Exclusive: Europeans cut down on heating, heed calls to save energy

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Data showed that Europeans reduced the heating of their homes this winter, apparently in response to government calls to conserve energy amid the Ukrainian crisis, as some postponed their operation for about a month and lowered the temperature.

Data from hundreds of thousands of smart thermometers installed in homes across the continent by Munich-based company Tado shows that as temperatures drop, households heed dire warnings about rising heating costs.

People and businesses across Europe are increasing their use of these smart thermometers to monitor how much gas they use. These are sometimes linked to the energy provider’s tariff structure to smooth demand and reduce peak costs. Germany made it mandatory in new buildings.

In the winter of 2021-2022, the proportion of homes with heating turned on across Europe exceeded 90% on November 28. In the previous three years, that limit was exceeded weeks ago, on November 7, 12, and 5, respectively, according to data from Tado, one of several companies active in the fast-growing smart thermometer market.

Reuters graphics

German public authorities lowered temperatures in their offices to a cold 19 degrees. At the University of Frankfurt an der Oder on the Polish border, staff were given blankets to wrap themselves in.

The TADO data shows how households have also cut back.

Average home heating settings are about a degree lower this winter than they have been in previous years, based on the data.

After a stressful period, energy regulators are becoming more relaxed about the prospects for gas supplies in Europe.

German network regulator Klaus Mueller said on Tuesday, after previously asking consumers to deepen their cutoff to prevent serious disruption.

The EU imports 80% of gas and gas and accounts for 22% of Europe’s energy consumption and meets 32% of household energy needs, according to the EU.

But there have been huge efforts to reduce dependence on Russian gas and increase imports from European gas producers such as Norway and the Netherlands, while Germany has rapidly built LNG terminals.

Gas prices in Europe have fallen sharply from a peak in August, as a rush to fill storage pushed the market higher.

Dutch sobriety

Tado’s data, based on readings from 340,000 cloud-linked smart thermometers across Europe, is relatively resistant to the varied weather conditions over the four winters it measured, since it records target temperatures set by households.

These show regional differences but also a clear trend. Dutch households lowered target temperatures by 0.99 degrees Celsius on average compared to last year, while Spanish consumers lowered targets by 0.29 degrees.

In Britain, 79.6% of Tado-connected homes have lowered their temperature settings, while in gas-rich Norway only 47% have done so. And temperatures in Norway decreased by 0.2 degrees Celsius to 20.8 degrees, and in Britain by 1 degree to 18.3 degrees.

European governments, including Germany, have provided billions of euros to help individuals and businesses deal with soaring energy bills.

Reuters graphics

Tado has three million thermostats installed, but comparisons can only be made between thermostats that have been installed in the same location for four consecutive years. As a result, only about 10% of it can be used for data.

There is also the “wealth effect”. In Western Europe, the demographics where thermometers are installed is very wide.

The data is less representative in Eastern European countries, where households with smart thermostats tend to be the most affluent. In Bulgaria, Tado customers reduced temperatures by 0.28% on average.

“About 79% of energy consumption in private homes is heating and hot water,” said Christian Dillmann, Managing Director of Tado. “TV, cooking and lighting are not so important: the important thing is to control the heating and hot water.”

German regulators are concerned that current lower gas prices will make customers less anxious about energy conservation. It’s still too early to tell whether the energy discipline of households is slowing from the TADO data.

“We have to start thinking about 2023/24,” Mueller, the German organizer, tweeted on Tuesday. “We have to keep gas savings, be more energy efficient, build renewables and fill storage.”

Reporting by Thomas Escrit. Editing by Jane Merriman

Our Standards: The Thomson Reuters Trust Principles.

Thomas Escrit

Thomson Reuters

Berlin reporter who investigated anti-vaxxers and COVID treatment practices, reported on refugee camps and covered warlord trials in The Hague. Earlier, he covered Eastern Europe for the Financial Times. He speaks Hungarian, German, French and Dutch.

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