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ENERGY

Denmark gives cash to 400,000 households hit by energy costs

A cash payout of 6,000 kroner was sent to around 400,000 households in Dennmark on Wednesday in a measure intended to relieve people struggling with high energy costs.

Published: 10 August 2022 16:33 CEST
Denmark gives cash to 400,000 households hit by energy costs
Danish minister for climate, energy and critical supplies Dan Jørgensen confirms a one-off cash benefit for eligible homes amid high energy prices in February 2022. Photo: Liselotte Sabroe/Ritzau Scanpix

The one-off payouts, which were agreed by parliament in March, were sent on Wednesday to over 400,000 households which meet the criteria set to receive the relief.

“We hope that this outstretched hand of 6,000 kroner will be a helping hand in a difficult time for Danes who are finding it hardest of all due to increasing heating prices,” the minister for climate, energy and critical supplies, Dan Jørgensen, said in a statement.

All residents of Denmark are eligible to receive the payments, provided their household meets the relevant criteria – not just Danish nationals as could be inferred from Jørgensen’s statement.

“It was important for the parties behind this agreement to help in a way that could be felt and in a targeted way. We think this cash will make a difference,” he said.

Households with a collective pre-tax income of under 706,000 kroner are eligible for the one-off cash boosts, which are costing the government 2.4 billion kroner.

Additionally, the household should be primarily heated by individual gas heaters, electronic radiators or be located in a district heating area in which the heating is produced by at least 65 percent gas.

Eligible houses do not have to apply for the cheque and will receive the payment automatically to their designated account (Nemkonto). In households with more than one person, the oldest member of the household receives the payment.

Errors in registration data can result in households which meet the criteria not receiving payments automatically, according to the Danish Energy Agency. People who believe that their household meets the criteria, but have not received the money, will be able to apply for it to be sent to them at a later date. Application will be possible from January 2023. 

Jørgensen said on Wednesday that the government did not expect any further cash payouts to be made to homes heated by gas. Instead, the government’s focus is to move away from dependence on gas as an energy source.

“Before the summer holidays we made a plan that ensures we phase out gas as a heating source, he said.

READ ALSO: Denmark announces major plan to replace gas heating in homes

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ENERGY

Danish electricity company announces ‘record negative prices’ after sunny May

A high number of sunny days in May gave Danish energy company Norlys a record number of hours in which its energy prices were negative, the company said on Monday.

Published: 3 June 2024 09:45 CEST
Danish electricity company announces 'record negative prices' after sunny May

Last month saw a total of 75 and 59 hours of ‘negative’ electricity prices in the western and eastern halves of Denmark respectively, Norlys said in a press release.

Unfortunately, a ‘negative’ price doesn’t mean you will be paid for switching the lights on, because taxes and transport costs must still be added to the base price.

Specifically, the total price paid by customers can include (in addition to the base rate) state tariffs, subscriptions, one-off charges, VAT and payments to the local energy grid.

Tariffs, like the cost of raw electricity, can also fluctuate from hour to hour. This depends on the tariff model used by individual companies.

But lower electricity prices can be taken advantage of by setting timers on thirsty appliances like dishwashers and tumble dryers and running them at these times. This can include off-peak times of the day when there is less demand for power, as well as fluctuations related to production.

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The total of 134 hours across Denmark in which customers receive a discount due to the negative ‘raw’ energy price is a record for a single month, Norlys said.

“We know that many of our customers follow electricity prices closely and the trend in May also underlines that there is a very good reason for this,” Norlys director for energy sales Mads Brøgger said in the statement.

“It’s good for your wallet and the green transition alike if you can plan your consumption for the hours in which there is a lot of sun and wind, making the electricity price low,” he said.

READ ALSO: How an app function can help cut your Danish electricity bill

May’s high frequency of negative base electricity rates can be attributed to the pleasant spring weather, which provided both wind and sun to the energy system in Denmark.

Meanwhile, Denmark’s electricity infrastructure has become more closely connected to other parts of Europe, notably Germany and The Netherlands. Both countries have increased their solar power capacity in recent years.

“It benefits us to have many sunshine hours, as was the case in May. Meanwhile, energy consumption was low in May because it was warm enough not to need electricity for heating, but not hot enough to need it for cooling. So there was a sweet spot in many ways,” Brøgger said.

The trend of low electricity prices has so far continued into June, with negative base rates occurring on Sunday for a number of hours in both the eastern and western parts of the country.

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