German Municipal Companies Demand Urgent Action on Energy Policy to Prevent Investment Slowdown
Politics

German Municipal Companies Demand Urgent Action on Energy Policy to Prevent Investment Slowdown

The Association of Municipal Enterprises (VKU) has called on the federal government to act decisively and swiftly in energy policy. “We have reached a point where further hesitation will become a brake on investment” said VKU chief executive Ingbert Liebing to the outlets of the Funke media group in the Montag editions. He added that companies, municipalities and citizens urgently need clarity.

Liebing criticised the fact that, despite autumn announcements, central projects are still not part of the legislative process and that key details remain missing. He warned that the promised “winter of decisions” risks becoming a winter of avoidance. While the government has made a breakthrough with the power plant strategy and reached a preliminary agreement with the EU Commission that includes planned tenders for new gas plants, the absence of a bill leaves the agreement merely a political promise without a framework that allows investment.

To prevent supply concentration, the VKU urges the use of smaller, tender‑free procurement mechanisms. “Supply security comes from diversity” Liebing explained. “Competition is needed, and municipal utilities can provide that if the framework is set correctly”.

The VKU also demands reforms to the Building Energy Act, also known as the “Heating Act”. All climate‑neutral heat and heating technologies must remain equally viable. Legal provisions should not exclude options or pre‑set solutions, otherwise municipalities cannot develop economically sound heating plans.

Criticism extends to regulations for district heating. The cost‑neutrality requirement of the heat‑supplier ordinance currently hampers the shift to district heating, whereas heat pumps are not subject to this restriction. “For a successful heating transition, we need the same framework conditions for all technologies” Liebing said.

Furthermore, landlords should be allowed to increase rents by up to 50 cents per square metre per month when switching to district heating, just as they can with heat pumps. “Climate‑friendly district heating must not be disadvantaged” he added. The VKU now urges the Federal Ministry of Justice to implement the relevant agreement from the coalition contract swiftly.