Amsterdam housing corporations and Vattenfall yet to agree on prices for heat networks

Amsterdam housing corporations, energy company Vattenfall, and Westpoort Heating, the deliverer of heating in Amsterdam, have not yet agreed on the high costs of connecting heat networks. Alderwoman Zita Pels (Energy transition) and Aldermen Rutger Groot Wassink (acting councilor for Energy Transition) announced in a Council letter on Tuesday.

Energy producer Vattenfall raised the prices for district heating by over 30% to around 800 euros a year, which the corporations say is too high. The municipality will discuss the issue with the parties involved in the hope of reaching a solution.

Corporations announced on March 15 that they wouldn't connect any homes to the heating networks. This caused the municipality to enter discussions with the parties involved. "The three parties seemed to be reaching an agreement after days of intensive discussions. Sadly, Vattenfall has withdrawn from the initial offer."

One of the causes was the emergency law that outgoing minister Rob Jetten (Climate and Energy) wants to use to restrict the costs of city heating. "That is good news for the customers on one side, but on the other side, the minister is not taking into account the real costs of heating companies," Vattenfall said. "As a result, Vattenfall will probably no longer be able to fully charge the actual costs for district heating."

The Amsterdam Association of Housing Associations (AFWC) thinks the lack of an overarching solution is especially annoying for the tenants, writes the interest group. They claim that the tenants will be stuck in insecurity for a longer time.

The municipality wants to make far-reaching financial commitments "so that the invoice from the energy transition does not get dropped on tenants with the lowest incomes."

This would provide tenants with certainty about the price of heating for the next ten years, and the transition to sustainable forms of energy could be continued, according to the council members.

Pels added that this was a disappointing result. "The municipality will map out alternative options as quickly as possible so that we can compensate tenants for this year and will continue to emphasize to the government that a financial solution is needed as quickly as possible for this year and long term."

The municipality, housing corporations, Vattenfall, and Westpoort Heating, are united in Warm Amsterdam. The project aims to connect 10.000 homes to an existing heat network.