Since the start of the year, people across Lithuania have been receiving January heating bills, with many reporting a sharp rise in prices compared with last year. The reasons are colder weather and the removal of the reduced VAT rate on centralized heating.

In Kaunas, heating bills are roughly twice as high as in January 2025, according to residents and heat providers.

“I saw the bill and thought that perhaps we should apply for compensation”

– Палаускієне

Kaunas resident Rida Palauskiene said that the heating bill for her 83-square-meter apartment in January totaled 330 euros. «I saw the bill and thought…»

“In December it was about 179 euros. We live in a fairly large apartment, we are warm – we’re not freezing – but the price is enormous,” she added.

Residents of multi-unit buildings in the Dainava district say that the rise in bills is already squeezing family budgets. «It’s higher than last month – about 60 euros more. That’s a lot» – says a resident of the Dainava district.

“It’s higher than last month – about 60 euros more. That’s a lot”

– Resident of the Dainava district

Another resident reports that for her two-bedroom apartment of nearly 47 square meters the bill was nearly 200 euros. «It’s good that I live with my son who pays», she says. «If I had to cover this from my pension, it would be very hard».

“It’s good that I live with my son who pays”

– Another resident

“If I had to cover this from my pension, it would be very hard”

– Another resident

In Kaunas, there has also been a rise in heat consumption: Kauno Energija reports that January consumption was 65% higher than the norm due to low temperatures. «Moreover, the VAT rate rose from 9% to 21%», explains the company’s chief financial officer Virgilijus Motiejūnas. «Together these two factors mean that the bills are roughly twice as high as January last year».

“Moreover, the VAT rate rose from 9% to 21%”

– Virgilijus Motiejūnas

Residents of Alytus are also experiencing a similar rise. While many expected a bigger bill, the scale of the increase was still surprising. «Our apartment is standard, about 60 square meters, and this year the bill was about 180 euros», says a resident of Alytus. «In December we paid a little over 100».

“Our apartment is standard, about 60 square meters, and this year the bill was about 180 euros”

– Resident of Alytus

The CEO of Alytaus Šilumos Tinklai Mindaugas Neverdauskas said that January bills were about 80% higher than December. He noted that February’s bills may be somewhat lower due to the shorter month, but severe frosts at the start of February – when temperatures dropped to -30°C – could affect the high figure in the bills. «I fear making precise forecasts», he says. «Probably it will be about the same as in January».

In Vilnius, January heating bills have also begun arriving. The city’s mayor criticized the decision to scrap the reduced VAT rate for centralized heating, calling it socially insensitive.

Economist Evaldas Stankevicius of Kaunas University of Technology notes that the tax change could have been implemented more gradually. «Perhaps it could have been approached more flexibly», he says. «Instead of immediately removing the relief – from 9% to 21% – the rate could have been increased gradually. It was a very sharp move».

The Ministry of Energy of Lithuania emphasizes that there are other measures to reduce heating costs in the long run: modernization of apartment buildings and upgrading heating networks. «This involves a large-scale renovation of residential buildings, the so-called small modernization of heating points, as well as new measures for municipalities with small boiler houses and high heating prices aimed at upgrading heating networks».

“This involves a large-scale renovation of residential buildings, the so-called small modernization of heating points, as well as new measures for municipalities with small boiler houses and high heating prices aimed at upgrading heating networks”

– Žigimantas Vaichunas

Social organizations note that rising heating bills are increasing demand for assistance. The secretary-general of Caritas Lithuania Milita Žičkutė-Lingienė says that more people are turning to support, including single mothers, the elderly, and people with disabilities. «At the same time we see that this situation affects a much broader group», she adds. «It also affects people with middle incomes».

According to the Ministry of Social Security and Labour, in 2026 Lithuania plans to spend about 80 million euros on subsidies for housing heating costs and hot water.