At the end of 2023, the German competition authority, known as the Bundeskartellamt, initiated proceedings against seven municipal utilities and district heating suppliers. The investigation focuses on allegations of abusively excessive price increases occurring between 2021 and 2023. The authority is particularly scrutinizing the use of price adjustment clauses across nine different district heating networks.

Preliminary findings from the Bundeskartellamt suggest that unlawful price adjustment clauses have been utilized in four of the networks, negatively impacting consumers. The authority plans to continue proceedings for these four networks, as well as for the remaining five. However, the names of the companies involved will remain undisclosed until the conclusion of the proceedings.

Andreas Mundt, President of the Bundeskartellamt, emphasized the monopoly position of district heating suppliers, noting that consumers cannot switch providers. This situation subjects these suppliers to strict competition law prohibitions against abusive practices. Mundt indicated that future regulatory focus on the district heating sector is necessary, advocating for greater transparency in pricing and costs, as well as clearer legal guidelines to enhance competition law enforcement.

The legal framework governing price adjustment clauses in district heating contracts is outlined in the Ordinance on general conditions for district heating provision. This ordinance stipulates that price adjustment clauses must consider both the supplier's cost developments and current market conditions equally. However, the Bundeskartellamt's investigations suggest that, in the case of four networks, the market conditions were undervalued, leading to excessive price increases that exceeded legal limits.

Additionally, the authority found that in three of the four networks, the cost elements used in the price adjustment clauses did not accurately reflect the actual costs incurred by the suppliers. Some cost-reducing factors were overlooked, resulting in higher-than-allowed price adjustments. Consumers affected by these practices also retain the option to pursue civil lawsuits for violations of the relevant legal requirements.