Heating expenses in Germany have seen a significant increase since 2021, with tenants now paying hundreds of euros more for gas, heating oil, and district heating. This trend has been highlighted in a recent analysis by the property services company Ista.

The costs associated with heating have escalated for households over the past four years, particularly for those relying on gas, oil, or district heating. Ista's findings provide a comparison of annual heating costs for apartments of varying sizes--40 m², 70 m², and 130 m²--between 2021 and 2024.

Substantial Increase in Heating Costs from 2021 to 2024

In a model apartment of 70 m², energy costs (including hot water) have risen significantly. For gas, expenses saw a 36% jump from 615 euros in 2021 to 835 euros in 2024, largely attributed to a 65% surge in energy prices, which increased from 6.1 cents per kWh to 10.1 cents per kWh. Consumers using district heating are expected to pay an additional 330 euros, reflecting a 42% rise. The most dramatic increase, however, occurred in heating oil, which rose by 47%, with costs moving from 288 euros to nearly double that amount.

Ista's CEO noted that despite occasional reports suggesting a stabilization in energy markets, these could lead tenants to feel unjustifiably secure regarding their heating costs.

Mixed Trends in Heating Costs for 2024

Despite the overall upward trajectory, certain apartment sizes have experienced a decline in costs compared to 2023. For instance, tenants in 40 m² apartments paid approximately seven euros less for gas, while those in 130 m² apartments saw a reduction of 18 euros. The decrease is even more pronounced in heating oil, where costs fell by 64 euros for 40 m², 112 euros for 70 m², and 208 euros for 130 m². Conversely, district heating expenses have continued to rise significantly, with increases of 233 euros for 40 m² apartments and 434 euros for 130 m² apartments.

Impact of the Energy Crisis on Heating Costs

The most substantial spikes in gas and heating oil prices were observed between 2022 and 2023, primarily due to the energy crisis triggered by the Russian invasion of Ukraine. Following Russia's halt of gas supplies, Germany was forced to seek alternative energy sources. The government secured deals with countries like Qatar and the USA for liquefied natural gas (LNG), which proved to be more expensive than the prior Russian gas imports.

The Ista analysis is based on heating cost statements from around three million apartments covering the years from 2021 to 2023, with data for 2024 derived from the Federal Statistical Office's fuel price statistics.

Consumer Uncertainty Around Heating Costs

A survey conducted by Ista and YouGov highlights the considerable uncertainty among consumers regarding their heating costs. More than half of respondents expressed uncertainty about their expected heating expenses. Additionally, approximately 74% noted that they do not receive monthly consumption summaries for heating and hot water, despite having a legal right to such information.

Ista's CEO called for immediate action from policymakers to alleviate the significant uncertainty many tenants face. One proposed solution is the creation of a digital real-time energy consumption tracking system, providing users with accessible information on their energy usage similar to how bank account balances are displayed in online banking applications. However, the implementation of such a system is hampered by current legal limitations.