District heating under the microscope: what the competition report shows
The Bundeswettbewerbsbehörde (BWB, Federal Competition Authority) published its final report on the Austrian district heating market on 6 October 2026. The result: once you are connected to a district heating network, it is practically impossible to switch providers. For you, this means: you make the decision between a district heating connection and your own heat pump for many years to come. It deserves a close look at the contract, connection costs and exit options.
What the authority investigated
The investigation was prompted by complaints about high and difficult-to-understand prices. According to the BWB, around one in three households in Austria is heated with district heating. The authority analysed data from 37 district heating companies, and surveyed 49 heat suppliers and 151 industrial customers. It covered almost 290 supply areas with a total of around 6,500 kilometres of pipe network, looking at the financial years 2019 to 2024.
The key findings
Before connection, different heating systems compete with each other, but not afterwards: every network is a monopoly in its area. Long contract terms and high connection costs make customers even more dependent. Many people lack an overview of prices, contracts and bills, and there are no uniform customer rights or complaints offices.
Regarding the price itself, the BWB gives a partial all-clear. During the energy crisis, companies' revenues and costs rose sharply, but profit margins fell when viewed over several years. The authority found no evidence of abusive price increases in the sector.
What the authority recommends
In total, there are 14 recommendations. These include:
- Avoiding compulsory connection to a district heating network where possible
- nationwide uniform minimum rights for customers
- clear information on prices, contracts and bills
- an independent arbitration board in which all companies must participate
- price indices that do not originate from the suppliers themselves
- comprehensible price decisions by the authorities and disclosed costs for network expansion
- easier access for third parties wishing to feed heat into the network
None of this is law yet. The recommendations are aimed at politicians and legislators.
Context: District heating or your own heat pump
District heating is often a good solution in densely built-up areas, especially if it comes from waste heat or renewable sources. However, the report makes the difference clear: with your own heat pump, you remain free to choose your electricity supplier and tariff. On the district heating network, you are tied to one provider and their pricing.
Which solution is better for your house depends on the building, plot and quote. It is not possible to give a general answer.
What you can check now
- Is there a compulsory connection in your municipality? Ask at the Gemeindeamt (municipal office) before planning another heating system.
- Read the contract: term, notice periods, how the price is adjusted and what costs are incurred when exiting.
- Compare connection costs: Compare the one-off costs of the connection with the investment costs of a heat pump, minus the public subsidies in your federal state.
- Calculate running costs: Use the heat pump calculator to estimate what a heat pump costs in your house per year.
If you want a specific quote for a heat pump, you can find installers in your region via our request for quotes.
AO
Sources
- TGA: BWB presents 14 reform proposals — accessed on 7 October 2026
- Bundeswettbewerbsbehörde: Final report on district heating with 14 recommendations (OTS, 06.10.2026) — accessed on 7 October 2026
We state facts in our own words and link to the source. The mentioned authority itself is always legally binding — public subsidy conditions can change at short notice.