceeding this. Due to this price cap the largest part of the current price increase is caught by the price brake.

For a Nuremberg three-person household supplied with district heating in a multi-family house with an annual consumption of approximately 12,000 kWh warmth means according to computations of N-Ergie that the monthly heat costs rise under consideration of the price brake in the standard product of up-to-date approximately 120 euro to 128 euro. As announced by the Federal Ministry of Economics, the price brakes are to be extended until April 30, 2024. Thus the customers could profit still up to end of the heating period from these reliefs.

Anlagen with power-heat coupling like the combined heat and power station Sandreuth, from which approximately 90 per cent of the Nuremberg long-distance heating come, reach an efficiency of more than 85 per cent. Already today, around 30 percent of Nuremberg's district heating comes from non-fossil sources. N-Ergie plans to generate district heating in a completely climate-neutral manner by 2035.

Author: Günter Drewnitzky