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

Miguel Bänfer, Anna Billerbeck and Patrick Plötz

Utilities Policy, 2025, vol. 95, issue C

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.

Keywords: District heating networks; Price regulation; Regression (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:95:y:2025:i:c:s0957178725000748

DOI: 10.1016/j.jup.2025.101959

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