German district heating prices remain stable over past two years – industry report

District heating prices across Germany have remained stable since 2023, averaging around 16 cents per kilowatt-hour, according to the German Association of Local Utilities (VKU). For a mid-year report, the utility association drew data from 710 sub-networks in the District Heating Price Transparency Platform, launched in 2024 in response to growing criticism over sharp and intransparent cost increases, and found that the vast majority of district heating customers benefit from similar price levels.“The current figures show that district heating customers benefit from a high level of price stability,” said Kai Lobo, the VKU’s deputy managing director. “Unlike individual fuels [such as heating oil or gas], short-term price shocks do not immediately impact heating bills.”The Price Transparency Platform – jointly operated by the industry groups VKU, the Energy Efficiency Association for Heating, Cooling and CHP (AGFW) and the German Association of Energy and Water Industries (BDEW) – covers more than 50 percent of Germany's district heating market. “Customers are gaining an increasingly comprehensive overview of prices, supply structures, and the progress of the heating transition,” said Lobo.District heating could help decarbonise nearly half of all homes in Germany, according to an analysis by consultancy Prognos. As of 1 April, 29 percent of the district heating generation on the transparency platform came from climate-friendly sources, such as unavoidable waste heat. Germany’s municipal utilities have called for an end to heat pump subsidies for homes that could be connected to district heating in the future, arguing that they will need to invest billions of euros in expanding district heating and homeowners should have a better incentive to connect to the infrastructure. “An open approach to heating technologies must not lead to key infrastructure decisions being undermined,” said BDEW head Kerstin Andreae.

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