Concerns Rise as Gas Networks Face Decommissioning: Essential Information for Consumers

The German government has announced plans to phase out fossil fuels by 2045, with Mannheim leading the way by planning to decommission its gas network by 2035. This decision has left many residents feeling uncertain about their energy future and potential cost implications.

Mannheim's energy provider, MVV, has indicated that the transition will be gradual, allowing time for residents to adjust. However, the announcement has raised concerns among those directly affected. The Consumer Advice Center has also warned that gas customers may face rising costs, particularly in network fees, as fewer consumers remain connected to the gas network.

As more households opt to switch to alternatives like heat pumps, the financial burden on those who continue to rely on gas could increase. This could disproportionately affect low-income families, who may struggle with escalating energy costs.

With the government pushing for a complete exit from fossil fuels, Mannheim's decision stands as a significant step towards achieving climate goals. However, the MVV has also cautioned that gas prices are expected to rise due to increased network costs and carbon pricing. The limited availability and high costs of green gas alternatives, such as biomethane and hydrogen, further complicate the situation for residential customers.

While there are discussions around the potential for green gases to replace traditional gas supplies, experts point out that the current production of biomethane in Germany is insufficient, and hydrogen remains prohibitively expensive for many households. The MVV has expressed that these alternatives are not viable for residential consumers at this time, although they may be considered for business clients connected to the high-pressure gas network.

In light of these developments, the Consumer Advice Center has praised the transparency of MVV's communication with customers, encouraging homeowners to plan proactively for the future. Those who might need to replace their gas heating systems within the next decade should now consider alternative options rather than invest in new gas heating technology.

The Consumer Advice Center recommends that residents monitor the results of municipal heating plans in their area. For those living in buildings with low energy standards, creating a renovation plan that aligns with their financial capabilities is advisable. This could involve exploring funding opportunities provided by government programs, such as those from the Federal Office for Economic Affairs and Export Control (BAFA) and the KfW Bank.

It is generally more efficient to plan for the replacement of heating systems during warmer months, rather than waiting for a breakdown in the winter. Homeowners should also evaluate the age of their heating systems; those over 15 years old may need to be assessed for replacement options.

The MVV has committed to supporting its customers in navigating these transitions effectively. By communicating changes early, the company aims to reduce the number of households investing in gas heating only to face unexpected changes in the future.

As the government aims for climate neutrality by 2045, other municipalities are expected to follow suit in re-evaluating their reliance on fossil fuels. The timeline for these transitions will vary, with larger cities required to develop heating plans by 2026 and smaller ones by 2028.

Underpinning these changes is the Climate Protection Act, which aims to significantly reduce the use of fossil fuels in Germany. Additionally, the recent EU Gas and Hydrogen Internal Market Directive mandates gas network operators to submit decommissioning plans, which must be integrated into German law by August 2026. Notably, despite the ongoing shift, approximately 48% of households in Germany still rely on gas for heating as of 2023.