The maximum price that energy suppliers are allowed to charge from heating network customers is falling sharply. Because the price of so-called district heating depends on gas prices. These gas prices are now much lower than they were a year ago, according to a report from the Authority for Consumers and Markets (ACM), which regulates this price.
Next year, energy suppliers will be allowed to charge a maximum of 46.69 euros per gigajoule. This year the figure is almost double (€90.91).
In practice, no one paid this much due to the government imposing price caps on gas and electricity. This upper limit was intended to alleviate the burden of the rapid increase in energy prices on the consumer. An upper limit of 47.38 euros per gigajoule was also applied to heating networks, provided that consumption remained below a certain level.
Customers of a heating network that uses residual heat from industry or waste incineration, for example, also pay an annual fee for the connection. The maximum price will increase by 12.5 percent to 618.82 euros from January 1.
No to competition
Since competition was not possible, ACM regulated the prices of heating networks. Customers depend on heating networks where heat is provided by only one supplier. ACM reviews the appropriateness of price increases annually.
Examinations conducted in 2023 showed that almost all licensed providers were below the legal maximum rate with their fixed and variable tariffs, the official said. “ACM will also ensure that in 2024 suppliers only charge the maximum price if necessary due to the costs involved, and heat suppliers will make this transparent to their customers.”
Source: NOS
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
