Vattenfall doubles rate for district heating, price ceiling softens blow

The rate for heating networks at Vattenfall rises to 76.45 euros per gigajoule, 94 percent more compared to the current price. Due to the price ceiling that the cabinet is working on together with energy suppliers, the price for a gigajoule of district heating will remain limited to 47.38 euros, 20 percent more than the current rate, with average consumption.

The price ceiling will apply up to a consumption of 37 gigajoules. According to Vattenfall, a customer uses an average of just under 28 gigajoules. This means that a customer with average use will pay about 375 euros more for heat compared to 2022, says the energy supplier.

No choice

Heat networks transport heat that is released during waste incineration or industry, for example, to homes and business premises. Customers with such a connection cannot choose for themselves which supplier they want. That is why the Netherlands Authority for Consumers and Markets (ACM) annually determines the maximum rate for district heating that may increase.

Vattenfall is publishing the new rates in anticipation of the ACM’s announcement, but expects to remain below the legal maximum. The heat rates are always linked to the gas price, but customers of a heat network may never pay more than customers with a gas connection.

Purchase more expensive

According to the originally Swedish energy supplier, the approximately 150,000 customers with a connection to the heat network paid more than 500 euros less than Vattenfall’s gas customers last year. The gas price at Vattenfall has increased 2.6 times in one year.

The price for heat that Vattenfall purchases is also rising due to the increased gas and electricity prices, a spokesperson explains. “For example, if you look at a waste-to-energy plant where we purchase heat, you will see that it also supplies electricity. It has become much more valuable, which means that the price of heat also rises.”