Impacts of Mandatory Local Heating Connection

10. Heat supply
10.1 The customer has determined an annual heat demand of 50 kWh per sqm of living space. The customer’s requirement includes not only the heat demand of the individual residential units but also the heat losses between the house and apartment transfer stations.
10.2 The customer covers this heat demand exclusively from the WEA (heat generation system) operated by the municipal utilities. This does not constitute a minimum purchase quantity regulation.
10.3 The municipal utilities are obligated to provide the amount of heat required by the customer according to clause 10.1. The determination of the heat demand used by the municipal utilities as sizing of the WEA is the responsibility of the customer. The municipal utilities are not liable for incorrect sizing or inaccurate heat demand if the customer’s data was incorrect or faulty.
10.4 The customer has the possibility, each year on January 1, to request an adjustment of the agreed heat output by up to 50% by sending a corresponding written statement (adjustment request) to the municipal utilities. The customer’s written adjustment request must be received by the municipal utilities at least 4 weeks before the adjustment date according to the first sentence.
10.5 If the customer requests a reduction of the agreed heat output by more than 50% or terminates the heat supply contract, a proof must be attached to the written adjustment request or termination statement showing that the customer will replace the reduced or ceased heat output by using renewable energy sources (e.g. a corresponding order confirmation). The reduction of the heat supply demanded by the customer according to the first sentence shall take effect on the first day of the month following a period of 2 months after receipt of the written adjustment request by the municipal utilities. Termination of the heat supply contract becomes effective at the end of the month following a notice period of 2 months after receipt of the termination statement by the municipal utilities.
10.6 ...
10.7 The heat price consists of a consumption price and a monthly basic price at the time of the start of the heat supply according to clause 3.3 as well as a metering price. The respective prices, the amount of the advance payment for the first consumption year, and the price adjustment clause result from the remuneration regulations: price sheet according to appendix 2.
10.8 The monthly basic price and the metering price according to clause 3.3 must be paid even if no heat is consumed. This applies regardless of the reason for the non-consumption. An adjustment of the heat output according to clauses 10.5 and 10.6 does not lead to a reduction of the monthly basic price. If the obligation to provide heat begins or ends within the billing period, the monthly basic price and metering price will be calculated on a pro-rata basis.
...

13. Term and termination
13.1 This contract comes into effect upon signature.
13.2 The contract has a term of 15 years from the start of the heat supply according to clause 3.3, as otherwise the development and investment costs of the municipal utilities regarding the WEA (heat generation system) cannot be amortized.
13.3 The customer or the municipal utilities may terminate the contract with a notice period of nine months before the expiration of the contract term agreed under clause 13.2. If no termination occurs, the contract is extended for further periods of five years each under maintenance of the aforementioned notice period.

Appendix 2: Price sheet
Validity 01.04.2020 - 31.03.2021
€
Consumption price in [ct/kWh]: 7.33
Basic charge in [€/m2 * a]: 6.49
Metering service in [€/a]: 88.06

Prices are tied to the following pricing indices and their base values:
- Fuel element natural gas: natural gas index at delivery to industry
- Market element light heating oil: Rhine area
- Compensation element electricity: average of monthly mean values of the hourly contracts EPEX
- Valid CO2 price for the emission of one ton CO2 (2021: €25/t, 2022: €30/t, 2023: €35/t, 2024: €45/t, from 2025: €55/t)
- Monthly wage: collective agreement for supply companies
- Investment goods index: index of commercial products overall

Cost assumption 50 kWh/sqm per year:

Consumption price: 50*150 = 7500 kWh/a * €0.0733 = €550
Basic charge: 150 sqm * €6.49 = €973
Metering service: €88

Total: €1611 = €134/month

One advantage is also that you save space in the house connection room, which is hard to price, but is definitely a bonus.

Even if we reduce the heat demand to be supplied to zero, because we want to generate our heat, for example, using a heat pump, do we still have to pay the fixed price?