Natural gas prices are fluctuating wildly, making heating more expensive for households, as the reform of the heating law stalls. Federal Economics Minister Katherina Reiche missed the January deadline for key points, fueling uncertainty. Experts call for stronger promotion of heat pumps as a cheaper alternative.
Gas prices on European energy exchanges dropped by up to 20 percent in the first two days of this week, but meteorologists forecast higher temperatures for Europe and the USA. Such fluctuations are the new normal in global energy trading, raising costs for utilities through hedging transactions.
Norwegian natural gas currently covers nearly half of German demand, supplemented by LNG mainly from the USA. The EU Commission advises broadening procurement to reduce dependencies, though this is costly. A natural gas emergency reserve is necessary to handle shocks like potential attacks on pipelines.
Long-term, natural gas will become a cost trap due to rising CO₂ prices if the EU continues climate protection efforts. Heat pumps are proven cheaper than fossil fuel heating; their sales rose significantly in 2025, primarily in new buildings.
Owners of existing homes are highly uncertain due to disinformation campaigns against the Building Energy Law and heat pumps, as well as the Black-Red coalition's announcement to repeal the law. Minister Reiche (CDU) has failed to provide answers and missed the end-of-January deadline for key points. The Union and SPD want a new law, but impatience is growing ahead of an important date.
A new subsidy program for heating switches is essential to overcome the higher purchase price of heat pumps.
