Overview

• Household gas heating costs rose by 23% during the 2024/25 winter season, driven by colder periods and the reinstatement of the full 19% VAT on natural gas in April 2024.
• Heating oil expenses increased by approximately 1%, as lower oil prices were offset by higher consumption due to frost episodes.
• Average heating consumption across oil, gas, and district heating systems surged by 23.6% compared to the previous year, reflecting Germany's continued reliance on fossil fuels.
• The Gebäudeenergiegesetz, which mandates transitioning to climate-friendly heating systems, faces potential revision by the incoming Union-SPD government to make it more flexible.
• Roughly three-quarters of German heating systems still depend on gas or oil, underscoring the challenges of reducing emissions and transitioning to renewable energy sources.