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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

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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