Advertisement

Danish energy company suspends fixed rate contracts

The Local Denmark
The Local Denmark - [email protected]
Danish energy company suspends fixed rate contracts
An illustration photo of an electricity meter. A Danish electricity provider has ripped up fixed rate contracts amid soaring costs. Photo: Kristian Djurhuus/Ritzau Scanpix

A local Danish energy provider has suspended fixed rate contracts with private and business customers.

Advertisement

Recent months have seen both households and companies in Denmark suffer from drastic increases in the price of electricity. The effects are now impacting electricity customers who signed deals to protect themselves against price changes, broadcaster DR reports. 

Electricity provider SK Energy, which is located in the Zealand town of Slagelse, made the decision to suspend fixed rate business and private contract in light of rocketing electricity and gas prices, DR writes.

The decision was described as regrettable but necessary by the company’s CEO Henrik Birch.

Advertisement

“This is a highly unusual situation and I can only deeply apologise for us doing this. But I think we have to do it because we don’t know what will happen this coming winter,” Birch told DR.

The CEO also said he understands customers who feel let down after signing fixed rate contracts to protect themselves against price changes, DR writes. He added he hoped they would understand the nature of the situation.

The changes take effect three months from now.

The average price of electricity in Denmark was in May reported to have climbed 18 percent from the last quarter of 2021 to the first of 2022.

Several factors are behind the upward trend in the price of electricity, but the primary reason is the cost of natural gas, which has multiplied since late 2021. That has resulted in higher overheads for electricity suppliers. Gas supplies from Russia to Europe have meanwhile broken down following the Russian invasion of Ukraine.

READ ALSO: 'Shop around': Danish agency as electricity prices climb 18 percent in three months

More

Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.

Please log in to leave a comment.

See Also