Proposed Changes to Heating Law Could Increase Consumer Costs

The ongoing debate surrounding the heating law in Germany has intensified, with recent proposals suggesting its potential repeal. This has raised concerns about the possible financial implications for consumers.

Negotiations among political parties are set to resume, focusing on the future of the heating law, also known as the Building Energy Act. This discussion comes in light of a report indicating that members of the working group on Transport, Infrastructure, Building, and Housing have reached a consensus on the idea of abolishing the current heating law. However, this agreement is not yet finalized and will be evaluated by senior party negotiators. Furthermore, any proposals will be subject to financial scrutiny before implementation.

The suggested new legislation aims to shift the focus from short-term energy efficiency measures for individual buildings to a more comprehensive assessment of emission efficiency. This change would eliminate many of the detailed regulations regarding heating system replacements that have drawn criticism. Nonetheless, it has been stated that subsidies for heating systems will continue under any new framework.

Environmental experts have voiced concerns regarding the proposed shift in focus, particularly emphasizing the importance of maintaining energy-saving principles in the energy transition. One expert highlighted that both coalition parties seem to be swayed by the housing sector's demands, which may jeopardize fundamental energy-saving initiatives. The expert warned that without a push for enhanced energy efficiency from the new government, consumers could face increased heating costs.

Low-income households are disproportionately affected by rising energy prices and the volatility of oil and gas markets. A lack of commitment to energy efficiency in the negotiations could have dire consequences for economically vulnerable segments of the population, potentially exacerbating existing inequalities.

There are ongoing calls for a reform of the heating law to ensure that energy efficiency remains a priority in building policies. A recent study emphasized that improving energy efficiency is crucial for ensuring affordable heating costs while achieving climate goals. Advocates stress the need for a significant policy shift to guarantee that all households can manage their heating expenses in the future and that climate objectives are met.

Since the new Building Energy Act came into force in early 2024, it has aimed to enhance climate protection in the building sector through a gradual phase-out of oil and gas heating systems, supported by substantial state funding. Existing heating systems are still permitted to operate, allowing for a smooth transition.