Anticipated Increase in Heating Costs for Kamp-Lintfort Residents: Price Hike Expected to Be Steep
Take a Peek at Kamp-Lintfort's Energy Scene!
It's no secret that Kamp-Lintfort is diving headfirst into using district heating as an eco-friendly energy source for its heat plan—but lately, it's been costing its residents a pretty penny.
A recent stir arose due to dramatic hikes in heating cost settlements for 2024 compared to 2023, especially impacting district heating customers. On average, a 70-square-meter model apartment will be shelling out 27 percent more for heat and hot water. According to Moers-Newsletter, this translates to an increase from €830 in 2023 to €1055 in 2024.
Gas prices also saw an increase, up by 7 percent from €811 to €864. Interestingly, oil heating customers actually received some cash back. The Moers-Newsletter attributes these developments to the termination of energy price brakes and VAT reductions. However, the spotlight is also on district heating customers, who often find themselves at the mercy of their suppliers due to local monopolies. The editorial team has reached out to Stadtwerke Kamp-Lintfort for more insight.
How Much More Will 2024's District Heating Bill Cost?
In Kamp-Lintfort, residents who rely on district heating can brace themselves for a significant jump in their bills in 2024. The utility shares that the gross work price was 12.54 cents per kilowatt hour as of December 31, 2023. "Starting April 1, 2024 (after the increase in VAT), the gross price climbed to 15.02 cents. That's a whopping 20 percent increase, or one fifth more than the previous year."
The Fade Away of Government Aid
The Stadtwerke explain the price hike this way: The federal government has given relief to citizens by offering a one-time emergency aid payment, limiting prices to 9.5 cents per kWh gross for 80 percent of the previous year's quantity, and slashing VAT from 19 to 7 percent until March 31, 2024 to soften the blow from the Ukraine war. However, these relief measures are now coming to an end, allowing the full force of the price increase to hit customers. "Due to the adjustments in the pricing calculation, which often uses one- to two-year average price indices, the price reduction is only now slowly taking effect," the Stadtwerke note. District heating providers have limited flexibility when it comes to adjusting prices as they must keep pace with market fluctuations.
The average net price increase for the mixed price for 2024 stood at 7.3 percent. By the beginning of 2025, the mixed price had dropped by approximately 6.3 percent.
"On the surface, the gross increase seems steeper," the Stadtwerke concede. The increase for 2024 is 14.7 percent, while the decrease for 2025 amounts to only 2.4 percent. If the temporary customer price cap of 9.5 Ct/kWh is factored in, the increase from 2024 to 2023 is more noticeable. The Stadtwerke refer to their website (https://www.swkl.de/fernwaerme) for a transparent breakdown of the price development.
The Price of Gas
"We haven't changed the prices for all tariffs at the turn of the year from 2023 to 2024," it is stated. A 8.5 percent increase was observed in the gas price (gross) from 2023 to 2024, exclusively due to the hike in VAT from 7 percent to 19 percent as of April 1, 2024. Additional taxes and charges, as well as network charges, have fluctuated but have mostly offset each other or incurred drawbacks on procurement costs. As of January 1, 2023, "we reduced our gas prices by 5 percent (gross)," the Stadtwerke report, despite the now fully applicable VAT rate of 19 percent.
Monopoly Finger-Pointing
Consumer advocates have raised concerns about potential monopolies among district heating providers, questioning their pricing strategies. The municipal utilities respond by acknowledging that this is a political decision beyond their control. They emphasize that there is no mandatory connection or usage obligation for district heating in Kamp-Lintfort, giving each resident the freedom to choose their preferred heat source for their home. The municipal heat planning serves as the blueprint for the expansion of the district heating network, designating areas for priority expansion. "Presently, our attention is focused on examining and prioritizing local construction projects, with the city center of Kamp-Lintfort being the main concentration," they share.
The Demand for a Price Cap on District Heating
In response to calls for a price cap on district heating from consumer advocates, the municipal utilities point out the complexity of developing such a cap if it's to be based on the operation costs of a heat pump. They encourage specialist associations to provide a clear, realistic comparison outlining the advantages and disadvantages of both district heating and heat pumps to aid political decision-makers.
In Kamp-Lintfort, discussions have emerged about the rising costs of district heating, with residents facing a potential 20% increase in their bills for 2024. Meanwhile, gas prices have also surged by 8.5%, making it an opportune time for people to consider alternative energy sources, such as sports, for heating their homes, if feasible and economically viable.
