Vattenfall stops building heat networks for existing homes

Vattenfall is stopping the construction of new, large heating networks that heat already built homes. The energy company fears that the costs will be so high that it will be impossible to charge affordable rates without incurring losses. As a result, plans to connect 7,000 to 15,000 homes to 'district heating' will not go ahead, says Ahmed Abdisalaam of Vattenfall Warmte.

Vattenfall's division for heating networks, which are an alternative to natural gas heating, is under "extreme financial pressure," according to Abdisalaam. As with other heating companies, demand fell because the Dutch continued to use less heating after the energy crisis. At the same time, costs rose.

The energy company also criticizes an emergency law with which the then Minister for Climate and Energy, Rob Jetten, wanted to keep heating affordable. According to Abdisalaam, this measure ensures that heating companies "have structurally less coverage of the costs."

A spokesperson for the new minister, Sophie Hermans (Climate and Green Growth), calls the decision very unfortunate. "We need them badly." Vattenfall has previously indicated that it wants to stop heating networks for already-built homes. The spokesperson emphasizes that they will continue with new construction.

Hermans will certainly talk to the company to ask what it is up against. However, the government cannot provide relief everywhere, according to the ministry. The Cabinet will also continue with the Heat Act, which Vattenfall criticized.

The municipality of Amsterdam, which wanted to make many homes natural gas-free with heating networks from Vattenfall, calls the decision disappointing. "It's a painful consequence of years of delay and no structural solutions from the government," responds alderman Dirk de Jager (Sustainability). He wants to talk to Hermans because, especially in this inevitable energy transition, residents must be able to count on affordable and sustainable alternatives to heat their homes.

In Amsterdam, Vattenfall already came into conflict with housing corporations this year over the sharply increased costs for the construction of heating networks. The corporations decided in March to stop new connections to the heating network because they would saddle tenants with considerably higher fixed costs for their connection. In some cases, that would result in a higher bill than for gas.

Vattenfall also wants to talk to Minister Hermans. "This is a national issue, not a local one," the energy supplier states.