Heated atmosphere in the district heating market – general conditions, price mechanisms and complaints

Regulatory difficulties: Yesterday’s AVBFernwärmeV for the challenges of tomorrow

A central point of the revision is the redesign of price change clauses in accordance with Art. 24 AVBFernwärmeV, which are decisive for price adjustments during the term of the contract. Furthermore, attractive general conditions for digital innovations, consumer protection and efficient network expansion are to be created. The BMWK’s draft bill provides initial approaches, but has been met with significant criticism from the industry. The industry associations in particular consider it to be unbalanced. 

Focus on price escalation clauses: BGH ruling forces suppliers to review and adjust

Price escalation clauses are a proven instrument for dynamically adjusting prices to market developments. They are based on neutral indices such as the capital goods index, wage cost index or energy price index and must adequately reflect both the suppliers’ cost development and market conditions. The District Heating Ordinance defines clear requirements for this, such as the equal weighting of the cost and market elements.

Numerous consumers have filed lawsuits against excessive price adjustments with the support of the Federation of German Consumer Organizations. A recent decision by the German Federal Court of Justice (“BGH”) on September 25, 2024 declared some clauses on the energy price invalid as they violate the transparency requirement of the AVBFernwärmeV. At the same time, the court determined that consumers must reassert their claims within three years.

This results in an obligation for suppliers: they must ensure that their clauses comply with the legal framework. Reviewing and, if necessary, adjusting the price calculation formulas thus becomes an urgent task. 

Common goal: Creating a fair framework for the heating transition

The debate on the amendment of the District Heating Ordinance shows that district heating is not only a technical component of the heating transition, but also an economically and legally sensitive one. Consumers, suppliers and regulatory authorities must work closely together in order to create a sustainable, forward-looking and fair framework.

Your added value through our expertise

In order to successfully implement the complex requirements of the AVBFernwärmeV, well-founded support is essential. This is where we enter the picture: 

• Review and verification of your price escalation clauses in order to minimize legal and economic risks.
• Support in selecting suitable indices as part of the price clauses.
• Design and optimization of calculation formulas in order to ensure compliance with the latest legal requirements. 
• Conformity checks that guarantee you legal certainty in accordance with the revised AVBFernwärmeV.

With our many years of experience in the energy sector, we help you to act in a legally compliant and future-oriented manner. Together, we create the conditions for a sustainable, fair and economically stable heating industry. Take advantage of our expertise to actively shape the heating transition in your company!