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Federal Government Adopts Key Principles for Heating Network Package

The German Property Federation (ZIA) considers the Federal Government's decision on the key principles for the heating network package a decisive step for a successful heat transition with increased transparency and consumer protection.

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Federal Government Adopts Key Principles for Heating Network Package. Illustrative image generated using artificial intelligence (AI). The image does not depict a real property, person or event and is not a documentary photograph. Labelled in accordance with Article 50(4) of the EU AI Act.

The Federal Government has adopted key principles for a comprehensive heating network package, which has been positively received by the German Property Federation (ZIA). This decision signals a clear commitment to the expansion, conversion, and new construction of heating networks, which, from the association's perspective, represents an essential contribution to achieving a successful heat transition. The planned focus on affordable heat supply, increased transparency, and improved consumer protection is considered groundbreaking. This should significantly increase acceptance for the heat transition among owners, landlords, and tenants, as commented by Iris Schöberl, President of the ZIA.

The key principles paper addresses a multitude of demands that the ZIA has put forward over a long period for a fair, transparent, and accepted heat market. Special attention is given to the planned regulations on price adjustment clauses. In future, price adjustments are to be more closely aligned with the actual cost structures of suppliers. This includes passing on falling costs to customers as well as rising costs.

Improved Consumer Protection and Transparency

Another positive aspect is the envisaged right to adjust service. This will enable customers to adapt their connection capacity to changing needs in the future. This applies, for example, to adjustments resulting from efficiency measures or the use of renewable energies. Analogously, a special right of termination will be introduced. This is intended to facilitate the switch to a renewable heat supply if the existing heating network does not meet the legal requirements. Ms Schöberl stresses the necessity of transparent prices, comprehensible rules, and effective control to strengthen trust, particularly in view of the natural monopoly in district heating networks.

In this context, the real estate industry welcomes the planned introduction of an independent price transparency platform and the strengthening of price supervision at federal level. Furthermore, the establishment of a sector-specific consumer arbitration board can help resolve disputes between suppliers and customers more efficiently and with less bureaucracy.

Demands for Financing the Heat Transition

However, the ZIA sees a need for action concerning the funding of the Federal Funding for Efficient Heating Networks (BEW). This programme represents the central funding instrument for the expansion and transformation of heating network infrastructure. To meet climate policy goals and the requirements of the Heat Planning Act, the ZIA demands an increase of the BEW to at least EUR 3.5 billion annually. Ms Schöberl concludes that the positive measures contained in the heating network package must be consistently implemented during the further legislative process.

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