Tenants in Germany brace for higher heating bills this winter, as energy service provider Ista forecasts significant price hikes for oil and gas. The reason? Consumption levels have increased, and the costs of these resources have soared. Despite a decrease in wholesale prices for heating oil and natural gas, Ista predicts a 61% rise in natural gas costs and a 34% jump in heating oil expenses during the current heating period.
Ista CEO, Hagen Lessing, believes many tenants are falling into a "cost trap," as the supposed security of lower energy prices is an illusion. The company, based in Berlin, reported a 12% increase in private household heating energy consumption since September, compared to the same period last year, adjusted for weather conditions. People are heating more generously this year, Lessing explained.
To help consumers identify their heating behavior, Ista has developed a new monitoring tool – the "Heiz-O-Meter." This publicly accessible tool uses data from around 350,000 German households to provide an up-to-date, representative, and weather-adjusted view of heating consumption standards.
The increases in heating costs are causing concern in the real estate market, particularly in Berlin and North Rhine-Westphalia. Tenants may need to seek alternative heating sources to avoid escalating energy bills. The German gas industry too, is grappling with challenges, from surging production costs to reduced demand from industries due to energy efficiency measures, leading to a potential gas market surplus.
Now, let's delve a little deeper into the financial implications of these price increases, based on Ista's data:
- For a 70 m² apartment, gas expenses have risen by 36%, jumping from 615 euros in 2021 to 835 euros in 2024[1].
- Heating oil expenses have swelled by 47%, with a shift from 288 euros in 2021 to nearly double that amount in 2024[1].
This trend of escalating heating costs in Germany is fueled by a mix of factors, including the energy crisis and market price fluctuations.
[1] Data sourced from Ista's predictions.
