District heating is becoming more expensive – higher rents are expected

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As we face a winter, with electricity prices expected to reach new heights, many are turning their eyes to district heating – which is seen as a cheaper option.

But according to the industry organization Energiföretagen, the district heating companies are flagging that they will have to raise their prices unusually much for next year.

– The situation now is such that the district heating companies are naturally affected by the general situation with increased competition around fuels, above all biofuels. We also see increased costs for transport. We see the general inflation, which of course affects the district heating companies as much as everyone else, says Lina Enskog Broman, district heating manager at Energiföretagen.

The tenant association was concerned

The increased district heating fees are expected to lead to higher rents, something that worries the Tenants’ Association ahead of the upcoming rent negotiations.

– I am very worried that this could lead to people not being able to afford to stay. We have the highest inflation in 30 years. We have increased electricity costs, which above all affect household electricity, and now increased district heating costs on top of this, says Marie Linder, chairwoman of the Tenants’ Association.

Big price differences

How big the price increases will be varies depending on where in the country you live. Vattenfall, which has district heating networks in Motala, Uppsala and Nyköping, among others, will raise its prices by around 4.5 percent. Stockholm Exergi will raise its prices by 8.1 percent and Eon by 13 percent. For some of Eon’s business customers in Malmö, however, the increase is 20 percent.

The price differences are due to the district heating companies having different local conditions, according to Lina Enskog Broman.

– You have different fuels in different district heating networks. You have various investments and other things that you need to manage.

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