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ENERGY

Why some homes in Denmark are more affected by rocketing heating bills

Huge increases in heating bills could hit households in Denmark this year, but not all homes will be affected by additional costs.

A file photo of a district heating power station near Odense. Many households in Denmark are facing drastic increases to their heating bills.
A file photo of a district heating power station near Odense. Many households in Denmark are facing drastic increases to their heating bills. Photo: Tim Kildeborg Jensen/Ritzau Scanpix

Energy prices – particularly oil, natural gas and electricity – are still causing spiking energy bills after significant hikes occurred in 2021.

Many Danish households may have to calculate additional energy costs into their budgets, broadcaster DR writes on Tuesday, with prices going up by as much as 1,000-1,500 kroner per month for some.

While some homeowners will feel the pinch of increased costs, others may actually see savings, DR reports.

“It naturally depends upon energy consumption in individual households, but you should expect 1,000-1,500 (kroner) per month (extra),” Lars Aagaard, director of Dansk Energi, the interest organisation for energy providers in Denmark, told DR.

However, the majority of some 1.7 million Danish homes which are heated by district heating systems are unlikely to be hit by the same expensive increases to their bills as others.

District heating, fjernvarme in Danish, is when heated water generated at a central location such as a power plant is pumped via insulated pipes to houses or apartments, where it provides heating.

Most Danish homes on the district heating system will not be affected by the high energy prices which are being passed on to other homes, according to Kim Mortensen, director of Dansk Fjernvarme, the interest organisation for the national district heating sector, who was also interviewed by DR.

“There are around 100,000 customers who will experience significant price increases and a further 100,000 who will experience small price increases,” Mortensen said.

Those numbers come from a survey of Denmark’s 370 district heating companies conducted by Dansk Fjernvarme.

The district heating companies which are raising prices are spread across Denmark, rather than being concentrated in one part of the country. Customers should therefore check with their service providers as to whether they can expect higher bills.

Companies are more likely to put their prices up if they use fuels such as gas or electricity for their pumps, Mortensen told DR.

That is because those fuels are currently affected by global price increases.

READ ALSO: Why are electricity prices increasing in Denmark?

Companies are more likely to avoid putting prices up if they have several options for their energy sources. This can include companies which use surplus heat from waste or biomass incineration.

According to DR’s report, district heating customers with North Jutland company Brønderslev Forsyning, and with HOFOR, which has 625,000 customers in Greater Copenhagen, are among those who may avoid higher bills.

On the other side of the coin, Gudenådalens Energiselskab, a company which supplies customers in central Jutland towns Ulstrup and Bjerringbro, has warned of price increases up to 185 percent. Up to 2,900 homes could be affected.

Such massive increases can wipe out a significant portion – or all – of a household’s disposable income.

Homes not on district heating networks are also vulnerable to price increases. That is particularly true for houses which use natural gas.

Around 400,000 villas in Denmark use natural gas heaters located on their own premises.

Because the cost of natural gas has increased so much, both individually and district heated homes that rely on it could see the most drastic extra heating costs.

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MONEY

New Danish card charges ‘will be passed on to consumers’

Customers in Denmark can expect prices to rise in shops when a new charge for using the country’s Dankort card payment system takes effect on April 1st.

New Danish card charges 'will be passed on to consumers'

Nets, which owns the Dankort network on which most bank payment cards in Denmark operate, is set to introduce an additional 8.9 percent charge for businesses which accept Dankort from the beginning of next month.

The charge will “ultimately” be passed on to customers, according to Jannick Nytoft, the director of the national interest organisation for store owners, De Samvirkende Købmænd (DSK).

“Ultimately there is only one place where the price [increase] can be recovered, and that’s with the customers because the costs [for businesses] will go up,” Nytoft said to newswire Ritzau.

Nets has raised the price for accepting Dankort in physical transactions following a decline in the total number of Dankort transactions.

READ ALSO: Dankort: What is Denmark’s payment card and how is it different from other card types?

Figures from the Danish central bank, Nationalbanken, show that the number of Dankort transactions fell by 27 percent last year, a trend related to the increasing popularity in Denmark of digital wallets such as Apple Pay.

If the costs of running the Dankort system don’t fall along with revenue from transactions, the cost per transaction must increase, Nets has said.

Nytoft said it was a “real shame” that Nets has found it necessary to raise the price for Dankort.

“Most Dankort cards are not compatible with Google Pay and Apple Pay. Only [bank] Danske Bank has them in there. We need a lot more Dankort on Google Pay and Apple Pay,” he said.

Nets is pushing for all banks to allow their Dankort payment cards to be used on Google Pay and Apple Pay.

At least two banks — Arbejdernes Landsbank and Nordea – have said they plan to do this no later than 2025.

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