Consumers to face increased gas heating expenses, in part due to inefficiencies in energy usage.

Revamped Roundup on Soaring Heating Costs in Germany

Germany's gas consumers are bracing for a 23% rise in heating costs, according to Verivox. As the 2024/2025 winter drawing to a close, households are paying more for their heat, all thanks to bad weather and price hikes. Oil customers are only experiencing a slight increase.

In the analysis provided to the German Press Agency, Verivox revealed that gas customers faced a significant bump in their heating bills. This jump can be attributed to weather-related and pricing factors. Contrarily, oil customers are estimated to pay around one percent more overall, which translates to a slight increase. HeizOel24, however, envisions stable to decreased costs for oil customers as the shock waves from 2022's prices have since subsided.

Households Face the Heat

Over the past six months, households had to ratchet up their heating by around 11%. This, as per Verivox, considering data from the German Weather Service. The winters of recent years have been comparatively moderate, albeit with occasional frosty spells, the weather service stated. Last winter, the average gas cost for a single-family house was about 1,858 euros, versus the 1,515 euros in the previous heating season.

Thorsten Storck, Verivox energy expert, explained that colder temperatures and the resumption of the full VAT rate of 19% on natural gas in April 2024 drove up household gas costs. Nevertheless, the record-breaking energy crisis prices of 2022/2023 won't resurface.

Oil Prices and Consumption

Averaging around 1,554 euros, the heating oil costs for a single-family house last winter experienced a one percent increase. This marginal upswing was almost balanced out by the decrease in heating oil prices, which in turn increased the demand for heat. HeizOel24's CEO, Oliver Klapschus, revealed that heating oil prices have been on a downward spiral since the year's beginning.

Oil and gas customers heating their homes with similar expenses, as per Klapschus. Wood pellets, meanwhile, have become more affordable lately.

Energy Consumption on the Rise

Heating oil, natural gas, and district heating consumed 23.6% more nationwide compared to the previous year, Techem disclosed. Despite consumers' energy conservation efforts, Techem CEO Matthias Hartmann noted that high energy prices would saddle households with additional burdens during the upcoming heating cost settlement.

Germany is home to millions of apartments heated with oil and gas. The Federal Association of Energy and Water Industry reports that about three-quarters of heating systems rely on gas and oil as energy sources.

The GEG, or Building Energy Act, targets the gradual replacement of old heating systems with eco-friendly alternatives such as heat pumps. The anticipated coalition government of the Union and SPD plans to abolish the Heating Act, aiming for a more tech-friendly, flexible, and streamlined regulation. The state heating subsidies will persist.

Landlords Hold the Keys

Landlords have a full year to settle additional costs, including heating costs. The majority of tenants received their settlement in the last quarter, according to the German Tenants' Association. A spokeswoman highlighted that the increase in the CO2 price beginning 2025 will translate to higher heating costs for households using fossil fuels.

A spokeswoman for the Tenants' Association pointed out the crucial role landlords play in determining heating costs. They factors include the state of a building's insulation, choice of heating system, heating system efficiency, and the energy carrier. Energy-guzzling old heating systems will continue to drive up costs.

Initially published on April 21, 2025 and updated since

Additional Insights:

Global energy trends and regional market dynamics will influence natural gas prices, impacting the German market.
European gas prices might vary due to local market dynamics.
Heating oil prices are influenced by global oil prices, which can be affected by economic uncertainties.
Germany's shift towards renewable energy could make traditional heating methods more expensive, while economic trends may stabilize or reduce some costs.
Efficient building practices need to be encouraged to mitigate costs in the long run.
Despite the slight increase in heating oil costs for a single-family house, households are still paying more for their heat due to higher prices and harsh weather conditions predicted by Verivox for the upcoming winter of 2025.
In contrast to gas customers, oil customers are estimated to pay around one percent more overall, according to HeizOel24, due to the subsiding shock waves from 2022's prices.
Verivox energy expert, Thorsten Storck, attributes the significant increase in household gas costs to colder temperatures and the resumption of the full VAT rate of 19% on natural gas in April 2024.
The Federal Association of Energy and Water Industry reported that heating oil, natural gas, and district heating consumed 23.6% more nationwide compared to the previous year, which translates to higher heating costs for households.

Rising heating expenses for natural gas customers in Germany projected at approximately 23%, largely attributed to climatic conditions.

Consumers to face increased gas heating expenses, in part due to inefficiencies in energy usage.