Nothing wrong about it as water temperature in pipes is regulated based on the temperature outside if not at building-level (not uncommon) but at least at heat-station providing hot water to several buildings.
When Poland got independent in 1989 and energy prices got real - everybody started buying cheap styrofoam and in a few years we cut our energy usage for heating 3 times. It was CRAZY inefficient because of the pricing of energy vs materials in Warsaw pact.
This "mass styrofoamisation" still haven't happened in Russia to that degree BTW. It's still wasting crazy amounts of energy in all these old commieblocks without insulation.
Modern construction with heavy insulation certainly reduces energy use, but at the cost of air quality. Even more modern construction includes air exchangers, but there's a lot of buildings with insufficient airflow.