District heating is considered an alternative to heat pumps – but consumer advocates criticize non-transparent prices and monopoly positions. Economics Minister Habeck now wants to enforce clear rules and fair prices.
Federal Minister of Economics Robert Habeck is calling for more transparent and fair prices for district heating customers. “You can’t change the district heating provider like you can change the gas provider or the electricity provider,” said the Green politician. According to Habeck, an industry comparison platform could be helpful, as could an arbitration mechanism in disputes. “That would strengthen trust in district heating.”
Around 15 percent of households in Germany and many industrial companies are connected to the existing district heating network. In addition to the heat pump, district heating should play the decisive role in climate-friendly heat. According to the law, the predominantly municipal operators of the networks must present a plan in the next few years on how they can replace oil, coal and gas with climate-neutral energy sources. District heating is usually generated in combined heat and power plants, in which the waste heat from electricity production is used, for example, to heat residential areas in metropolitan areas.
Change of provider because of Monopoly position hardly possible
District heating is an alternative to heat pumps for many households. Anyone who becomes a customer of a district heating producer usually puts themselves at the mercy of a monopoly and is practically unable to change provider. Consumer advocates also criticize that the prices of district heating producers are not transparent and sometimes fluctuate considerably from municipality to municipality. In addition, the high energy prices of 2022 and 2023 are only now being felt by customers.
Habeck said that cross-financing in municipalities with profits from the division for other areas reduced the acceptance of district heating. “We should treat each other fairly.” The district heating supply regulations will be reformed, and in the future prices will no longer be based primarily on the price of oil. The government and the industry would have to find another solution here. “But I haven’t found the golden egg yet.” In the summer or autumn, however, the first solutions will be presented at a district heating summit.