Germany’s heating costs surge over 30 pct in 2023 despite price cap

BERLIN, Nov. 6 (Xinhua) — Heating costs in two-family and multi-family homes in Germany surged by 31 percent year-on-year last year, according to a study released Wednesday by the Heat Monitor from the German Institute for Economic Research (DIW Berlin).
“The high heating costs have weighed heavily on many private households in 2023, despite the gas price cap,” said Merve Kuecuek, study author from the Climate Policy Department at DIW Berlin.
The study is based on heating cost data from 170,000 two-family and multi-family homes. Residential buildings heated with district heating were also included in the calculations.
With price pressures expected to ease in the future, the report emphasizes that increased investment in energy efficiency and upgrades to heating systems will be essential to reduce carbon dioxide emissions.
“In the interest of private household budgets and climate protection, long-term investments are now in demand, such as energy-efficient building renovations and upgrades to heating systems,” said study author Sophie M. Behr.
Germany introduced a gas price cap in 2022, which took effect in 2023 as part of a broader set of measures to shield households and businesses from surging energy prices. Under the scheme, the government subsidizes a portion of gas costs. The cap applies to a set amount of energy usage, with consumption above that threshold priced at market rates. ■