Denmark’s parliament has moved to limit the rate residents pay for district heating, which can vary by thousands of kroner depending on location under current rules.
Annual district heating rates in 2023 varied from around 8,000 kroner to 39,000 kroner.
New rules agreed on by parliament will reduce this by introducing a limit on prices which is based on the cost of the heating pump, according to a press statement from the Ministry of Climate, Energy and Utilities.
“If the expansion of district heating is to be successful, district heating must not be more expensive than other green energy options,” Utilities Minister Lars Aagaard said in the statement.
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.
Denmark is increasingly switching homes from freestanding heating systems to district heating networks in a bid to reduce emissions and become more self-sufficent on energy.
READ ALSO: Fjernvarme: How does Denmark’s district heating work?
The utilities authority, Forsyningstilsynet, will begin publishing annual lists of companies which are charging more than the limit so that consumers have the opportunity to switch supplier.
After three years, the consumer will have the right to break any contracts with a supplier that remains over the limit.
“We are boosting transparency, leadership rules and inspections in the district heating sector,” Aagaard said.
The new rules follow a 2022 political agreement on green energy.
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