District heating: Ministry wants more cost transparency for district heating customers

District heating: Ministry wants more cost transparency for district heating customers

District heating is set to play an increasingly important role in the heating transition. However, consumer advocates have long been demanding that the market become more consumer-friendly.

The Federal Ministry of Economics wants to ensure greater cost transparency for district heating customers. In addition, consumer protection against excessively high district heating prices is to be strengthened, as the ministry announced in response to a request. An amendment to the district heating ordinance is intended to achieve significant competition- and customer-friendly improvements for more transparency and flexibility in supply conditions. The news magazine “Politico” (Wednesday) was the first to report on the plans.

Specifically, the plan is to expand the publication obligations of district heating supply companies. In future, a sample invoice will be published on the Internet, from which the application of any price change clause can be clearly understood, as can be seen from the draft bill amending the regulation.

From the point of view of consumer advocates, it is currently difficult for consumers to understand how district heating prices are determined. The prices for district heating in Germany vary considerably from region to region.

The ministry’s draft contains some progress for private consumers, said Thomas Engelke, head of the Energy and Construction team at the Federal Association of Consumer Organizations. However, one key point is completely missing: nationwide price supervision. The district heating market represents the strongest monopoly in the energy sector. Nevertheless, there is no central price supervision by a federal authority. Consumers must be effectively protected from “black sheep”.

District heating is heat that is not generated in the house, but comes from a power plant or heating plant in the area. Water is usually heated there and then piped into the houses through insulated pipes.

Source: Stern

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