Germany approves heating network reform to accelerate decarbonization

The German Federal Cabinet has approved the key points of a comprehensive heating network package (Wärmenetzpaket) aimed at accelerating the decarbonization of district heating. The reform seeks to balance the interests of energy providers, landlords, and consumers.

Key measures include the introduction of a price transparency platform and enhanced price supervision to combat opaque pricing in the district heating market. To empower consumers, the package introduces a special right of termination for customers if a network operator fails to transition to renewable energy sources. Additionally, customers will be able to more easily reduce their connection capacity to avoid paying for oversized infrastructure.

For landlords, the reform eases the transition to district heating by allowing a monthly increase in tenant costs of up to 0.50 Euro per square meter for significant investments. This modifies the previous cost-neutrality principle. On the legal front, the government plans to regulate price adjustment clauses more strictly, ensuring they are transparent and do not rely on gas price indices.

Separately, consumer advocates are calling for participation in a class-action lawsuit against Eon regarding allegedly unlawful price increases for district heating customers. The court has indicated that certain price adjustment clauses used by the company may be invalid.