Starting in January, residents of apartment buildings in the Czech Republic using district heating systems will be able to realize significant savings on their heating bills, potentially amounting to hundreds of Czech korunas per year. This change is a result of a new regulation that alters the pricing structure for district heating, providing cost relief to up to 200,000 households.

Previously, residents who maintained lower indoor temperatures during the heating season were required to pay at least 80% of the average consumption cost per square meter of heated space within their building. However, with the implementation of the new regulation in January 2023, this minimum payment will be reduced to just 70%. The revised pricing structure is expected to particularly benefit those who maintain indoor temperatures between 17 and 20 degrees Celsius, while other households maintain temperatures between 20 and 22 degrees Celsius.

The motivation behind this regulatory change, as stated by the Czech Minister of Local Development, Ivan Bartoš, is to promote energy efficiency and incentivize investments in insulation. Households residing in buildings with higher energy consumption, such as old panel buildings without insulation or those with inadequate insulation, are expected to benefit the most. It’s estimated that there are approximately 40,000 such households in the country.

It’s important to note that while heating costs based on apartment size constitute one component of the overall heating cost, the regulatory change primarily impacts the minimum payment per square meter. The maximum cost will remain double the average consumption cost per square meter within the building.

Additionally, the new regulations will introduce changes to the payment calculation ratio, factoring in both apartment size and energy consumption, as well as the energy efficiency of the building. Building owners will be motivated to invest in insulation and other energy-saving measures, with the base heating cost component being determined based on the energy efficiency class of the building (ranging from A to G). The variable spot consumption component will be based on actual consumption.

This regulatory adjustment is anticipated to promote energy conservation, encourage households to invest in energy-efficient upgrades, and address concerns about the perceived inequity in the previous pricing structure. It will ensure that households maintaining lower indoor temperatures are not unfairly burdened with higher heating costs compared to those maintaining higher temperatures, ultimately leading to greater energy savings and improved energy efficiency in residential buildings.

Article by Prague Forum