The end of the heating season is approaching, and with it, the first signs of higher heating costs for those who rely on gas heating. A recent analysis by Verivox, a comparison portal, has revealed that gas heating expenses have surged by approximately 23% due to weather conditions and price fluctuations. This significant increase is attributed to the reinstatement of the full VAT rate of 19% on natural gas in April 2024.

• Verivox estimates that households required an average of 11% more heating from September to March compared to the previous year.
• The winter of 2024/2025 has been noted as the fourteenth consecutive mild winter, albeit with distinct cold spells.
• According to Verivox energy expert Thorsten Storck, lower temperatures and the reinstatement of the full VAT rate of 19% on natural gas in April 2024 have contributed to rising costs for households.

The average heating oil costs for a single-family home were approximately EUR1,554 during the last heating season, reflecting a slight increase of around 1%. While some experts from HeizOel24 suggest that oil users may experience stable or slightly lower costs, others warn that the effects of the price shock from 2022 have not been fully absorbed.

In addition to lower temperatures, the reinstatement of the full VAT rate of 19% on natural gas in April 2024 has contributed to rising costs for households, according to Thorsten Storck. However, the extreme prices seen during the energy crises of 2022 and 2023 are no longer applicable. “The average heating oil costs for a single-family home were approximately EUR1,554 during the last heating season, reflecting a slight increase of around 1%,” noted Klapschus from HeizOel24. “Since the beginning of the year, heating oil prices have been on a downward trend, according to Klapschus from HeizOel24. Gas users are now paying similar amounts to those using heating oil.”
Wood pellets have also seen a decrease in price, providing some relief to consumers.

“Efforts to reduce energy consumption have diminished, indicating that many consumers will face additional burdens when settling their heating bills,” said Techem’s CEO.

The new Building Energy Act (GEG), often referred to as the heating law, aims to facilitate a gradual transition from outdated heating systems to more climate-friendly alternatives, such as heat pumps. The prospective coalition government of the Union and SPD intends to repeal this heating law, proposing instead a new GEG that would be more flexible and technologically neutral. Landlords have one year to settle service charge accounts, including heating costs. Most tenants receive their statements in the last quarter of the year, as noted by the German Tenants’ Association. A spokesperson emphasized that an increase in the CO2 price starting in 2025 will also lead to higher heating costs for households relying on fossil fuels. Key Points:
* Gas heating expenses have surged by approximately 23% due to weather conditions and price fluctuations. * The average heating oil costs for a single-family home were approximately EUR1,554 during the last heating season, reflecting a slight increase of around 1%. * The reinstatement of the full VAT rate of 19% on natural gas in April 2024 has contributed to rising costs for households. * The new Building Energy Act (GEG) aims to facilitate a gradual transition from outdated heating systems to more climate-friendly alternatives.

Definitions:

Heating System:

A system used to provide warmth to a building.

VAT (Value-Added Tax):

A type of tax levied on the value added to goods and services.

In Germany, millions of residences utilize oil and gas for heating. A study by the Federal Association of Energy and Water Management indicates that nearly three-quarters of heating systems rely on these fossil fuels. Highlights:
* The heating season is approaching, and with it, the first signs of higher heating costs for those who rely on gas heating.

What Can Households Do?

Households can take several steps to mitigate the impact of higher heating costs:

• Optimize energy efficiency by maintaining or upgrading their heating systems.
• Consider alternative heating sources, such as heat pumps or biomass.
• Improve insulation and draft-proofing to reduce heat loss.

By taking proactive measures, households can reduce their energy consumption and lower their heating bills.

What Can Landlords Do?

Landlords can also play a crucial role in reducing heating costs for their tenants:

• Conduct regular maintenance and inspections of heating systems.
• Consider upgrading to more efficient heating systems or alternative heating sources.
• Provide tenants with accurate and timely information about heating costs and energy consumption.

By taking these steps, landlords can help reduce their tenants’ heating costs and create a more sustainable living environment.

What’s Next?

The future of heating costs in Germany remains uncertain, with the prospective coalition government of the Union and SPD intending to repeal the new Building Energy Act (GEG). However, the effects of the price shock from 2022 have not been fully absorbed, and households may face additional burdens when settling their heating bills. Landlords will need to take proactive steps to reduce their tenants’ heating costs and create a more sustainable living environment.