Rising Heating Costs Expected for Consumers in Germany

Consumers in Germany are bracing for increased heating expenses as the heating season comes to a close. Recent data from the comparison portal Verivox indicates that gas customers are facing an approximately 23% rise in heating costs, driven by both weather conditions and market prices. Additionally, despite a decrease in prices, heating oil users are also expected to see a slight increase of around 1% in their overall heating costs.

According to HeizOel24, however, heating oil customers may experience stable or even slightly lower costs. The CEO of HeizOel24, Oliver Klapschus, mentioned that the aftereffects of the price shock experienced in 2022 have now been absorbed.

Verivox further reports that households had to increase their heating usage by an average of 11% from September to March compared to the previous year, taking into account weather data from the German Weather Service. The winter of 2024/2025 marked the fourteenth consecutive mild winter, albeit with notable cold spells.

Last winter, the average gas expenses for a single-family home reached approximately EUR1,858, up from EUR1,515 in the prior heating period. Verivox energy expert Thorsten Storck noted that the return to the full VAT rate of 19% on natural gas in April 2024 significantly contributed to the higher costs. Nevertheless, the record prices recorded during the energy crises of 2022 and 2023 are no longer anticipated.

Regarding heating oil, the average expenses for a single-family home during the last heating season were around EUR1,554, which represents a marginal increase of about 1%. The decrease in heating oil prices has nearly balanced out the increased demand for heating. The actual amount paid by each household will depend on the timing of their heating oil order.

Since the beginning of the year, heating oil prices have been on a downward trajectory, according to Klapschus. Natural gas users are currently paying amounts comparable to heating oil customers. Moreover, wood pellets have recently seen a price reduction.

Data from the energy service provider Techem indicates that the average heating consumption of heating oil, natural gas, and district heating has risen nationwide by 23.6% compared to the previous year. Techem CEO Matthias Hartmann commented that the efforts to reduce energy consumption have diminished, leading many consumers to face increased burdens on their upcoming heating bills amid persistently high energy prices.

In Germany, millions of households rely on oil and gas for heating. A study by the Federal Association of Energy and Water Management revealed that nearly three-quarters of heating systems utilize gas and oil as energy sources. The recently approved Building Energy Act (GEG) by the coalition government aims to gradually replace old heating systems with more climate-friendly alternatives such as heat pumps. However, the anticipated new government formed by the Union and SPD plans to repeal this heating law. The new GEG is expected to be more "technology-open, flexible, and simpler," as stated in the coalition agreement. State-funded heating incentives are set to continue.

The German Tenants' Association emphasized the significant role landlords play in determining heating costs. Landlords have one year to settle utility costs, including heating expenses, with most tenants receiving their bills in the last quarter of the year. A spokesperson pointed out that the increase in CO2 pricing at the start of 2025 will contribute to higher heating costs for households relying on fossil fuels. Factors such as the building's insulation quality, the choice of heating system, and the efficiency of the heating installation are crucial in determining the overall heating expenses, as older heating systems tend to consume more energy.