We are pleased to see that we have reached a new normal, with stabilized prices and price increases for district heating as well as the most common competing alternatives on the market. This is a good foundation for us to work with our customers to develop district heating. Listening to our customers and proceeding based on their requirements is essential for us. We made several improvements and launched new products and services in 2024 based on our dialogue with customer.

1.    Updated pricing model

Conditions have changed since we last updated our pricing model in 2018. The new pricing model we developed in 2024, to be introduced in January 2025, is designed to:

• Be more precise by more clearly reflecting the district heating used by customers and rewarding those who use it most efficiently.
• Be adaptive by better reflecting external factors and the district heating system’s structure.
• Encourage a decrease in power and energy requirements. The pricing model will benefit customers who make power and energy savings, particularly in colder weather.

2.     District Heating Operating Net

During the year we launched District Heating Operating Net (Sw: Fjärrvärme Driftnetto) on a wider scale for our housing association and corporate customers, which was well received. We are particularly proud of our collaboration with John Mattson, a real estate company, which has invested in District Heating Operating Net for a third of its properties, thereby ensuring cost-efficient, long-term, sustainable district heating deliveries for its properties. District Heating Operating Net is a financial product that enables our customers to invest in a property’s existing district heating system, with the aim of reducing the property’s variable operating costs. Investing in an operating net license lowers district heating prices over a 20-year period, which increases the property’s net operating income (savings) from day one. No new technical installation is required. Existing facilities are used, which also minimizes risk for customers in terms of ownership and operation.

3.    Heating for environmental reporting

Many of our customers have highly ambitious climate targets for energy purchases, which fall under the customer’s Scope 2 reporting. In some cases, the targets are so forward looking that emissions from energy purchases need to be reduced faster that what can be achieved by our extensive investment program to reduce emissions. In light of this, we will be launching a new district heating product in 2025 – Heating for Environmental Reporting – which is specifically designed for customers focused on climate targets. This will be offered until the time our district heating’s climate performance is so good that the product is no longer necessary. We also hope to build permanent negative emissions into the product in the future, as regulations and reporting requirements evolve.

4.    Developed services

We continued to develop our services to enable our customers to fully control their energy management, easily and transparently. With our solutions – from new district heating centers to smart digital solutions – the customer is in control. With Heat Optimization, our customers can adjust their indoor temperature directly from their mobile phone and create their ideal comfort level. With our On-Call Monitoring, customers have a reliable partner that monitors the heating system digitally and acts quickly – around the clock and year-round – if something should happen.