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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.

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

How to apply for Denmark’s 6,000 kroner energy relief if you were missed by automatic payments

Denmark last year sent an automatic 6,000-kroner payout to eligible households in a measure intended to relieve people struggling with high energy costs. People who think they may qualify for the money, but didn’t receive it, can soon apply.

How to apply for Denmark’s 6,000 kroner energy relief if you were missed by automatic payments

The tax-free cash payout of 6,000 kroner was approved by parliament last spring in response to rising energy prices and sent out in August to households which met the set criteria.

The payments were made automatically, so no application was needed at the time.

Households with a collective pre-tax income of under 706,000 kroner were eligible for the one-off cash boosts. Additionally, the household should be primarily heated by individual gas heaters (or have experienced similar increases to bills as such homes) or be located in a district heating area in which the heating is produced by at least 65 percent gas.

But errors in registration data could result in households which meet the criteria not receiving payments automatically, the Danish Energy Agency said at the time.

People who believe that their household meets the criteria, but have not received the money, can therefore apply for it from early 2023.

A significant number of people also received the money even though they did not fulfil the criteria, for example because they had replaced their gas boilers but the registration data on their homes was outdated.

READ ALSO: Up to 70 Danes offer to pay energy money back to government

An additional application round for the heating cheques opens on March 14th, according to a notice from Energy Minister Lars Aagaard to parliament’s energy committee.

“The vast majority of households which are entitled to the heating cheque have received the payment. Some households, which are entitled according to the law have meanwhile seen circumstances which mean they unfortunately didn’t receive the cheque automatically,” he wrote.

Specifically, the Danish Energy Agency (Energistyrelsen) will open a digital application platform via the website varmecheck.dk.

If your household did not receive the payout last year, you can apply for it if the household’s overall income in 2020 was less than 650,000 kroner (after the AM-bidrag tax contribution is deducted).

Application must be made within an eight-week window. You can enter your email address on the varmecheck website to receive a reminder when the application round opens.

“Reasons that households have not received the cheque automatically could for example be that there was data missing or not sufficiently ready for an automatic payment to happen, [or] that the oldest person in the household didn’t have a Nemkonto [designated bank account, ed.] for the money to be paid into,” Aagaard wrote in the parliamentary note.

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