SHARE
COPY LINK

COST OF LIVING

Denmark households can postpone gas and electricity bills

The European Commission has officially given the green light to a scheme allowing businesses and individual households to defer paying excess electricity and gas bills, according to a press release from the Danish Ministry of Trade and Industry. 

A digital electricity metre in an apartment in Copenhagen
A digital electricity metre in an apartment in Copenhagen. Excess electricity bills in Denmark can be frozen from 1st November 2022. Photo: Kristian Djurhuus/Ritzau Scanpix

From 1st November, households and businesses can choose to “freeze” their bill for 12 months, at the price they paid for the same amount of electricity and gas in the fourth quarter of last year.

It means energy bills exceeding 2021 prices can be paid at a delayed time and in instalments. The additional cost of the bill, not the entire bill, will be eligible for delayed payment. 

When the freezing period of 12 months has expired, an interest-free year follows. Customers can then choose whether to pay the excess amount to the energy company, or whether to pay it off over a period of four years.

Customers can opt out of the scheme at any time during the process and settle the total debt at once. 

READ MORE: How much will Danish energy bills go up this winter?

The model is voluntary, meaning bill payers choose whether to freeze payments. The government are footing the bill with energy companies in the intervening period.

Customers need to contact energy companies to set up the repayment plan. Denmark’s largest energy company, Andel Energi has opened its digital registration for the scheme.

A similar scheme for postponing district heating bills is set to begin on 1st January. The freezing of energy bills is one of the components of the government’s winter package in response to record energy prices. 

As a result of supply stoppages for Russian gas, on top of inflation, energy prices in Denmark are expected to be high throughout the winter.

The government has also announced it will set electricity tax close to zero and increase welfare payments for families.

READ MORE: Denmark announces new winter aid package for households

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

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.

SHOW COMMENTS