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ENERGY

What do Denmark’s politicians want to do about high energy prices?

The rocketing costs of energy in Denmark are becoming an increasingly important issue, with political parties set begin discussing possible relief measures.

A Danish electricity socket. The country's political parties have begun discussing how to respond to a drastic increase in energy prices.
A Danish electricity socket. The country's political parties have begun discussing how to respond to a drastic increase in energy prices. File photo: Kristian Djurhuus/Ritzau Scanpix

Both electricity and petrol have gone up significantly in price, making everyday living costs in Denmark notably higher.

Minister for Climate and Energy Dan Jørgensen invited representatives from other parties to initial talks on Tuesday about the high energy prices prior to negotiations over potential measures, broadcaster DR reported.

The government takes the issue “very seriously”, the minister previously told DR in a written statement, but no specific plan for a response has yet been outlined.

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So far, 100 million kroner have been earmarked in this year’s budget for municipalities to use to give subsidies to low-income persons receiving social welfare benefits and people who receive the state pension. The fund is a top-up to an existing scheme.

Talks in parliament over the present situation will revolve around whether additional money should be spent helping people who now find themselves facing huge energy bills.

The negotiations are likely to revolve around the nature of any measures and how much should be spent, according to DR.

The Conservative and Danish People’s Parties want 2.7 billion kroner to be spent on people who are hardest-hit by the high prices. That figure comes from a saving the government has made on subsidies to the sustainable energy industry, which are not due because of the revenues the industry is seeing because of the prices. A degree of uncertainty can be attached to the 2.7 billion figure, which is a calculation.

READ ALSO: Could high costs for Danish producers be passed on to customers?

The Liberal Alliance party wants to cut energy taxes, including a reduction to electricity tax to bring it down to the minimum set by the EU, DR writes.

The Liberal (Venstre) party, the largest party in opposition, said on Tuesday it was vital that a response to the situation in some form was agreed upon.

“There are different models for a solution, but what is crucial must be to make bills cheaper,” Liberal climate and energy spokesperson Marie Bjerre told news wire Ritzau.

The Liberals are also in favour of a tax reduction for electricity, Ritzau writes.

On the left wing, the Red Green Alliance and Socialist People’s Party say they want more government spending on energy subsidies.

The latter party said it did not support cutting taxes, with spokesperson Signe Munk telling Ritzau that energy tax reforms “should be looked in an overall political negotiation which both takes into account the long-term effects and supports CO2 reduction”.

“What we have right now is an extraordinary increase in prices,” Munk said.

The centre-left Social Liberal (Radikale Venstre) party appeared sceptical about the redeployment of funding from other areas of government spending on energy.

“It is like buying an iron for 200 kroner with a 500 kroner saving and saying you now have 500 kroner,” the party’s energy spokesperson Rasmus Helveg Petersen told newspaper Berlingske in reference to the discussion of using savings from the unused sustainable energy subsidies.

The governing Social Democrats so far remain the only party not to have made its position clear on how to respond to the energy price crisis.

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MONEY

What happens if you don’t pay a bill in Denmark?

Denmark's courts can enforce collection of unpaid debts and fines. So, what happens as an unpaid bill moves through the system, and can you do anything if you have a black mark on your record?

What happens if you don't pay a bill in Denmark?

What happens when you have a bill?

Usually, if you have a bill in Denmark (or receive a fine like a parking or speeding ticket), you will receive an invoice (faktura, also known as a regning or ‘bill’either digitally or via post. This will include details such as the amount owed, who to pay and the date payment is due (betalingsdato or forfaldsdato).

If you don’t pay the invoice on time, the person you owe money to will initially send you a rykker or reminder. This can be sent from days to weeks after the original payment date has passed, and will often be accompanied by a rykkergebyr or late payment fee, for the a relatively small amount of 100 kroner. Up to three of these can be sent.

If you pay a bill after the due date but before a rykker reaches you, there are usually no further consequences.

If you still don’t pay after receiving these reminders, the creditor may turn the case over to inkasso, or a debt collection agency, who will again send you an invoice for payment, plus the agency’s fee – likely to be considerably higher than the late payment fee from the creditor.

It’s also worth keeping in mind other consequences of not paying bills – for example, a landlord may be able to cancel your rental contract if you do not pay rent within a given time. This will be stated in the contract.

What happens next?

If this invoice goes unpaid, the courts may eventually get involved.

If you don’t pay after the debt has been sent to an inkasso agency, you will be summoned to the fogedret, essentially a court for settling debts between individuals and businesses. The summons is usually delivered via e-Boks, the secure digital post system used in Denmark. Fogedret courts come under the district court system, so there will be one local to where you live.

At the court, you will be required to agree on a new payment system with the creditor. This could cost more than the original invoice because the creditor’s costs are accounted for.

The final step of this process allows the creditor to forcibly recover your debt through any assets you might have, like a house or car. These can eventually be confiscated and auctioned under the court’s authority if the debt is not paid off under the agreed schedule.

Denmark’s debt collection agency (Gældsstyrelsen) can meanwhile make deductions from your salary if you have unserviced debts to the state.

If you cannot agree a payment schedule and do not have any possession against which the debt may be recovered, you may be able to declare insolvency.

The RKI register

RKI is Denmark’s national register of people who have defaulted debts. Every big company subscribes to this register, which is important because it can make it harder to be approved for a mortgage or other loan, a rented apartment, credit card, or even a phone contract or fuel discount card.

You can check whether you are on Denmark’s RKI register by visiting the dininfo.dk website and logging in using your MitID digital ID.

Can I do anything to be removed from the RKI?

RKI registrations last for a standard five years per defaulted debt – so after this time, you may no longer appear on the register. Additionally, if you agree a payment schedule with a creditor, you may be able to include removal from the RKI register as part of this agreement.

Sources: dingaeld.dk, borger.dk

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