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  4. Do publicly owned companies have lower district heating prices? An empirical analysis for Germany
 
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2025
Journal Article
Title

Do publicly owned companies have lower district heating prices? An empirical analysis for Germany

Abstract
District heating (DH) networks can provide climate-neutral heating if operated using renewable energy resources. However, their operation is monopolistic and thus without price competition. Publicly owned companies have been conjectured to offer DH at lower prices than privately owned companies, but the evidence is limited. Here, we empirically analyse over 500 DH prices of 184 DH companies in Germany. Controlling for energy carrier, network size and other factors, we demonstrate that prices of publicly owned DH companies are lower by 9-15 €/MWh (10-20 %). Thus, publicly owned DH can make a cost-efficient contribution to climate-neutral heating.
Author(s)
Bänfer, Miguel
Fraunhofer-Institut für System- und Innovationsforschung ISI  
Billerbeck, Anna  orcid-logo
Fraunhofer-Institut für System- und Innovationsforschung ISI  
Plötz, Patrick  orcid-logo
Fraunhofer-Institut für System- und Innovationsforschung ISI  
Journal
Utilities policy  
Open Access
DOI
10.1016/j.jup.2025.101959
10.24406/publica-4693
File(s)
Bänfer_et_al_2025_Do publicly owned companies have lower district heating prices.pdf (1.22 MB)
Rights
CC BY 4.0: Creative Commons Attribution
Language
English
Fraunhofer-Institut für System- und Innovationsforschung ISI  
Keyword(s)
  • District heating networks

  • Price regulation

  • Regression

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