Vienna district heating: price shock and monopoly - what can households expect?

Vienna district heating: price shock and monopoly - what can households expect?

A lot is happening in the area of ​​district heating in Vienna. But with the heat and comfort this use offers, there are also shocking price tags to be discovered. Loud the standard Consumers in this country have little choice when it comes to heat suppliers, as the district heating connection is often tied to the local networks of the respective providers. This is particularly pronounced in Vienna, as the city has a monopoly-like provider, Wien Energie. The connection to a district heating network can even be required by the authorities, which severely limits the options for users to switch.

An additional factor that could be stressful for many households is price developments. The war in Ukraine has driven up gas costs, which is why experts fear costs will double next winter. Mayor Michael Ludwig (SPÖ) is already thinking about increasing the price of district heating - but a decision is still pending. In Vienna, around 420,000 households use natural gas for cooking and heating. Those familiar with the matter are noticing that more and more Viennese are looking for alternatives. The demand for district heating and heat pumps is increasing, marked by a clear trend that has also been taken up by the opposition. The ÖVP Vienna has involved the Federal Competition Authority because of Wien Energie's possible monopoly position.

Expansion and future of district heating

While the pricing policy for district heating is being discussed a lot, Wien Energie is investing heavily in expanding the infrastructure. A new facility is currently being built on Wolfganggasse in Meidling, which will connect 850 apartments to the district heating network. Around 650 meters of new district heating pipes are being laid in Grätzl, and the network is growing by 10 to 20 kilometers every year. In total, the district heating network in Vienna extends over an impressive 1,300 kilometers. The heat is generated not only by combined heat and power plants, but also by waste incineration and waste heat - with two thirds of the energy coming from gas. An ambitious goal is to generate district heating entirely from renewable sources by 2040, which could give Vienna a sustainable boost.

The concept of climate neutrality by 2040, which Austria is aiming for, requires a drastic switch to renewable energies. Currently, 41% of the energy supply in Austria comes from these sources, mainly hydropower and biomass, such as energie.gv.at reported. In the area of ​​heating and cooling, the share of renewable energies will be 39% in 2023. These figures underline the need to rely on sustainable solutions in the district heating sector in order to reduce the burden of fossil fuels.

A look into the future

At a time when more and more Viennese are faced with the choice of whether they want to work with district heating or alternative heating systems such as heat pumps, we can only hope that those responsible will quickly adapt the framework conditions, for example to give citizens the opportunity to defend themselves against rising prices. After all, Wien Energie provides a large number of GUFO stations every day to bring heat to their end consumers - and the city plans to further expand this service.

But while Vienna's district heating looks forward to the heat from the network, it remains to be seen how prices will develop and whether the city can actually meet its goals of sustainable heat supply. The coming months will be crucial here.