Heat network may be 67% more expensive, consumer organizations concerned | Money

The Netherlands Authority for Consumers and Markets (ACM) determined on Thursday that the maximum costs for district heating of an average household may increase by 67%. This maximum increase is related to the gas price, which is currently at a record high.

However, ACM calls on heat network suppliers not to increase costs by this maximum percentage. They must have a good reason to raise their rates. The watchdog also indicates that it will investigate tariff increases.

As a major supplier, Vattenfall has already announced that it will not pass on the maximum price increase. The former Nuon opts for about half of the maximum increase, so about 37-38%. Taking into account government compensation, the energy giant thinks that a household will lose about €13 extra per month.

Huge setback

“A huge setback,” Consumers’ Association director Sandra Molenaar calls the increase. “These people can’t go anywhere. They are stuck with one supplier and can only hope that their supplier will not demand the maximum.”

For example, heat is extracted from waste plants for heat networks.  That heat may have arisen from waste, but you still pay the main price.

For example, heat is extracted from waste plants for heat networks. That heat may have arisen from waste, but you still pay the main price.

“If heat suppliers do increase to the maximum, a household with district heating will pay an average of €2542 next year, compared to €1523 in 2021,” calculates Cindy Kremer, director of Vereniging Eigen Huis.

Compensation

The organizations argue that prices should not rise more than the amount of government compensation for the higher energy bill. “If heat suppliers demonstrably find themselves in financial difficulties as a result, the government must provide help. For example with a temporary operating subsidy,” says Molenaar.

The Consumers’ Association, Eigen Huis and the Woonbond have been advocating for years that the link with the gas price should be released. This will also happen in the announced new heat law, but it is not expected to come into effect before 2023.

off gas

For the coming years, the new cabinet wants to further discourage the use of gas by taxing it more heavily. Households with a heat network will therefore also pay more and more, even though they have already switched off gas.

Many heat network suppliers do purchase gas or electricity to be able to produce their heat. Industry association Energie-Nederland is also in favor of a different calculation method for the rates, one that is more in line with the costs actually incurred.

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